Page 10 - Sebi Norms

Sebi includes Green Credit Program under BRSR framework

Capital markets regulator Sebi on Friday decided to include disclosure pertaining to the 'Green Credit Program' by listed companies under the Business Responsibility and Sustainability Reporting (BRSR) framework. The Green Credits can be generated by a listed company and its value chain partners through plantations of trees on waste or degraded lands and river catchment areas. In its circular, Sebi said that 'green credits' generated by the listed company and their top 10 value chain partners can be added as a leadership indicator under Principle 6 of BRSR, which states that businesses should respect and make efforts to protect and restore the environment. This new requirement will be applicable for BRSR disclosures starting from FY 2024-25 and onwards. The disclosure is also in line with the Ministry of Environment, Forest and Climate Change notification issued in February 2024. In addition, Sebi has redefined 'value chain partners', which now encompass the upstream and downstrea

Front running case: Sebi bans 5 from mkts for 1 year, impounds Rs 1.53 cr

Capital markets regulator Sebi on Friday barred five individuals from the securities markets for one year and directed them to impound illegal gains of nearly Rs 1.53 crore made from their front-running activities. The regulator also imposed a penalty of Rs 10 lakh on Nikhil Khaitan, and Rs 5 lakh on Om Prakash Khaitan, Manju Khaitan, Neha Khaitan, and Nidhi Tibrewal. Front-running refers to an illegal practice in the stock market where an entity trades based on advanced information from a broker or analyst before the information has been made public. "... noticee No 1 (Nikhil Khaitan), while being dealer of the Big Clients and having knowledge of... impending orders, front ran the trades of big clients by using trading account of the FRs (Noticee No. 2, 3, 4 and 5) during the IP (investigation period) and gained benefit from non-public information," Sebi said in a 49-page final order. Sebi also stated that the noticees in the process of front running trades of the big client have

Blackstone-backed ASK gets Sebi approval to enter mutual fund business

Blackstone-backed ASK Asset & Wealth Management Group on Friday said it has received an in-principle approval from the markets regulator Sebi to start its mutual fund business. This development marks a significant step in ASK's expansion plans. The mutual fund offering will complement ASK's existing suite of investment solutions, which cover listed equity portfolio management, and wealth management, providing a broader range of opportunities for investors across segments. "We have received in-principle approval for entering the mutual fund business. India's investment landscape is evolving rapidly, and we see a tremendous opportunity to bring our research-driven, client-centric investment approach to a wider audience. "We are confident that with ASK's deep-rooted expertise and commitment to long-term wealth creation, and with our legacy of trust and performance, we will be able to offer differentiated products that cater to the diverse needs of investors. We look forward to ...

Markets Today: FIIs; Sebi proposal; Trump tariffs; Gold; Active, Rapid IPOs

FY25 wrap: At 6:34 AM, GIFT Nifty Futures were down 28 points at 23,749, suggesting a negative start

NSE IPO hangs in the balance as Sebi flags regulatory gaps in fresh letter

In a detailed communication, regulator spells out areas that bourse has to address before it goes for an IPO

Pre-clearance seen as key defence for IndusInd Bank execs in Sebi probe

Sebi probes potential insider trading in bank's share sales

Sebi slaps Rs 40 lakh on 8 entities for indulging in non-genuine trades

Capital markets regulator Sebi on Wednesday imposed penalties totalling Rs 40 lakh on eight entities for indulging in non-genuine trades in the illiquid stock options segment on the BSE. In eight separate orders, the watchdog slapped fines of Rs 5 lakh each on Dwitiya Trading Ltd, Vineeta Kabra, Puneet Sabharwal HUF, Hemant Purshotamdas Gopani HUF, Mudrikaben Pareshkumar Shah, Gopalkrishna Ratanlal Shah HUF, Prabir Saha, and Sudha Jain. The orders came after the Securities and Exchange Board of India (Sebi) observed large-scale reversal of trades in the illiquid stock options segment of BSE, leading to the creation of artificial volume. Thereafter, Sebi conducted a probe into the trading activities of certain entities in illiquid stock options on BSE for the period from April 2014 to September 2015. According to Sebi, reversal trades are the trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or buy positions with the same counterparty.

