Page 17 - Sebi Norms

Stock exchanges roll back direct payout of securities to client accounts

Faced 'slight delays' in some cases, claim exchanges in a joint statement

Sebi extends deadline till Nov 26 for comments on proposed SDP recognition

Markets regulator Sebi on Tuesday extended the deadline for public comments till November 26 on the proposal concerning requirements for recognition as specified digital platforms (SDPs). Earlier, the comments from the public were sought till November 12. "Based on the representations received by Sebi from some of the entities/organisations, it has been decided to extend the timeline to submit the public comments on the consultation paper till November 26, 2024," the regulator said in a statement. In its consultation paper, Sebi proposed requirements for recognition as specified digital platforms whereby such platforms should proactively prevent fraud, impersonation, unauthorised claims, and unregistered entities from operating. The regulator suggested that specified digital platforms use artificial intelligence or machine learning (AI/ML) tools to identify content or ads related to securities, ensuring the entity is Sebi-registered or permitted, no unauthorised advice, ...

Sebi orders attachment of bank accounts of Venugopal Dhoot, Electroparts

Capital markets regulator Sebi has ordered the attachment of bank accounts and shares and mutual fund holdings of Venugopal Dhoot and Videocon industries' promoter entity Electroparts (India) to recover dues of around Rs 68.5 lakh. Before this, the regulator on September 30 sent a notice to Videocon Industries' promoter entity Electroparts (India) Pvt Ltd and its Chief Executive Officer (CEO) Venugopal Dhoot and asked them to pay dues within 15 days in a case on insider trading activities in the shares of Videocon Industries. The attachment notice came after Dhoot and Electroparts (India) failed to pay the fine imposed on them. In two attachment orders passed on Friday, the markets watchdog has ordered the attachment of bank, demat accounts and mutual fund folios of Venugopal Dhoot and Electroparts (India) to recover the pending dues. Going by the notices, dues of Rs 68.52 lakh were pending with Dhoot and Electroparts (India), which includes interest and recovery costs. As per the

Sebi looks to expand scope of unpublished price-sensitive information

To enhance transparency in market disclosures, Sebi is looking to broaden the scope of Unpublished Price Sensitive Information (UPSI) by including proposed fundraising activities, restructuring plans, and one-time bank settlements. In its consultation paper, Sebi has proposed that only agreements, including shareholder, joint venture and family settlement, that affect the management and control of the firm and are known to the firm should be considered price-sensitive and included in the illustrative list of events under the definition of UPSI. Additionally, key developments in corporate insolvency proceedings, such as initiation or approval of resolution plans by the tribunal, should be disclosed as potentially price-sensitive. If a forensic audit is launched or concluded for issues like fund misappropriation or financial misstatements, it should be disclosed as price-sensitive. The proposed changes to Sebi's definition of UPSI are aimed at increasing regulatory clarity and ...

BS BFSI Summit: Sebi WTM Ananth Narayan for strengthening of MII ecosystem

Sebi whole-time member says regulator to float consultation paper to consider demerger of equity clearing corporations from exchanges

Sebi mulls allaying concerns on 'skin in the game' rule for MF employees

To address concerns about the "skin in the game" rule for designated employees of mutual funds, Sebi on Thursday proposed reducing the mandatory investment percentage, applying it based on salary brackets, and excluding non-cash components like ESOPs from the minimum investment calculation. The proposals aimed at easing compliance, particularly for employees with lower CTCs and those in operational roles. At present, AMC employees such as the CEO, CIO, and fund managers are required to invest 20 per cent of their annual salary and perks in the mutual funds they manage. This amount is locked in for three years. In its consultation paper, Sebi has proposed that the "minimum mandatory investment amount may be reduced from 20 per cent and made applicable slab-wise, based on the CTC of the employees". Employees earning below Rs 25 lakh would have no mandatory investment, while those with a CTC between Rs 25-50 lakh would invest 10 per cent, those between Rs 50 lakh-1 crore would invest

Sebi asks 5 entities to pay Rs 130 cr in Reliance Home fund diversion case

Sebi on Monday asked five entities, including Netizen Engineering and Citi Securities and Financial Services, to pay Rs 130 crore for the illegal diversion of funds from Reliance Home Finance Ltd. The regulator has warned these entities to attach assets and bank accounts if they fail to make the payment within 15 days. Those who have sent notices are Netizen Engineering Pvt Ltd, Gamesa Investment Management Pvt Ltd, Vinayak Ventures Pvt Ltd, Deep Industrial Finance Ltd and Citi Securities and Financial Services Pvt Ltd. The demand notices came after these entities failed to pay the fine imposed on them by the Securities and Exchange Board of India (Sebi) in August. In five separate notices, the markets watchdog directed these five entities to pay Rs 26 crore each which includes interest and recovery costs within 15 days. In the event of non-payment of dues, the market regulator will recover the amount by attaching and selling the moveable and immovable property of these entities.

