Sebi fines Partap Steel for failing to secure SCORES

Sebi today imposed a penalty of Rs 5 lakh on Partap Steel Rolling Mills for its failure to get registered with the regulator's online complaint redressal system.
According to the order by Sebi, the company did not reply to the show-cause notice for the alleged violation and also no one from the firm turned up on the scheduled date of hearing.
"Therefore, the present proceedings against the noticee (Partap Steel) are undertaken ex-parte on the basis of available documents and information," Sebi's Adjudicating Officer Vijayant Kumar Verma said in the order.
The markets regulator imposed a penalty of Rs 5 lakh on the company, saying that though the company is declared sick, "financial crunch cannot be used as a plea to get away with regulatory obligations like dealing with investor grievances by uploading ATRs in SCORES".

SCORES, launched by Sebi in June 2011, provides a centralised database of all complaints. Online movement of complaints against the listed companies concerned and upload of their action taken reports (ATRs) are done through this system.
A consultation process is already underway for making the

InvITs(Infrastructure Investment Trusts), REITs (Real Estate Investment Trusts) Regulations and to review the framework for Institutional Trading Platform (ITP) for startups.
The regulator had notified the REIT and InvIT Regulations in 2014, allowing setting up and listing of such Trusts, which are very popular in some advanced markets.
Sebi's board is expected to consider an easier set of norms on REITs and InvITs. It may allow the REITs and InvITs to have up to five sponsors, as against the current norm for maximum three.

Under the proposal for REITs, Sebi would allow up to 20 per cent investment by such trusts in under-construction projects, up from a maximum of 10 per cent allowed currently.
Besides, relaxations would be made to provisions relating to compliance of minimum public holding norms, as also for investments by the associate entities of the trustees.
Sebi also proposed to rationalise the requirements under the Related Party Transactions, under which approval of 60 per cent unitholders apart from related parties, is required for passing a related party transaction.
Under the proposal for InvITs, Sebi may allow such trusts to invest in two-level SPV (special purpose vehicle).

The regulator plans to remove the restriction on the SPV to invest in other SPVs, thus allowing InvIT to invest in a holding company which subsequently holds stake in SPVs.
Currently, InvIT holds a controlling stake in SPVs that do not invest in other SPVs.
Regarding startups, Sebi plans changes to the framework of Institutional Trading Platform (ITP), which has not seen much traction even though it was put in place in August 2015. Not a single startup has been listed on this platform till date.
The valuation concern has also discouraged startups for listing on the platform.
The rules were brought in to encourage Indian startups and entrepreneurs to remain within the country rather than go overseas for raising funds.

Sebi would consider an easier framework that allows more investor categories, relaxed shareholding norms and reduced trading lot amount.