Sebi to seek reports on I-T raids from NCDEX, traders

E-commerce websites would be permitted to sell mutual funds next month

A day after the income-tax department conducted raids on NCDEX (National Commodity and Derivatives Exchange) and traders, the Securities and Exchange Board of India (Sebi) proposed to seek reports on it from them.

“We will seek a report,” said a Sebi officer.

The income-tax department had raided the offices of commodity traders and the NCDEX headquarters, after receiving complaints about hoarding and financial irregularities.

Mutual funds via e-tail
On the sidelines of the inauguration of private lender Bandhan Bank's 600th branch in Mumbai, Sebi chief U K Sinha said the proposal over sale of mutual fund units through e-commerce platforms would be cleared in a month.

"My guess is that in the next one month, this will be done," said Sinha. It is learnt that Sebi will clear the proposal in the coming board meeting set for the first half of January.



Sebi has set up a committee under Infosys co-founder Nandan Nilekani for digitisation and streamlining of sale of mutual funds.

According to the regulator, it wants to target young and educated people with high salaries and disposable income. "If these people are doing e-shopping, and they know financial markets, they should invest in MFs and that is the direction in which we are thinking," the Sebi chief said.

Besides, the Sebi chairman stated that this year maximum fund-raising was done by new age companies.

On listing of start-ups, Sinha said it would take its own time. "Important thing to note is that the regulations are in place. If there is a company under pressure, there is an alternative before the company to raise (funds)," Sinha noted, adding that the regulator was in talks with start-ups on this issue.

Sinha also noted that some start-ups have raised issues concerning taxation but the same was beyond the jurisdiction of Sebi.

On the pending circular to facilitate the listing of exchanges, Sinha said it would be released by the market watchdog in the coming weeks.

According to Sebi board minutes, the regulator has not diluted the ‘fit and proper’ norm for shareholders of a listed exchange. Every shareholder would be required to be fit and proper and they would need to file a declaration.

“During the allotment process, each applicant would be required to provide a self-declaration…In the post listing scenario, each shareholder shall submit quarterly an undertaking to confirm that they are fit and proper,” said Sebi.

For instance, if a shareholder is found to be not ‘fit and proper’, then the shareholder would be asked to divest its stake within a specified period. In the interim, the shareholding of the holder would be frozen.