Page 19 - Sebi Norms

Market regulator Sebi slaps Rs 12 lakh fine on NSE Data And Analytics

Markets regulator Sebi on Monday imposed a penalty of Rs 12 lakh on NSE Data And Analytics Ltd for its failure to segregate IT infrastructures and manpower between itself and its parent firm National Stock Exchange (NSE). It has been directed to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in its order. In its order, Sebi noted irregularities with respect to the backup of records and details of the Business Continuity Plan/Disaster Recovery policy, delay in sending acknowledgement letters to investors, irregularities with respect to system audit reports and cyber security audit framework and failure to validate KYC records. Additionally, Sebi said, "There was no segregation of any IT infrastructures (server, network, data centres and IT security), along with the IT manpower, responsible for handling server management, network, data centres and IT security between the noticee (NSE Data And Analytics) and its parent organisation (NSE)". NSE Data

Sebi levies Rs 10 lakh fine on Anand Rathi for flouting stock brokers rules

Capital markets regulator Sebi on Monday imposed a fine of Rs 10 lakh on brokerage firm Anand Rathi Share and Stock Broker for flouting stock brokers' rules and other norms. The order came after the Securities and Exchange Board of India (Sebi) conducted a comprehensive inspection of Anand Rathi Share and Stock Broker Ltd (noticee), a Sebi-registered stock broker of BSE, NSE, MCX and NCDEX, for the period from April 2022 to October 2023. Based on the findings of the inspection, the regulator found certain alleged non-compliances of Stock Brokers regulations and circulars issued by Sebi, NSE and BSE. In its order, the regulator observed that in 55 instances, there was a short collection of margin/ MTM amounting to Rs 33.16 lakh. However, Anand Rathi submitted that there was no margin shortfall, and they are adequately collecting margins from the clients and adhering to the regulatory guidelines. Further, no supporting documents are submitted by the brokerage firm, therefore, the ..

Sebi board meeting today: F&O rules, Hindenburg claims, employees complaint

Sebi board meeting today, Sept 30, will be the first meeting since allegations were pressed against Sebi Chairperson Madhabi Puri Buch by Hindenburg Research. Here's what to expect from the meeting

Sebi amends rules, introduces fixed price process for voluntary delisting

Markets regulator Sebi has notified rules allowing companies to delist shares through a fixed price mechanism as an alternative to the reverse book building process, a move aimed at facilitating ease of doing business for listed firms. Under the Reverse Book Building (RBB) process, a firm planning to delist its shares from the stock exchange needs to initiate the process by making a public announcement. The rules mandated a minimum floor price for the delisting offer. Further, shareholders of the company place offers to sell their securities back to the promoters or large shareholders under the process. In its notification on Wednesday, Sebi introduced the fixed price process as an alternative to the RBB process for delisting of companies whose shares are frequently traded. The fixed price offered by an acquirer would be at least 15 per cent premium over the floor price. Additionally, the regulator has provided modification of the counter-offer mechanism in case of delisting throu

Become a voice of investors: Sebi chairperson Madhabi Puri Buch to MFs

Madhabi Puri Buch calls for greater participation in voting on corporate resolutions; advocates healthier growth in the corporate bond market

New asset class may take wing; decision likely at Sebi meeting on Sep 30

Board meeting on Sep 30, first since conflict of interest allegations against chairperson

India's retail derivatives traders lost Rs 1.8 trn in three years: Sebi

In fiscal year 2024, 91.1% of retail traders made losses while trading in derivatives, with gross losses totalling 524 billion rupees, the study showed

Sebi amends rules to streamline public issuance of debt securities

Markets regulator Sebi has amended rules to streamline the process for public issuance of debt securities aimed at providing faster access to funds for such issuers. Under the amended rules, Sebi has reduced the period for seeking public comments on the draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers. "The issuers whose specified securities are listed on a recognised stock exchange having nationwide trading terminals shall post the draft offer document filed with stock exchange(s) for one day immediately after the date of filing the draft offer document with stock exchange(s)," the regulator said in a notification. Also, the minimum subscription period has been cut from 3 to 2 working days. Further, in case of revision in the price band or yield, the bidding period disclosed in the offer documents, can be extended by one working day instead of three working days. The new rules are aimed at ...

