Page 11 - Sebi Norms

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

Govt appoints Finance Secretary Tuhin Kanta Pandey as next Sebi chief

Pandey will be replacing present Sebi chief Madhabi Puri Buch

Market regulator Sebi sets 30-day deadline for NFO corpus deployment

Change comes amid criticism around surge in new offerings by asset managers

Sebi slaps Rs 50 lakh fine on three FPIs for flouting market norms

Capital markets regulator Sebi on Monday slapped penalties totalling Rs 50 lakh on three foreign portfolio investors for exceeding the prescribed limits on short-term investments in debt securities. In three separate orders, the regulator slapped a fine of Rs 20 lakh each on Nexpact Ltd and AIRD Investment Commercial LLC, while it imposed a penalty of Rs 10 lakh on Aviator Global Investment Fund. The orders came after Sebi had carried out inspections of the custodian, Orbis Financial Corporation, for FY22. The regulator observed that investments made by Aviator Global Investment Fund, Nexpact Ltd and AIRD Investment Commercial LLC were not in line with the permissible limits (related to residual maturity) for investment in debt securities applicable for FPIs as on March 31, 2022. Thereafter, Sebi carried out an examination from April 2018 to November 2023 to assess the compliance of the three entities with respect to the provisions of FPI (Foreign Portfolio Investors) rules as well

Sebi slaps Rs 10 lakh penalty on Axis Securities for violating stock rules

Capital markets regulator Sebi has imposed a penalty of Rs 10 lakh on Axis Securities for flouting stock brokers rules as well as other regulatory norms. The penalty has to be paid by the brokerage firm within 45 days, the regulator said in an order on Friday. In an 82-page order, Sebi found that Axis Securities failed to follow regulatory procedures in several areas, including reporting discrepancies and improper handling of client funds. The market regulator found that Axis Securities had inconsistencies in its enhanced supervision reporting to stock exchanges and in stock statements compared to actual holdings in depository accounts. The Securities and Exchange Board of India (Sebi) also observed that Axis Securities also did not settle clients' funds and securities as per preference obtained from the clients and also failed to provide retention statements with account details. Additionally, the brokerage firm passed on penalties imposed by stock exchanges on it for short ...

Monarch Networth Capital settles Sebi case over stock brokers' rule breach

Monarch Networth Capital Ltd on Friday settled with markets regulator Sebi a case pertaining to alleged violation of stock brokers' rule after paying Rs 11.37 lakh towards settlement amount. This came after the entity approached Sebi proposing to settle the pending proceedings "without admitting or denying the findings of fact and conclusions of law" through a settlement order. The stock broker remitted Rs 11.37 lakh and accordingly "the instant proceedings initiated against the applicant (Monarch Networth Capital) vide show cause notice (SCN) dated June 27, 2024, are disposed of ". The Securities and Exchange Board of India (Sebi) had conducted an investigation into the trading activities in the scrip of Atlantaa Ltd during the period August 1, 2022 to November 23, 2022. The investigation was conducted to ascertain whether or not there was any violation of the provisions of Sebi Act 1992 and the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules. Following the ...

Small, midcaps' correction: No need for Sebi's statement, says Buch

Sebi Chairperson Madhabi Puri Buch on Friday said there is "no need" for the capital markets regulator to comment on the recent steep correction in small and midcap stocks. Drawing from her statement in March last year on the high valuations in the same stocks, Buch said Sebi had flagged its concerns on the high valuations when it saw a need for it. "On midcaps and small caps, I think that at a point in time when the regulator felt the need to make a statement about it, the statement was made. Today, the regulator feels no need to make an additional statement," she said speaking at an AMFI event here. It can be noted that the small and midcap stocks are in bear territory lately, with some scrips declining by over 20 per cent in quick succession. In March 2024, in what is a rare comment from the regulator, Buch had flagged concerns about the high valuations in the two segments. "There are pockets of froth in the market. Some people call it a bubble, some may call it froth. It may n

Data via depositories' apps to help curb fraud, says Sebi chief Buch

New features to enable voting on resolutions, inheritance tracking

Sebi amends mutual fund rules, sets time limit for NFO fund deployment

Markets regulator Sebi has amended mutual fund rules asking asset management companies (AMCs) to deploy the money collected from investors through New Fund Offers (NFOs) in a prescribed time limit. Additionally, the regulator has mandated disclosure of stress testing for mutual fund schemes to provide greater transparency to investors. These measures, to be implemented from April 1, 2025, are aimed at enhancing operational flexibility for mutual funds while ensuring greater accountability and trust among investors. Regarding deployment timelines, Sebi, in a notification dated February 14 said, "The scheme shall deploy the funds received in the new fund offer within the time period as may be specified by the Board from time to time." This came after the board of Sebi approved a proposal in December asking fund managers to deploy funds collected during an NFO as per the specified asset allocation of the scheme, typically within 30 days. If funds are not deployed within the specified

