Page 13 - Sebi Norms

National Peroxide settles disclosure lapses case with Sebi for Rs 9.4 lakh

Wadia group firm National Peroxide on Tuesday settled with capital markets regulator Sebi a case pertaining to the alleged violation of disclosure lapses after paying Rs 9.4 lakh in settlement amount. The order came after National Peroxide Ltd filed an application in November last year with Sebi proposing to settle the instant proceedings initiated against it, without "admitting or denying the findings of facts and conclusions of law". "...the instant adjudication proceedings initiated against the noticee (National Peroxide Ltd) vide SCN dated September 10, 2024, is disposed of in terms of the settlement regulations," Sebi's adjudicating officer Asha Shetty said in the order. The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against National Peroxide Ltd for the alleged violation of scheme of arrangement dated June 20, 2023, under the LODR (Listing Obligation and Disclosure Requirements) rules. Thereafter, the markets watchdog issued a show ca

Market regulator Sebi turns the wrench on auditor appointments, RPT rules

Guardrails set to defend against ambiguity and strengthen compliance

Sebi mulls changes to compliance report format, auditors' appointment rules

To strengthen corporate governance at listed firms, Sebi has proposed a revised format for annual secretarial compliance report, eligibility criteria for the appointment of auditors and inclusion of monetary thresholds for Related Party Transactions (RPTs) approvals. These proposals are aimed at ensuring that listed entities maintain high standards of compliance and transparency in their dealings. In its consultation paper, Sebi has proposed changes to improve the format and content of the Annual Secretarial Compliance Report (ASCR), aiming for more explicit confirmation of compliance with securities law. The suggestions have been made for exemptions related to corporate governance certifications and secretarial auditor reports when ASCR is attached to the annual report. The proposals include better enforcement mechanisms and making the ASCR a mandatory part of the annual report. On specifying eligibility criteria for the appointment of statutory auditors, the regulator has propose

Sebi orders attachment of accounts of 10 individuals in Eros Media case

Sebi has ordered the attachment of bank accounts as well as shares and mutual fund holdings of 10 individuals to recover Rs 1.25 crore, saying they have not complied with the regulator's investigation in the matter of Eros International Media Ltd. The recovery proceedings were initiated against these 10 individuals -- Gourab Ray Chaudhuri, Manisha Kumari Singh, Vinod Kumar Agarwal, Sutapa Mukherjee, Sumit Bhoot, Abhishek Das, Dev Govind Binani, Debosmita Ghosh Dastidar, Debjit Medda, and Anindya Bikas Datta -- after they failed to pay the fine imposed on them by the regulator, Sebi said in 10 separate orders passed on Thursday and Friday. In its notices, the Securities and Exchange Board of India (Sebi) has ordered attachment of bank, demat accounts and mutual fund folios of these individuals to recover pending dues. Going by the notices, dues of totalling Rs 1.25 crore were pending with these individuals with the amount including interest and recovery costs. As per the notices, Se

Sebi mulls to extend automated closure of trading window ahead of results

Markets regulator Sebi on Friday proposed to extend the automated closure of trading window ahead of the declaration of financial results to the immediate relatives of designated persons of listed companies. The move, if implemented, would prevent inadvertent non-compliance of insider trading rules, according to a consultation paper floated by Sebi. The markets regulator, in August 2022, issued a framework restricting trading by depository participants by way of freezing the PAN at security level during the trading window closure period. The freezing of the PAN at the security level is being carried out by the stock exchanges and depositories based on the information provided by the listed company. Initially, this PAN freeze framework was made applicable for trading window closure on account of declaration of financial results of listed companies that were part of benchmark indices such as Nifty 50 and Sensex. Subsequently, Sebi in July 2023, extended the framework to restrict tra

Market regulator Sebi plans to ease AIF debt investment regulations

Due to shrinking universe of unlisted debt, Sebi has proposed to allow Category II AIFs to invest in lower-rated paper