Sebi allows trading in Bharat Global Developers shares with conditions

With an aim to protect the interests of investors, markets regulator Sebi on Wednesday allowed trading in the shares of Bharat Global Developers Ltd (BGDL) with the condition to disclose key financial numbers including sales, purchases and profit for the financial year 2024-25 before April 15. Sebi, through an interim order in December, suspended trading in Bharat Global Developers for financial misrepresentation, misleading disclosures, price manipulation, and offloading shares at inflated prices. Additionally, it had put several restrictions on the company and its officials. In its confirmatory order on Wednesday, Sebi directed BGDL to disclose key financial numbers including sales, purchases, profit and net worth for the financial year 2024-25 to the exchange before April 15. Two days after such dissemination, trading in shares of BGDL can resume, Sebi said in its confirmatory order. The latest order came after several investors lodged complaints that their investments are stuck

Sebi slaps Rs 35 lakh on 7 entities for indulging in non-genuine trades

Capital markets regulator Sebi on Tuesday slapped penalties totalling Rs 35 lakh on seven entities for indulging in non-genuine trades in the illiquid stock options segment on the BSE. In seven separate orders, the markets watchdog levied a fine of Rs 5 lakh each on Shyamal Kishore Agarwal, Pankaj Kumar Agarwal, Vijay Kumar Chaudhary, Raj Kumar Nemani, Nina Nag, Subhranshu Roy HUF and Ratan Lal Sipani HUF. The orders came after the Securities and Exchange Board of India (Sebi) observed large-scale reversal of trades in the illiquid stock options segment of BSE, leading to the creation of artificial volume. Thereafter, the markets watchdog conducted an investigation into the trading activities of certain entities in illiquid stock options on BSE for the period April 2014 to September 2015. According to Sebi, reversal trades are the trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or buy positions with the same counterparty. The reversa

Sebi proposals seek orderly conduct in F&O market amid volatility

Even as its proposed measures and those announced last year have helped, Sebi will need to be fleet-footed in its regulation and supervision of this market

Sebi relaxes 'skin in the game' rules for MF employees, effective April 1

The revised rules also adjust lock-in periods. For employees retiring at superannuation age, the lock-in will be waived, except for units in closed-ended schemes

Sebi considers easier IFSC access for brokers operating from Gift City

In a consultation paper released on Friday, Sebi outlined plans to allow stock brokers to conduct securities market activities in Gift-IFSC through a separate business unit

Unregistered advisors a threat; 70k misleading posts removed: Narayan

Markets regulator Sebi, in consultation with social media platforms, has removed 70,000 misleading handles and posts since the implementation of the fin-influencer framework last year, said its whole-time member Ananth Narayan G on Friday. Amid concerns over foreign portfolio investors selling equities, the Sebi's whole-time member said the overall flows are not as bad as one would imagine and stressed that they "remain invested" in India. The unregistered investment advisors and research analysts are a "menace" who are cashing in on the rising interest in investments, he said. "Since October 2024, Sebi has worked with social media companies to bring down over 70,000 misleading handles/posts," he said while addressing an event organised by registered investment advisors here. He sought the advisors' help in ensuring compliance and mentioned the UPI 'Payright' handle to help identify Sebi-registered entities and the optional Centralised Fee Collection Mechanism as Sebi's efforts in

Sebi mandates online filing for share reports, dual option until May 14

Markets regulator Sebi on Thursday said that, starting immediately, reports related to certain exemptions in share acquisitions under the 'Takeover Regulations' can be submitted through both email and the newly-introduced intermediary portal. This dual submission system will remain in place until May 14, 2025, after which only the online portal will be used for these filings, Sebi said in a circular. Under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations), an acquirer is required to submit a report along with supporting documents and non-refundable fee to Sebi in respect of any acquisition of or increase in voting rights pursuant to certain exemptions. Currently, these reports are filed through email, but the regulator introduced an online system for filing of these reports through Sebi Intermediary Portal (SI Portal) in order to facilitate ease of operations in terms of submission and processing of these reports. Accordingly, in th

Sebi tweaks disclosure norms for shareholding patterns to improve clarity

Markets regulator Sebi on Thursday introduced modifications to the disclosure requirements for shareholding patterns in a bid to improve the clarity. Under the revised format, listed entities are required to disclose details of non-disposal undertakings (NDU), other encumbrances, and the total number of shares pledged or otherwise encumbered, including NDUs, Sebi said in a circular. Additionally, a new column has been added to capture the total number of shares on a fully diluted basis, including warrants, ESOPs, and convertible securities. Furthermore, a footnote in the revised format clarifies that promoter and promoter group entities with "nil" shareholding will also be reflected. These new requirements, which will come into effect from the quarter ending June 30, 2025, aimed at providing further clarity and transparency in the disclosure of shareholding pattern to the investors in the securities market. Sebi has directed stock exchanges to inform listed companies and update t

