Sebi to probe leak of additional surveillance measures stock list

The Securities and Exchange Board of India (Sebi) on Wednesday ordered an inquiry into the leak of the names of stocks to be placed under additional surveillance measures (ASM) ahead of an official announcement.

On May 31, stock exchanges released a list of 109 stocks on which additional trading curbs were to be imposed. However, hectic trading was seen in some of the stocks even before exchange notification. 

For instance, stocks such as Dilip Buildcon and Bombay Dyeing saw more than 20 per cent swing and closed more than 10 per cent lower. Both stocks were part of the list of stocks to be placed under ASM.

In the past, Sebi has been pulling up companies for leak of sensitive information. This time around the leak could be at the exchange or Sebi level, sources say.

Exchanges, in consultation with Sebi, decide additional risk management measures to curb volatility and excessive speculation. 

Sources say the market regulator will analyse trade data for the past few sessions to establish if any individuals or corporates made unlawful gains.

“Any unpublished price sensitive information that reaches a set of investors can potentially harm thousands of investors. Sebi should not only probe the source of the leak but should also look into investors who have made windfall gains in some of the ASM stocks,” said Alok Churiwala, managing director, Churiwala Securities.

Traders dealing in stocks under ASM have to provide 100 per cent margin money. Also, the circuit filters for such stocks is only five per cent.

CRAs can withdraw ratings of instruments 

Sebi on Wednesday allowed credit rating agencies to withdraw ratings assigned to a financial instrument and give a reason for such a move. This is aimed at strengthening the accountability and functioning of credit rating agencies (CRAs).

This is subject to the CRA having rated the instrument for five years in a row or 50 per cent of the tenure of the instrument.

Sebi extends Aadhaar deadline on PML rules

The markets regulator on Wednesday extended the date for submission of Aadhaar details by those investing in capital markets till a final judgement by the Supreme Court. For securities market, the requirement of PAN  would continue to be mandatory for completing the KYC (Know Your Client) process, Sebi added.

Angel fund investment limit in VCs at Rs 100 mn

To provide impetus to early-stage start-ups, Sebi has raised the maximum investment limit by angel funds in venture capital undertakings to Rs 100 million from the current Rs 50 million. In this fast-changing ecosystem, this kind of an increase was needed to provide more opportunities to angel funds, according to industry experts.