Sebi cancels registration of 19 foreign venture capital investors

Among the 14 entities whose strike-off dates were available, 11 had been defunct for more than five years, while three had been defunct for periods ranging from 10 months to three years

Sebi cancels registration of 19 FVCI cos for failing to meet eligibility

Capital markets regulator Sebi on Tuesday cancelled the registration of 19 defunct FVCI (Foreign Venture Capital Investors) after they failed to meet the eligibility criteria. The 19 entities include Axis Capital Mauritius, Axis India Infrastructure Holdings, Blackstone Capital Partners (Singapore) VI FVCI Pte Ltd, P6 Asia Holding Investments (Cyprus) Ltd, Pequot India Mauritius IV, Ltd and Omega FVCI Investments Pte Ltd. In its order, Sebi noted that these defunct FVCI companies are no longer in existence as incorporated entities in their respective jurisdictions and thereby no longer satisfy the condition of being an entity incorporated outside India as stipulated in the FVCI Regulations. The regulator observed from the website of the Business Registration Department of Mauritius, Cyprus and Singapore, that the status of 19 FVCIs in their parent jurisdictions was defunct. Additionally, the entities had not informed Sebi about the change in their regulatory status -- the entitie

Sebi revises timelines for issuance of consolidated account statements

Capital markets regulator Sebi has revised the timelines for the issuance of Consolidated Account Statements by depositories to enhance compliance ease. In a circular issued on Friday, the regulator said the asset management companies (AMCs) and mutual fund registrar and transfer agents (MF-RTAs) are required to provide common PAN data to the depositories within five days from the end of the month, instead of the earlier three-day deadline. After receiving the data, the depositories will then consolidate and dispatch the CAS to investors who opt for electronic delivery (e-CAS) by the 12th day of the month and to those preferring physical copies by the 15th day from the month-end, it noted. Under the revised framework, in respect of half yearly CAS, Sebi decided that "the AMCs/MF-RTAs shall provide the data with respect to the common PANs to the depositories on or before 8th day of April and October every year". Also, the depositories will then consolidate and dispatch the consolida

Sebi issues rules for disclosure on related party transaction approvals

Markets regulator Sebi has introduced industry standards for the minimum information that listed entities are required to provide to the audit committee and shareholders when seeking approval for the related party transactions (RPT). The Industry Standards Forum (ISF) comprising representatives from three industry associations -- ASSOCHAM, CII and FICCI -- have formulated these standards for minimum information to be provided for review of the audit committee and shareholders for approval of RPTs in consultation with Sebi under the aegis of the stock exchanges. The industry associations and stock exchanges will publish these standards on their websites to facilitate a uniform approach and assist listed entities in complying with the requirements, the Securities and Exchange Board of India (Sebi) said in a circular on Friday. The new disclosure requirements will come into effect from April 1, it added. Under Sebi's LODR (Listing Obligations and Disclosure Requirements) rules, relate

Sebi suggests new financial disclosures rules for Reits, InvITs' offer docs

Sebi on Friday floated a draft circular proposing REITs, InvITs to disclose financial information in their offer documents inline with public issue and listing norms. The proposed revisions focus on financial disclosures in offer documents and continuous compliance requirements post-listing. These changes are based on the recommendations from the Working Group on Ease of Doing Business for REITs and InvITs, inputs from the Indian REITs Association and Bharat InvITs Association, and internal deliberations, Sebi said. Additionally, the regulator proposed that Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) will be required to disclose combined financial statements for initial public offerings, irrespective of their operational tenure. Further, follow-on offers will need to present audited consolidated financial statements along with links to individual audited reports on their websites, it added. To enhance investor protection, the regulator inten

Sebi extends timeline for AIFs to hold their investments in demat form

Sebi on Friday said it has relaxed the timeline for alternative investment funds to hold their investments in dematerialised (demat) form. According to a circular, any investment made by an AIF on or after July 1, shall be held in dematerialised form only, irrespective of whether the investment is made directly in the investee company or is acquired from another entity. However, any investments made prior to July 1, are exempted from the requirement of being held in dematerialised form, except in specific cases, it added. Under the revised framework, the regulator stated that investments made before July 1, must be converted into dematerialised form before October 31. If, the investee company of the AIF has been mandated to facilitate dematerialisation or if the AIF exercises control over the company along with other Sebi-registered entities required to hold investments in demat form, the circular said. The markets watchdog has also granted exemptions to schemes of AIFs whose tenu