Sebi mulls separation of non-regulated activities for debenture trustees

Sebi on Monday proposed that debenture trustees separate non-market watchdog-regulated activities into a new legal entity and define "cross-default" to clarify their roles in shared security interests. Additionally, the new provisions have been proposed to outline debenture trustees' (DT) rights and responsibilities, aligning with their fiduciary duties and obligations under Sebi's Listing Obligations and Disclosure Requirements (LODR) Regulations. These changes aim to support timely fulfillment of DT duties. The regulator has proposed changes to how the Recovery Expense Fund is used, which supports debenture recovery processes and suggested to standardize the format of Debenture Trust Deeds to streamline documentation. These proposals are aimed at improving ease of doing business for debenture trustees. In its consultation paper, the regulator proposed that DTs should hive off non-Sebi-regulated activities into a new legal entity, which cannot use the DT's brand name after a one-

Sebi slaps Rs 50 lakh fine on Lulla for violating mkt norms in Eros matter

Capital markets regulator Sebi has slapped a fine of Rs 50 lakh on promoter and former MD of Eros International Media Sunil Arjan Lulla in a case related to the violation of regulatory norms. In June 2023, Sebi passed an interim order, wherein the regulator prohibited five entities, including Eros International and its Managing Director (MD) Sunil Lulla from securities markets in a case on the possible diversion of funds based on prima facie findings. The regulator also barred Sunil Lulla from holding the position of a director or a key managerial personnel in any listed company, including Eros or its subsidiaries or any Sebi-registered intermediary until further orders. Thereafter, Sunil Lulla appealed before the Securities Appellate Tribunal (SAT) against Sebi's interim order. However, the tribunal upheld the order of the regulator in August 2023. In October 2023, the regulator confirmed the ban against them. The markets watchdog observed that Sunil Lulla had failed to comply wi

Sebi proposes Rs 1 cr minimum investment, demat form for securitisation

Markets regulator Sebi has proposed a minimum ticket size or investment threshold of Rs 1 crore for the RBI-regulated originators and unregulated entities engaged in securitisation activities. The proposal also introduced limitations on the number of investors in private placements, allowing securitized debt instruments (SDIs) issued privately to be offered to a maximum of 200 investors. If this limit is exceeded, the issuance must be classified as a public issue. Public offers should remain open for a minimum of three days and a maximum of 10 days, with advertisement requirements aligned with Sebi's regulations for non-convertible securities. Additionally, the regulator has suggested that all securitized debt instruments should be issued and transferred exclusively in demat form. SDIs are financial products created by pooling together various types of debt -- such as loans, mortgages, or receivables -- and then selling them as securities to investors. This process, known as ...

UPL, promoter Jaidev Shroff pay Rs 20.2 cr to settle case with Sebi

Agrochemical company UPL (formerly United Phosphorus Ltd) and its promoter and Chairperson Jaidev Rajnikant Shroff have settled a case related to an alleged violation of regulatory norms with capital markets regulator Sebi after paying Rs 20.2 crore towards settlement charges. The settlement order came after the applicants -- UPL and Jaidev Rajnikant Shroff -- proposed to settle the instant proceeding through a settlement order "without admitting or denying the findings of fact and conclusions of law". "In terms of the settlement regulations, it is hereby ordered that the instant proceeding initiated against the applicants, vide show cause notice dated February 28, 2024, is disposed of," Sebi's Chief General Manager Anitha Anoop said in the order on October 30. Pursuant to receipt of an emailed query from a media outlet, Sebi undertook a suo-moto investigation in the affairs of certain companies, including UPL (Applicant No. 1) and its promoters to ascertain whether there was any ..

