Page 14 - Sebi Norms

Sebi disposes of showcause notice to Karvy Capital in AIF violation case

Capital markets regulator Sebi has disposed of a show cause notice issued to Karvy Capital Ltd and its key management personnel after finding no violations of alternative investment funds (AIF) rules. The order came after the Securities and Exchange Board of India (Sebi) examined the matter of Karvy Capital Alternative Investment Trust, and KCAP Alternative Investment Fund, to ascertain satisfaction of 'fit and proper' criteria by Karvy group AIFs registered with Sebi. Thereafter, Sebi observed certain non-compliances and accordingly initiated adjudication proceedings against Karvy Capital Ltd (KCL) and key management personnel -- Ajit Bhaskaran, Hitungshu Debnath (former director & COO), and K P Jeewan -- for the alleged violations of AIF norms. Thereafter, Sebi issued a show cause notice (SCN) to the noticees (KCL, Bhaskaran, Debnath and Jeewan) on June 7, 2024 for the alleged violations. In an order passed on January 2, Sebi said Karvy Capital Alternative Investment Trust and ..

Kirloskars challenge Sebi letter asking family settlement deed disclosure

Four Kirloskar companies on Saturday said they have filed an appeal before the Securities Appellate Tribunal challenging the SEBI letter asking them to disclose the deed of family settlement that was signed by members of the Kirloskar family on September 11, 2009. In a joint statement, the Kirloskar companies -- Kirloskar Ferrous Industries Ltd (KFIL), Kirloskar Industries Ltd (KIL), Kirloskar Pneumatic Company Ltd, Kirloskar Oil Engines Ltd -- said they have filed the appeal before SAT challenging the SEBI letter dated December 30, 2024 wherein the market regulator advised them to disclose the Deed of Family Settlement (DDS). On December 31, these companies stated that they were preparing to legally challenge the letter by SEBI. The markets watchdog in its letter stated that "since the DFS is subsisting in nature, indirectly creates a restriction on the listed entities managed/promoted by the parties to such DFS, warrants disclosure, regardless of whether such listed entity is a ..

Sebi launches free tools on site, Saarthi App to boost investor awareness

Capital markets regulator Sebi on Thursday is offering a range of free tools and resources on its investor website and the 'Saarthi' App as part of its investor education initiatives. It aims to empowering both prospective and existing investors, these platforms provide guidance on making informed investment decisions. "The Securities and Exchange Board of India (Sebi), as part of its mandate to protect the interests of investors in the securities market, has provided a comprehensive suite of tools and resources on its official investor website to enhance investor awareness and education," the regulator said in a statement. These tools and resources aim to help both prospective and existing investors navigate their investment journey, it added. The Sebi investor website features a curated repository of videos sourced from stock exchanges, depositories, and institutions like the Association of Mutual Funds in India (AMFI) and the National Centre for Financial Education ...

Kirloskars' to challenge Sebi for seeking disclosure of family settlement

Four Kirloskar companies on Tuesday said they are preparing to legally challenge a letter by markets regulator SEBI asking them to disclose the deed of family settlement that was signed by members of the Kirloskar family on September 11, 2009. In separate regulatory filings, Kirloskar Ferrous Industries Ltd (KFIL), Kirloskar Industries Ltd (KIL), Kirloskar Pneumatic Company Ltd and Kirloskar Oil Engines Ltd maintained they are not bound by deed of family settlement (DFS) nor does it have any impact or create any restriction or liability on them. SEBI in a letter dated December 30, 2024 advised the companies to disclose the DFS, entered into amongst the members of the Kirloskar family in their personal capacity, under the SEBI listing obligations and disclosure requirements regulations, they said. Kirloskar siblings, with Sanjay (Kirloskar Brothers Ltd Chairman and Managing Director) on one side and Atul and Rahul on the other, have been in a feud since 2016 over the DFS for the asse

Sebi issues clarification on cybersecurity norms for regulated entities

Sebi on Tuesday issued clarifications to its Cybersecurity and Cyber Resilience Framework for regulated entities, providing regulatory forbearance and extending compliance deadlines for select categories. The clarification came after Sebi addressed queries from stakeholders regarding the framework introduced in August this year. The framework is designed to ensure that Sebi-regulated entities (REs) maintain robust cybersecurity posture, remain equipped with adequate cyber resiliency measures and can withstand, respond to, and recover from cyber threats, effectively. "With regard to the compliance requirements, which are effective from January 1, 2025, under the framework, regulatory forbearance is provided till March 31, 2025, Sebi said in a circular. During this period, the entities will not face penalties for non-compliance, provided they demonstrate progress in implementing the framework, it added. Further, the compliance deadline has been extended to April 1, 2025, for KYC ...