NSE Clearing fails to meet liquidity norms; reports Rs 176.65 cr shortfall

NSE Clearing Ltd, the clearing house of the National Stock Exchange (NSE), has failed to meet the capital markets regulator Sebi's mandated liquidity requirements, citing the non-payment of dues by rival BSE as the primary reason for the shortfall. In its December 2024 quarterly results, NSE Clearing, the exchange's unit responsible for clearing and settling its trades, reported a shortfall of Rs 176.65 crore in its minimum liquid assets. The company informed Sebi in a letter dated January 9 that this deficit was primarily due to the non-receipt of Rs 312.37 crore in dues from BSE. An NSE Clearing spokesperson said its auditors flagged the outstanding payment issue in their third-quarter financial review. The outstanding amount pertains to "interoperability arrangements", the official said. "The company is yet to receive outstanding dues of over Rs 300 crore from BSE Ltd. NSE Clearing is communicating with BSE on this matter," the spokesperson added. The Securities and Exchange B

Sebi tightens algo trading rules to plug gaps, boost investor protection

Under the new norms, open APIs will not be permitted. Access will be granted only through a unique vendor client to ensure identification and traceability

Sebi penalises DB Realty, 7 others for misrepresenting financial statements

Capital markets regulator Sebi on Tuesday slapped fines totalling Rs 25 lakh on eight entities, including DB Realty, its promoters and other officials, for violations related to financial misstatements and non-disclosures. The regulator imposed a fine of Rs 5 lakh each on DB Realty Ltd (now known as Valor Estate), Vinod Kumar Goenka (Promoter and Chairperson-MD of DB Realty), and Shahid Balwa Usman (promoter and MD), according to a Sebi order. Sebi also levied a penalty of Rs 2 lakh each on Asif Yusuf Balwa, Jayvardhan Vinod Goenka, Salim Balwa Usman, Sunita Goenka and Nabil Yusuf Patel. In the final order, Sebi stated that DB Realty failed to comply with accounting standards in preparation and presentation of the financial statements in respect of guarantee given to Bank of India (BOI) on behalf of loan availed by PBPL which has resulted in the violation of the listing agreement/disclosure rules. "I find that event-based disclosures in respect of classification as NPA, invocation

Sebi imposes Rs 7 lakh fine on Motilal Oswal for violating broker rules

Markets regulator Sebi on Thursday imposed a penalty of Rs 7 lakh on Motilal Oswal Financial Services Ltd for flouting stock broker and depository participant rules. It has been directed to pay the fine within 45 days, according to an order passed by the Securities and Exchange Board of India (Sebi). This came after Sebi conducted inspection of the stock broker and depository participant, MotilalOswal Financial Services Ltd, jointly with stock exchanges and depositories for the inspection period from April 2021 to June 2022. In its probe, the regulator found that Motilal Oswal Financial Services did not resolve 26 complaints within a period of 30 days, transferred securities of credit balance clients to "client unpaid securities account", and incorrectly reported Margin Trading Funding (MTF) collaterals to the exchange. Additionally, it had done wrong reporting and short collection of margin on one instance in CM (capital market) segment, on one instance in FO (futures & options) .

SAT dismisses plea by Salasar Stock Broking in the Ketan Parekh case

Salasar will have to make the full deposit of wrongful gains in the alleged front-running matter

Sebi mulls amending investor charter for stock brokers to protect consumers

Markets regulator Sebi on Wednesday proposed reviewing the investor charter for stock brokers in a bid to boost financial consumer protection alongside enhanced financial inclusion and financial literacy. The proposal is also in view of the recent developments in the securities market including introduction of Online Dispute Resolution (ODR) platform and SCORES 2.0 - a web based centralized grievance redressal system of Sebi. In its consultation paper, Sebi has proposed to modify the investor charter for stock brokers and sought comments on the proposal till February 17. The proposed modified charter would include vision, mission, services provided to investors by brokers, various activities of brokers with timelines, DOs and DON'Ts for investors, grievance redressal mechanism and handling of investor's claims in case of default of a trading member along with the format for investor complaints data to be displayed by brokers on their respective websites and trend of annual disposal

