Page 13 - Sebi Norms

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

Sebi issues warning to J&K Bank for delayed disclosure of MD appointment

Capital markets regulator Sebi has issued an administrative warning letter to J&K Bank for regulatory non-compliance with regard to disclosure of appointment of its MD & CEO. The disclosure was made on December 25, 2024 at 4:53 PM with a delay of 1 hour 40 minutes beyond the stipulated timeline of 24 hours from the time for occurrence of the event (RBI's approval) i.e. December 24, 2024 at 3:14 PM, Sebi's letter posted by J&K Bank on stock exchanges on Tuesday said. "The event relating to appointment of MD & CEO is considered significant because of the surge in price as well as volume movement of the bank's scrip, traded on the platform of the stock exchanges, between the date of occurrence of the event i.e. December 24, 2024 and the next trading day i.e. December 26, 2024," the letter said. The bank had made a disclosure on December 25, 2024 (trading holiday) regarding appointment of Amitava Chatterjee as Managing Director and Chief Executive Officer for a period of ..

Sebi may mandate issuance of new securities in demat form after stock split

To encourage demat holding of securities, Sebi on Tuesday proposed mandating listed companies to issue securities only in demat form following stock split, consolidation of face value of shares, and merger or demerger. In case an investor does not have a demat account, the issuer companies will be required to open a separate demat account with a suitable ledger of ownership or suspense escrow account for dealing with such securities, Sebi proposed in its consultation paper. Dematerialisation of securities has several benefits, including reduction of frauds and forgery, elimination of loss and damage of securities, faster and more efficient transfers, improved transparency and regulatory oversight, mitigation of legal disputes, cost reduction of investors and companies, etc. Considering this, while Sebi is encouraging holding of securities in demat form by the investors, at present a few investors hold securities in physical form. Although it is legally permissible to hold securitie

Sebi 'watchful' of manipulative practices, trades in index heavyweights

Whole-time member Ananth Narayan addressed concerns of 'pump & dump'

Ease of doing business: Sebi mulling new metrics to measure risk in F&O

New steps to ensure risks in both cash market and derivatives are comparable, curb any possible manipulation

Nusli Wadia, sons, others settle disclosure lapses case with Sebi

Bombay Burmah Trading Corporation, its promoters including Nusli Wadia, his sons Ness and Jehangir, and others on Friday settled a disclosure lapses case with markets regulator Sebi after paying Rs 2.12 crore towards settlement amount. In all, a total of 18 entities settled the case pertaining to flouting various provisions of securities market norms. The order came after the entities proposed to settle the violations "without admitting or denying the findings" by paying settlement amounts. "It is hereby ordered that any proceedings that may be initiated for the violations ... are settled in respect of the applicants," Sebi said in its settlement order. As per the order, the entities allegedly failed to make timely disclosures of shareholding changes and related party information; and failed to comply with accounting standards and regulations on related party disclosures as required under SAST (Substantial Acquisitions of Shares and Takeovers) norms and insider trading rules. Also

Broker claims 1,103 dependent children accounts; Sebi slaps Rs 9 lakh fine

Sebi had carried out a detailed and thematic inspection of the Stocking Services Limited with the theme 'Multiple UCCs mapped to common email ID or common mobile number'

Sebi warns Ola Electric over disclosure norms violation, its shares fall 4%

The company's MD had disclosed expansion plans on social media before information on stock exchanges

Sebi issues new guidelines for research analysts, investment advisers

Markets regulator Sebi on Wednesday said it has issued guidelines on the regulatory framework for research analysts and investment advisers to bolster investor protection and ensure transparency. These guidelines came after the regulator notified the research analyst (RA) rules and investment adviser (IA) norms in December last year. The new norms encompass qualification standards, fee structures, deposit requirements, and client segregation protocols. The regulator introduced fresh compliance mandates, particularly for entities utilising artificial intelligence (AI) tools in their services. Under the revised framework, Sebi said research analysts are required to maintain a deposit based on their client base, ranging from Rs 1 lakh for up to 150 clients to Rs 10 lakh for over 1,000 clients. These deposits aim to provide additional security for investors. Also, investment advisers are mandated to follow a graded deposit system tied to client numbers. Existing IAs must comply with

Realtor Casagrand Premier Builder gets Sebi nod for Rs 1,100 crore IPO

The IPO, with a face value of Rs 2 per equity share, comprises a fresh issue of up to Rs 1,000 crore and an offer for sale of up to Rs 100 crore by the promoters

Sebi asks companies to disclose whistleblower complaints in IPO filings

Sebi mandates that companies disclose any whistleblower complaints related to promoters in their IPO documents, aiming for increased transparency after recent interventions in IPOs