Sebi drops charges against NSE, ex-top executives in co-location case

Cites lack of evidence to establish collusion, connivance with OPG Securities

Sebi disposes of case against NSE, its former employees in co-location case

Sebi on Friday dismissed regulatory violation charges against the NSE and its seven former employees, including Chitra Ramkrishna and Ravi Narain, in the matter of the co-location facility, citing the absence of sufficient evidence. "Due to the absence of sufficient material/evidence/objective facts on record in this case, the test of preponderance of probability' fails to produce enough justification for the establishment of collusion/connivance between OPG and its directors with Noticees (NSE and its seven employees)," Seb said in its 83-page order. Apart from NSE, Ramkrishna and Narain, Sebi has dropped charges against Anand Subramanian, Ravindra Apte, Umesh Jain, Mahesh Soparkar and Deviprasad Singh. The case relates to the alleged preferential access given to certain broking firms in the form of 'dark fibre' at the National Stock Exchange (NSE) to connect across the colocation facilities before other members. The dark fibre or unlit fibre, with respect to network connectivity,

Sebi launches centralized fee collection for investment advisers, analysts

Market regulator Sebi on Friday announced rolling out a new system -- Centralized Fee Collection Mechanism -- to facilitate collection of fees by Investment Advisers (IAs) and Research Analysts (RAs) from their clients on an optional basis. Under this mechanism, clients will pay fees to IAs/RAs, through a designated platform or portal administered by a recognised Administration and Supervisory Body (ASB), the regulator said in a circular. The move came in response to the growing interest in the securities market and the need for greater transparency in fee payments. The markets regulator said that BSE would specify the operational framework for the mechanism on or before September 23 and make the mechanism operational from October 1. The mechanism has been co-created by BSE Ltd with the help of various stakeholders. While using this mechanism is optional, Sebi asked ASB to take steps to encourage clients and the registered IAs and RAs to avail the services of this mechanism. Fur

Sebi asks exchanges, market infra institutions to ensure minimal data loss

Markets regulator Sebi on Thursday asked stock exchanges and other market infrastructure institutions (MIIs) to ensure that the Recovery Point Objective (RPO) -- the maximum period for which data loss is tolerable due to a technical glitch or disruptions -- is near zero. In market parlance, a recovery point objective (RPO) of near zero means that an institution should aim for almost 100 per cent availability of their data and applications. Further, MIIs need to have a documented methodology for data reconciliation when resuming operations from Disaster Recovery Site (DRS) or any other site as applicable, Sebi said in a circular. Additionally, Sebi has asked MIIs -- stock exchanges, clearing corporations and depositories- to collaborate in developing a standardized definition of 'near zero data loss' and submit the same to it after taking approval from their respective Standing Committee on Technology. In addition to a Disaster Recovery Site, all stock exchanges, clearing ...

Sebi tweaks margin trading facilities' framework to ease collateral burden

To promote ease of doing business, markets regulator Sebi on Wednesday allowed securities funded through cash collateral to be considered as maintenance margin for margin trading facility (MTF). The move will also help alleviate the burden of additional collateral towards the maintenance margin for the margin trading facility. The development took place after the Securities and Exchange Board of India (Sebi) received representations from market participants through the Industry Standards Forum (ISF) to relax the requirement pertaining to the margin trading facility. In a circular, Sebi said stocks or units of equity exchange-traded fund (ETFs) deposited as collateral with the brokers and those purchased using margin trading must be kept separate. There should be no mixing of these two types for calculating the funding amount. "In case the broker has collected cash collateral from the client in the form of margin for availing margin trading facility and the trading member has given