Sebi mulls clarifying ESOP rules for promoters; minimum holding term in OFS

With an aim to streamline the processes for public issues, markets regulator Sebi on Thursday proposed giving clarifications on minimum holding period for equity shares in Offer for Sale (OFS) as well as on employee stock options (ESOPs) for founders classified as promoters. In its consultation paper, the regulator proposed amendments to the ICDR (Issue of Capital Disclosure Requirements) rules and Sebi (Share Based Employee Benefits and Sweat Equity) norms. The proposals, if implemented, would ensure that the rules are clear and consistent, aligning the eligibility for Offer for Sale (OFS) and Minimum Promoter Contribution (MPC) requirements. The proposals aim to harmonise the treatment of shares obtained through different mechanisms such as compulsory conversion of securities or approved schemes. On minimum holding period for equity shares in OFS, Sebi has suggested amendments in the rules to clarify that the holding period for both the fully paid-up compulsorily convertible ...

Sebi to finalise SOP for settlement regulations amid rise in such cases

Markets watchdog Sebi is in discussions to finalise the standard operating procedure for applying settlement regulations for cases amid rising number of settlement matters. Besides, the Securities and Exchange Board of India (Sebi) is looking at having uniformity in applying the settlement formula for settling cases. Sebi Whole Time Member Kamlesh Chandra Varshney on Sunday said the regulator is working on the SOP for applying the settlement regulations. "It is work in progress... it is in final discussions," he told PTI. Under Sebi norms, subject to various conditions, a matter can be settled without admitting or denying the facts and conclusions of law. On the sidelines of a conference in the national capital, Varshney also said Sebi is looking at how to have consistency in applying the settlement formula. "Formula also has certain value to be given. Now different people should give same value for same situation in different cases... basically uniformity across cases... we will

Sebi expands the scope of unpublished price-sensitive information

Markets regulator Sebi has widened the ambit of the scope of Unpublished Price Sensitive Information (UPSI) by including any proposed fundraising activities agreements which can impact the management or control of the company, restructuring plans, and one-time bank settlements. The move is aimed at enhancing regulatory clarity, certainty and uniformity in compliance in the ecosystem. To give this effect, Sebi, in a notification issued on March 11, amended insider trading regulations. The new rules would come into force from June 10. In its notification, Sebi said that any proposed fundraising activity, upward or downward revisions in credit ratings, other than ESG ratings, and agreements affecting the management or control of the company would be considered as UPSI. Further, developments relating to corporate insolvency processes, including the clearance of resolution plans, one-time settlements, or restructuring of loans and borrowings from banks or financial institutions would fa

HDFC Securities settles Sebi case by paying Rs 65 lakh over violations

Domestic brokerage HDFC Securities on Tuesday settled with markets watchdog Sebi a case pertaining to alleged non-compliance with regulatory norms on payment of Rs 65 lakh towards settlement amount. The order came after the company filed an application with Sebi proposing to settle the alleged violations "without admitting or denying the findings of facts and conclusions of law" through a settlement order. In its settlement order, Sebi said,"the instant adjudication proceedings initiated against the noticee viz., HDFC Securities Ltd, vide SCN (show cause notice)...dated August 8, 2024, are hereby disposed of". In the SCN, it was alleged that requirement of generating alerts for current capacity utilization of critical assets going beyond 70 per cent was not available in the broker's IT policies and procedures with respect to capacity management procedure. Further, the broker had set alerts at more than 80 per cent and 75 per cent for its tool like Meap application and CPU utilisati

Sebi launches AML, CFT certification course for securities intermediaries

Sebi on Monday said it has launched a certification course to foster knowledge about the concepts of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) among the securities market intermediaries. This certification course aims to create a common minimum knowledge benchmark for employees and associated persons of securities market intermediaries about concepts of AML and CFT and related aspects, provisions of the PMLA & PML rules, and scheduled offences under the Sebi Act and the Companies Act, Sebi said in a statement. Additionally, it aims to promote knowledge about the guidelines pertaining to AML standards, CFT and proliferation financing among the market intermediaries. As part of its ongoing efforts to strengthen the capital market, the regulator has been organising outreach programmes on Anti-Money Laundering and Combating the Financing of Terrorism Provisions for the benefits of securities market intermediaries. The regulator has also been ...