Sebi allows subscription to NCS during trading window closure period

Capital markets regulator Sebi on Monday permitted subscription to non-convertible securities (NCS) during the trading window closure period, marking a significant update to its insider trading norms. This latest move enables the market participants to subscribe to non-convertible securities without being constrained by the trading window restrictions. However, the trading window restrictions will not apply with respect to transactions, such as acquisition by conversion of warrants or debentures, subscribing to rights issues, further public issues, preferential allotment or buy-back and open offers. Sebi noted that earlier exemptions, extended through a 2020 circular, included rights entitlements and offer-for-sale (OFS) transactions. "It has been decided that in addition to the transactions mentioned in PIT (Prohibition of Insider Trading) regulations, the trading window restrictions shall also not apply to subscription to the issue of non-convertible securities, carried out in ..

Sebi to auction 23 properties of 9 firms in Feb to recoup illicit funds

Sebi on Monday said it has scheduled an auction of 23 properties belonging to nine firms, such as Tower Infotech and Vibgyor Group of Companies in February, aimed to recoup funds illicitly collected from investors. Additionally, GBC Industrial Corporation, Waris Group, Pincon Group, Kolkata Weir Industries Ltd (KWIL), Annex Infrastructure India, I-core Group and MPS Group were the other firms whose properties will also be auctioned. The process for the sale of the companies' assets has been initiated by the markets watchdog following the orders of Calcutta High Court. The properties include plots, apartments and buildings located in West Bengal. It will be auctioned at a reserve price of Rs 55 crore, according to a notice issued by the Securities and Exchange Board of India (Sebi). Justice Sailendra Prasad Talukdar has been appointed as the one-man committee for liquidating the assets of the firm and repaying the investors. The move is part of Sebi's effort to recover investors' ..

SBI-SG Global pays Rs 29.25 lakh, settles FPI violation case with Sebi

SBI-SG Global Securities Services on Friday settled a case related to an alleged violation of FPI (foreign portfolio investors) rules and other regulatory norms with Sebi by paying Rs 29.25 lakh towards settlement charges. SBI-SG Global Securities Services Pvt Ltd (applicant) is a Sebi-registered designated depository participant (DDP). The order came after SBI-SG Global Securities Services submitted a settlement application, requesting for settlement of the adjudication proceedings under the Sebi's settlement regulations. "In view of the acceptance and the compliance of the settlement terms by the applicant, the instant adjudication proceedings initiated against the applicant (SBI-SG Global Securities Services) vide show cause notice dated May 08, 2024, is disposed of in terms of the settlement regulations," Sebi's chief general manager and adjudicating officer N Hariharan said in the order. The Securities and Exchange Board of India (Sebi) had undertaken an inspection of the SBI-

Sebi clarifies norms on transfer of shareholding in registered entities

Transfer of shareholding by way of transmission to an immediate relative will not result in a change in control

Sebi fines Jaiprakash Power for misrepresenting co's financial statements

Markets regulator Sebi on Friday imposed a penalty totalling Rs 54 lakh on Jaiprakash Power Ventures, its MD and CEO Suren Jain and other top officials for misrepresenting the company's financial statements. Others who have been penalised by Sebi are company's chairperson Manoj Gaur, executive directors -- Sunil Kumar Sharma and Praveen Kumar Singh -- chief financial officer R K Porwal and former whole-time member M K V Rama Rao. They have been directed to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in its 89-page order. This came after the regulator conducted an investigation in the matter of Jaiprakash Power Ventures Ltd (JPVL), a part of the Jaypee Group of companies, to ascertain the possible violations of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and LODR (Listing Obligations and Disclosure Requirements) rules. In its probe, Sebi found that the company overstated its books of accounts by not adopting the correct ...