Sebi modifies foreign venture investors' registration, eligibility criteria

Capital markets watchdog Sebi has notified rules to streamline the framework for the registration of Foreign Venture Capital Investors (FVCIs). Under this, the process of granting registration to FVCIs and processing other post-registration references has been delegated to designated depository participants (DDPs) in line with provisions prescribed for FPIs (Foreign Portfolio Investors). An applicant seeking registration as an FVCI is required to engage a DDP to avail of its services for obtaining a registration certificate as FVCI and at all times the DDP and the custodian of the FVCI shall be the same entity. At present, the processing of applications for granting registration to FVCIs and related due diligence is carried out by the Securities and Exchange Board of India (Sebi). "No person shall buy, sell or otherwise deal in securities as a foreign venture capital investor unless it has obtained a certificate granted by a designated depository participant on behalf of the Board

Nippon, Axis mutual funds set to launch active momentum offerings

At present, there is only one active momentum fund, that of Samco MF. Most other fund houses have momentum factor-based funds on the passive side

Sebi revises eligibility criteria for entry, exit of stocks in F&O segment

Capital markets regulator Sebi on Friday revised the eligibility criteria for entry and exit of stocks in the derivatives segment to ensure that only high-quality stocks with sufficient market are allowed to trade in such segment. To be eligible for entry into the derivatives segment, stocks must meet certain criteria based on their performance in the cash market over the previous six months on a rolling basis. The stock's Median Quarter Sigma Order Size (MQSOS) must be at least Rs 75 lakh, revised, from the current Rs 25 lakh and the Market Wide Position Limit (MWPL) must be at least Rs 1,500 crore, increased from the present Rs 500 crore due to a rise in market capitalisation, Sebi said in circular. Additionally, the stock's Average Daily Delivery Value in the cash market has been increased to at least R 35 crore from Rs 10 crore, owing to a significant increase in the average daily delivery value. Stocks, which meet the eligibility criteria in the underlying cash market of any .

Sebi plans to tighten SME IPO norms, migration regulations: Ashwani Bhatia

A consultation paper to review the eligibility conditions, disclosures, and institutional portion expected soon

Market regulator Sebi plans to revamp the informal guidance framework

Additionally, Sebi has proposed to hike the application fee from Rs 25,000 at present to Rs 75,000

Sebi proposes mandatory maintenance of communication record for eight yrs

Markets regulator Sebi on Thursday proposed to make it mandatory for all entities regulated by it to maintain communication records, including acknowledgements, for at least eight years. The move is aimed at improving regulatory compliance, increase transparency, protect investors' interest and boost their confidence in the securities market. In its consultation paper, the regulator suggested that all entities regulated by it should maintain records of all required communications, including acknowledgements, for at least eight years as per their governing regulations. These records must be made available to Sebi upon request, ensuring transparency and accountability. The Securities and Exchange Board of India (Sebi) has sought comments on the consultation paper till September 13. Under the current regulatory regime, Sebi-regulated entities are mandated to communicate various types of information to numerous stakeholders. This enables a regular and timely disbursal of information t

Sebi mulls proposals on PIDs' appointment process at key institutions

Sebi on Thursday came out with proposals connected with the process adopted by the markets regulator for the appointment of public interest directors (PIDs) on stock exchanges, clearing corporations and depositories, in a move aimed at improving shareholders' participation in the process. For improving ease of doing business for PIDs, the proposals include easing documentation requirements when being considered for PID appointment, allowing payment of fixed stipend to them in addition to sitting fees, and reducing cooling off period for their appointment. "The role of PIDs is vital in enhancing corporate integrity and governance standards in any market infrastructure institutions (MIIs). PIDs, especially, play a vital role in balancing the interests of MII's management, its shareholders and more importantly ensuring the safety, efficiency and integrity for the market participants using the infrastructure of these MIIs. "PIDs ensure that in pursuance of their business objectives, MII