Sebi proposes doubling threshold for identifying HVDLEs to Rs 1,000 cr

Markets regulator Sebi has proposed raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to Rs 1,000 crore from Rs 500 crore at present to reduce compliance burdens. Currently, an entity having outstanding value of listed non-convertible debt securities of Rs 500 crore and above are referred to as 'High Value Debt Listed Entities'. In its consultation paper, Sebi has proposed introducing a sunset clause that would end governance obligations if an HVDLE's outstanding debt falls below the threshold for a specified period, providing more flexibility. It has suggested a dedicated chapter within LODR (Listing Obligations and Disclosure Requirements) Regulations focused solely on corporate governance norms for HVDLEs distinguishing them from equity-listed entities. Also, it has been proposed filing of governance reports in XBRL format, voluntary Business Responsibility and Sustainability Reporting (BRSR), and harmonise HVDLE reporting with equity-listed ...

Sebi proposes 30-day deadline for mutual fund deployment of NFO proceeds

Move to address concerns by AMCs losing first-mover advantage due to public disclosure

Market regulator Sebi mulls tweaks to mutual fund NFO filing process

Move to address concerns around AMCs losing first-mover advantage due to public disclosure

Sebi proposes allowing shared contact details for non-individual clients

To enhance ease of compliance, Sebi on Monday proposed broadening its guidelines on shared contact details by allowing non-individual clients, such as HUFs, partnerships, trusts, and corporates, to use the same mobile number or email address under exceptional circumstances. Currently, this exception applies only to individual clients within a family. "Under exceptional circumstances, the stock broker may, at the specific written request of a client, upload the same mobile number/email address for more than one client provided such client belong to one family (in case of individual clients) or such client is the authorised person of an HUF, Corporate, Partnership or Trust (in case of non-individual clients)," Sebi said in its consultation paper. Under the current rule, stock brokers are required to upload certain details of their clients, including a separate mobile number and email address for each client. However, under exceptional circumstances, the stock broker may upload the sa

More jobs, investment: Space industry welcomes Rs 1K crore VC fund

Industry welcomes move to expand the space economy to $44 billion by 2033

Research report of analysts not an ad unless related to promotion: Sebi

Markets regulator Sebi on Thursday clarified that research reports and recommendations of research analysts (RAs) are not considered advertisements unless anything contained in such reports is in the nature of promotion of products or services offered by them. This came after the Securities and Exchange Board of India (Sebi) received certain queries concerning the applicability of provisions of advertisement code on a research report issued by an RA. In its circular, Sebi said that the forms of communications, to which the advertisement code shall be applicable include pamphlets, circulars, brochures, notices or any other literature, document, information or material published, or designed for use in any publication or displays (such as newspaper, magazine, sign boards/hoardings at any location), in any electronic, wired or wireless communication or over any other audio-visual form of communication (such as television, tape recordings, motion pictures) or in any other manner ...

Market Today: HUL Q2, Gold at record, IMF on India, Waaree IPO last day

On October 22, foreign institutional investors continued their selling spree, offloading shares worth Rs 3,978.61 crore, while domestic institutional investors bought shares totaling Rs 5,869.06 crore

Sebi issues framework on ties between intermediaries, unauthorised advisors

Markets regulator Sebi on Tuesday came out with a framework on associations between market intermediaries and unauthorised financial advisors, especially with regard to specified digital platforms. This came after Sebi in August amended rules aimed at regulating associations between intermediaries, like stock exchanges, clearing corporations and depositories, and entities providing financial advice or making performance claims. The rule restrains intermediaries, their agents, or associated persons from having direct or indirect ties with any entity that provides investment advice or recommendations without being registered or permitted by Sebi or makes performance or return-related claims unless specifically authorised by the regulator to do so. However, if these interactions occur through specified digital platforms, they will not be subject to these restrictions. In its circular on Tuesday, Sebi said the framework allows associations through "specified digital platforms", which t

F&O trading can't be a pastime, investors need to be serious: Sebi member

India cannot afford to make futures and options trading into a 'national pastime', Sebi whole-time member Ashwani Bhatia said on Tuesday, urging investors to be more serious. Speaking at an event organized by Morningstar here, Bhatia rued that investors are protesting against the latest moves to curb activity in the F&O Segment initiated by Sebi. The markets watchdog's study has revealed that 93 per cent of the trades result in a loss for retail investors, and Bhatia said it is the institutional investors who are making money in the process. "F&O cannot be and should not be a national pastime which actually means that savings of retail participants move into the pockets of institutional hands," he said, asking investors to do "serious investing". He said India is home to more than half of the global derivative volumes, making it the largest base for such bets globally, and made it clear that this is a "crown we do not wish to wear". "... uneasy lies the head that wears a ...