HDB Financial Services faces regulatory hurdles amid $1.5 billion IPO plans

HDB Financial Services is under scrutiny for alleged companies act violations linked to a $1.5 billion ipo. sebi's findings could lead to penalties or delays in ipo filings, impacting hdb's compliance

Some equity firms shut shops after Sebi's new norms on research analysts

Markets regulator Sebi's new guidelines on research analysts (RAs) are forcing several equity research firms publicly announcing plans to shut down their shops due to heightened compliance and operational requirements. The Securities and Exchange Board of India (Sebi), on January 8, came out with guidelines for Research Analysts in a bid to curb fraudulent stock recommendations and illegal practices in the securities market. The new guidelines necessitate research firms to comply with stricter measures such as maintaining records of client interactions, conducting compliance audits, and following Know-Your-Customer (KYC) procedures and these requirements have led to increased operational costs for smaller entities. Consequently, a few firms including Sentinel Research, Stalwart Advisors, and Mystic Wealth have announced their plans of shutting their research services citing significant operational and compliance burden. Market experts said that the new guidelines have notably lower

Sebi to start pre-listing trading in IPO to curb grey market activity: Buch

Sebi is looking at introducing a system where an investor can sell shares as soon as they are allotted in an Initial Public Offering (IPO) to curb grey market activity, chairperson Madhabi Puri Buch said on Tuesday. The chief of the capital markets regulator also announced that the top two proxy advisory firms are on the verge of launching a portal which will be a repository of related party transactions and will be useful in judging the governance standards in a company for any stakeholder. It can be noted that many IPOs in the recent past have seen very high subscriptions, and many of the issuances have also made huge listing-day gains which result in the grey market activity of passing on allotted shares. Buch, an i-banker turned markets regulator, reminisced that during her banking days, this grey market activity used to be called "curb trading". "We feel that if anyway investors want to do that, why not give them that opportunity in a proper regulated way?" Buch said, addressi

Sebi proposes changes to net asset value calculation for overnight schemes

NAV represents the market value of an investor's mutual fund holdings and is a key metric for understanding the worth of their investments

Sebi approves 6 IPOs; Kalyan Jewellers shares jump; Laxmi Dental gains 30%

Carlyle-backed Hexaware Technologies plans to raise Rs 9,950 crore through a pure offer for sale (OFS), with shares being sold by CA Magnum Holdings

Market regulator Sebi asks MFs to disclose information ratio of schemes

To bring more transparency in disclosures made by AMCs and aid better decision-making by investors, Sebi on Friday directed mutual funds to disclose the information ratio (IR) of a scheme along with performance disclosure. Further, disclosure of IR, a financial metric to measure the Risk-adjusted Return (RAR) of a scheme portfolio, will be applicable only for equity-oriented schemes. "Considering the significance of volatility of performance in determining the suitability of MF schemes, the information ratio is an established financial ratio to measure the RAR of any scheme portfolio. "It is often used as a measure of a portfolio manager's level of skill and ability to generate excess returns, relative to a benchmark and also attempts to identify the consistency of the performance by incorporating standard deviation/risk factor into the calculation," Sebi said. In a circular, Sebi has asked mutual funds to disclose the information ratio of a scheme portfolio on their website, along

Ten entities settle Sebi case for Rs 5.96 crore over trading violations

A total of 10 entities have settled a case of trading using non-public information from guest experts on Zee Business Channel with markets regulator Sebi after paying a total of Rs 5.96 crore towards the settlement amount. Additionally, the settlement includes a six-month voluntary debarment period from buying, selling, or dealing in securities. The applicants have settled the case with Sebi without admitting or denying the allegations through a settlement term. The settlement resolves the case, and no further action will be taken against the applicants unless they breach the terms of the settlement. The case involved stock recommendations given by guest experts on the Zee Business Channel, and Sebi's investigation found that 15 entities were allegedly involved in trading using non-public information from these recommendations between February 2022 and December 2022. In its investigation, Sebi found that 15 entities were allegedly involved in trading using non-public information f

Nuvama positive on NSE, BSE growth despite volume dip in F&O segment

Sebi's proposal on dilution of stake in clearing corporations to hit financials, says report