Page 11 - Sebi Norms

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 ...

Bondconnect Securities, others pay Rs 16 lakh to settle Sebi case

Bondconnect Securities and two others settled a case with Sebi, over alleged failure to ensure that all orders placed on the online bond platform regarding debt securities were routed through a stock exchange's RFQ platform, on payment of total Rs 15.92 lakh. In addition to Bondconnect Securities (formerly known as Wealthsigns Securities), Aditya Umeshchandra Mehta and Amal Manish Dani also settled the case. This came after the entities filed a settlement application with Sebi proposing to settle the alleged violation of regulatory norms "without admitting or denying the findings of facts and conclusions of law, through a settlement order". Acknowledging the settlement, Sebi in its order said," in view of the acceptance of the settlement terms and the receipt of the settlement amount ... the instant adjudication proceedings initiated against applicants vide SCN (show cause notice) dated October 24, 2024 is disposed of". In the show cause notice, it was alleged that the applicants

Bombay HC stays special court order directing FIR against Buch, five others

The court said order passed 'mechanically', adjourns the matter for four weeks

Sebi income rises 48% to Rs 2,075 cr in FY24, driven by fees, subscriptions

Capital markets regulator Sebi's total income rose 48 per cent year-on-year to Rs 2,075 crore in 2023-24, driven by increased earnings from fees and subscriptions. Of the total income, the regulator earned a fee income of Rs 1,851.5 crore, which was way higher than Rs 1,213.22 crore garnered in the preceding financial year, according to Sebi's annual statement of accounts 2023-24 made public on Tuesday. Additionally, income from investments widened to Rs 192.41 crore from Rs 161.42 crore and other income increased to nearly Rs 18 crore from close to Rs 15 crore. The Securities and Exchange Board of India (Sebi) acknowledged that fees and subscriptions are the major sources of its income. This category of income included earnings from annual fees and subscriptions, listing fees contribution from stock exchanges, income generated from registration, renewal, application and offer documents filed by companies and market infrastructure institutions. Overall, the market watchdog's total

Sebi brings in stricter disclosure norms for IPO-bound companies

New guidelines by Industry Standards Forum to take effect from April 1

Sebi extends deadline for reporting differential rights issues by AIFs

Markets regulator Sebi on Monday extended the deadline by a month to March-end for reporting differential rights issues by Alternative Investment Funds (AIFs). A one-time reporting requirement was set for AIFs that filed their Private Placement Memorandum (PPM) with SEBI on or after March 1, 2020, and issued differential rights outside the standard guidelines. This report was initially due by February 28, 2025. Following the requests for more time from the AIF industry, the deadline has been extended to March 31, 2025, the Securities and Exchange Board of India (Sebi) said in a circular. Earlier, the regulator amended the AIF Regulations, 2012 in November regarding investor rights in AIF schemes. Thereafter in December, laid out guidelines for AIFs offering differential rights to certain investors. Under the guidelines, Sebi directed AIFs to grant investors' rights in investment and distribution of proceeds in proportion to their commitments in a scheme. In simple words, risks as

Markets to policy: 11 challenges for new Sebi chief Tuhin Kanta Pandey

The regulator's 11th chairman will have to balance the interest of investors and policy changes