VC funds get relief; MCX gets approval for electricity derivatives

The market regulator had barred five officials from IndusInd Bank in the alleged insider trading matter

The Securities and Exchange Board of India (Sebi) has modified its ex-parte interim order in the IndusInd Bank matter. In theorder, Sebi had stated that KPMG was appointed for an external validation of the discrepancy figures through a ‘Board note’ dated January 29, 2024. In a corrigendum issued on Friday, the market regulator replaced the term ‘Board note’ to ‘Engagement Note’ signed by the CFO and the then MD & CEO, and the deputy CEO. The market regulator had barred five officials from the bank in the alleged insider trading matter.

 

liquidation period for VC funds extended 

The Sebi on Friday extended the liquidation period for venture capital (VC) funds migrating to the Alternative Investment Funds (AIFs) regulations by one year. The earlier deadline of July 19, 2025 has been extended to July 19, 2026. Sebi had earlier specified that VCFs which have schemes whose liquidation period has expired and are not wound up, and who migrate to AIF regulations will be granted additional period. Sebi has provided the additional period after representations from the industry.  The last date of July 19 for legacy VCFs to migrate to AIF norms remains unchanged. 

MCX gets approval for electricity derivatives  

Sebi has given approval to Multi-commodity Exchange (MCX) of India to launch electricity derivatives. The Electricity Derivatives Contracts will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the market. “These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms,” said Praveena Rai, MD & CEO, MCX. BS REPORTER