Page 11 - Sebi Norms

Sebi announces launch of official X account for updates, notifications

Markets regulator Sebi on Tuesday announced the launch of its official X account -- @SEBI_updates. Accordingly, Sebi will be posting notifications relating to regulations, orders, circulars and press releases on the handle which will also be available on the regulator's website. "For quick access to various updates from Sebi, investors, corporates, intermediaries and other stakeholders may follow @SEBI_updates," the regulator said in a statement. The new handle was officially launched on April 4, it added.

Sebi brings standardized format for system, network audit reports of MIIs

Markets regulator Sebi on Friday introduced a standardised format for system and network audit reports of market infrastructure institutions (MIIs) such as stock exchanges, clearing corporations, and depositories -- to enhance the audit efficiency. Under this, Sebi will assign unique IDs to each observation in a bid to simplify the tracking of both current and historical audit issues. This new framework aims to improve data quality, ensure compliance with regulatory requirements, and streamline the monitoring of audit observations. This will apply to audits conducted from the fiscal year 2024-25, or the second half of the fiscal year, depending on the audit frequency. "The standardized format for system and network audit report would help to increase the data quality, capture of relevant information as per regulatory requirements in a streamlined and standardized manner across MIIs, monitor compliance requirements in a more focused manner, ease of traceability of current/historical

Sai Infinium files draft papers with Sebi to raise funds through IPO

Sai Infinium has filed draft papers with markets regulator Sebi seeking its clearance to garner funds through an initial public offering (IPO). The Gujarat-based company's IPO is entirely a fresh issue of 1.96 crore equity shares with no offer-for sale (OFS) component, according to the draft papers filed on Wednesday. The company plans to use funds to the tune of Rs 130 crore for setting up a 17.4-MW hybrid power plant, Rs 65 crore for the purchase of a rolling mill for mild steel (MS) structures, Rs 19 crore for buying a cargo vessel for the ship breaking plant and the remaining funds will be used for the company's general corporate purposes. Sai Infinium operates in three primary segments, manufacturing of MS (Mild Steel)billets and TMT (Thermo Mechanically Treated) bars, ship breaking and real estate in Gujarat. Its manufacturing plant produces MS billets and TMT bars from various raw materials, shipbreaking facility in Alang recycles ships, recovering metal for use in production

Sebi exempts government from open offer obligation in Vodafone Idea deal

Markets regulator Sebi on Thursday exempted the government from making an open offer to the shareholders of Vodafone Idea Ltd (VIL) following its proposed acquisition of just over 34 per cent stake in the telecom operator on the conversion of spectrum dues into equity. In its order, Sebi Whole Time Member Ashwani Bhatia said, "The acquisition of shareholding by GoI in VIL is proposed with the sole intent of protecting the larger public interest." The conversion -- which would raise the government's holding in the company to nearly 49 per cent from 22.6 per cent at present -- would enable VIL, a major TSP, to continue servicing its customer base and increasing telecom penetration in India. While giving exemption, Sebi noted that at present GoI has no intent to participate in the management or the board of VIL and there will be no change in control of the telecom firm. Further, such holding will be classified as public shareholding. Last month, the government threw a lifeline to the

Sebi introduces document number verification system for transparency

Markets regulator Sebi on Thursday launched a 'document number verification system' to ensure verifiability of all documents issued by it. This has been launched keeping in mind the public interest and transparency in the functioning of the Securities and Exchange Board of India (Sebi). Under the system, any physical communication such as letters, notices, show-cause notices and summons issued by Sebi will bear an outward number, which is unique for every communication issued by the regulator, according to a statement. The process intends user verification through authentication of the one-time password (OTP) generated on the mobile number of the recipient(s) or any other person acting on their behalf who may then enter such outward number as well as other credentials like sender's name, date of the communication and the name of the recipient to verify the issuance of such communication by Sebi. The verification process, however, does not include the verification of contents of the

MRN Chamundi pays ₹56 lakh to settle market norms violation case with Sebi

MRN Chamundi Canepower and Biorefineries has settled a case with capital markets regulator Sebi over alleged violations of the Companies Act, after paying Rs 56 lakh towards the settlement amount. The order came after MRN Chamundi filed a suo motu settlement application under the norms proposed to settle by neither "admitting nor denying the findings of fact and conclusions of law". "It is hereby ordered that any proceedings that may be initiated for the violations are settled in respect of the applicant (MRN Chamundi Canepower and Biorefineries)," Sebi's whole-time members Amarjeet Singh and Kamlesh C Varshney said in the order on Tuesday. As per the settlement order, the markets watchdog will not initiate enforcement proceedings against MRN Chamundi Canepower for the violations. However, Sebi retained the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement. The violations pertained to the allotment of equity .

Sebi allows advisers, analysts to charge advance fees for up to a year

Capital markets regulator Sebi on Wednesday allowed investment advisers and research analysts to charge advance fees for up to one year. Under the existing rules, investment advisers (IAs) can charge fees in advance for up to two quarters if agreed upon by the client, while for research analysts (RAs), it was only for a quarter. "If agreed by the client, IAs and RAs may charge fees in advance, however, such advance shall not exceed fees for a period of one year," the Securities and Exchange Board of India (Sebi) said in its circular. The fee-related provisions such as fee limit, modes of payment of fees, refund of fees, advance fee, and breakage fees will only be applicable in the case of their individual and Hindu Undivided Family (HUF) clients (provided these clients are not accredited investors). These provisions will not be applicable in the case of non-individual clients, accredited investors, and in case of institutional investors seeking the recommendation of a proxy ...

Link Intime India pays ₹14.5 lakh to settle norms violation case with Sebi

Link Intime India on Tuesday settled a case with markets regulator Sebi for alleged violation of market norms after paying Rs 14.5 lakh towards the settlement amount. Link Intime India (now known as MUFG Intime India), a registrar to an issue and share transfer agent, had filed a settlement application on December 20 last year, the regulator said in the order. The order came after the applicant (Link Intime India) proposed to settle the instant proceedings initiated against it, without "admitting or denying the findings of facts and conclusions of law". As per the settlement order, the markets watchdog will not initiate enforcement proceedings against Link Intime India for the violations. However, Sebi retained the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement. "...in view of the acceptance of the settlement terms and... settlement amount by Sebi, the instant adjudication proceedings initiated against ...

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