ICEX formally exits bourse biz as Sebi notifies withdrawal of recognition

Market regulator Sebi has notified that the recognition granted to the Indian Commodity Exchange Ltd (ICEX) has been withdrawn, formally signifying its exit from the bourse business. This came after the regulator on December 11 allowed ICEX to exit the exchange space after its recognition was withdrawn over two years ago. This followed after the exchange fulfilled regulatory requirements. "The Securities and Exchange Board of India (Sebi) hereby notifies that, the recognition granted to the Indian Commodity Exchange Ltd stands withdrawn with effect from the date of publication of this notification in the official gazette," Sebi said in its notification dated December 24. In its exit order, Sebi stated it reviewed ICEX's valuation report, compliance submissions and undertakings. Additionally, the regulator directed ICEX to comply with its tax obligations under the Income Tax Act, 1961; change its name and not to use the expression "stock exchange" and maintain a database of all ...

Derivatives volumes crash 37% in Dec as Sebi tightens trading norms

Stricter trading norms helps cool off speculative activity

Say no to NFOs, buy direct plans and seek suggestions from Sebi RIAs

Sebi's new rule is a positive step towards investor protection. It will reduce mis-selling by aligning distributor incentives with investor interests and discourage unnecessary portfolio churn

Kalyani Investment pays Sebi Rs 1.12 cr to settle disclosure violation case

Kalyani Investment Company, one of the promoter group entity of Bharat Forge, has settled a case with Sebi about the alleged violation of disclosure norms after paying Rs 1.12 crore towards the settlement fee. Kalyani Investment Company Ltd (KICL), a listed entity, is part of the over USD 2.5 billion Kalyani Group. The order came after the applicant (Kalyani Investment Company) proposed to settle the instant proceedings initiated against it, without "admitting or denying the facts and conclusions of law", under the Sebi's settlement regulations. "In view of the acceptance of the settlement terms and the receipt of the settlement amount, the adjudication proceedings initiated against the applicant (Kalyani Investment Company) vide show cause notice (SCN) dated March 19, 2024, is disposed of," Sebi's adjudicating officer Amit Kapoor said in the settlement order on Friday. The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against the applicant for th

Two individuals settle insider trading case with Sebi paying Rs 74 lakh

Two individuals, including a former employee of Deloitte India, on Monday settled with capital markets regulator Sebi a case pertaining to the alleged violation of insider trading rules by paying Rs 74 lakh towards settlement fee. Nimai Parekh and Rahil Dalal (applicants) had proposed to settle the matter by neither "admitting nor denying the findings of fact and conclusions of law", Sebi said. "In exercise of the powers...and in terms of the settlement regulations, it is hereby ordered that any proceedings that may be initiated for the violations are settled in respect of the applicants," Sebi's whole-time member Kamlesh C Varshney said in the settlement order. Sebi conducted an investigation in the scrips of HDFC Ltd and HDFC Bank Ltd, so as to ascertain whether any suspected entities on the basis of information relating to amalgamation/merger, had traded in the scrips, and thereby violated PIT (Prohibition of Insider Trading) rules. The investigation period was taken from Novemb

Sebi punctures Bharat Global's 10,000% stock rally over fake disclosures

Shares of the Gujarat-headquartered company surged over 10,000 per cent in the 12-month period ending November as it announced forays into market-fancied sectors

Sebi directs MIIs to adopt uniform policy on data sharing for research

These market infrastructure institutions (MIIs) have been asked to segregate such data into two baskets-one that can be shared with the public and the second that cannot be made public

Algo trading: Understand risks, have realistic return expectations

The circular is expected to provide retail investors access to registered and approved algos, ensuring their interests are protected

Sebi introduces new measures to curb misleading investment return claims

Sebi announced that a credit rating agency would act as the verification agency, while a stock exchange will serve as the data centre

Sebi defers ESG disclosure deadline under BRSR framework by 1 yr to FY26

Markets regulator Sebi has decided to defer the ESG disclosure deadline for value chain partners of listed companies by one year until FY26, giving more time to them to comply with the Business Responsibility and Sustainability Reporting (BRSR) requirements. Until then, environmental, social and governance (ESG) reporting will remain voluntary instead of the current "comply-and-explain" approach. The proposal, approved by Sebi's board on Wednesday, is aimed at enhancing ease of doing business for listed companies and their value chain partners in meeting BRSR requirement. The Sebi's board approved several relaxations and updates for ESG disclosures. These include "deferring ESG disclosures for value chain", as well as "assessment or assurance" thereof, by one year. Hence, ESG disclosures for value chain shall apply from FY26 (as against the current requirement of FY 2024-25) and "assessment or assurance" thereof shall be applicable from FY 2026-27 (as against the current requiremen