Page 20 - Sebi Norms

Sebi proposes overhaul of investment banking norms amid boom in ECM

10x hike in net worth; more clarity on roles, responsibilities

CDSL, Citibank N A settle alleged regulatory violation cases with Sebi

Leading depository CDSL and global lender Citibank N.A. on Tuesday settled with Sebi cases pertaining to the alleged violation of regulatory norms after paying settlement charges. CDSL and Citibank N.A (DDP) paid Rs 1.3 crore and Rs 40.2 lakh, respectively, towards settlement charges, according to separate orders passed by Sebi. The orders came after Central Depository Services (India) Limited or CDSL and Citibank N.A. filed applications with Sebi proposing to settle the instant proceedings initiated against them, "without admitting or denying the findings of facts and conclusions of law" through settlement orders. In view of the acceptance of the settlement terms and the receipt of the settlement amount, the instant adjudication proceedings initiated against CDSL and Citibank N.A. through show cause notices dated November 13, 2023, and February 9, 2024, respectively, are disposed of, Sebi said in its orders. With regards to the depository, the Securities and Exchange Board of Indi

RHFL fund diversion case: 5-year market ban for Anil Ambani, 24 others

Sebi imposes Rs 624 cr fine on 27 individuals, entities

Market regulator Sebi asks auditors to tread with caution with SMEs

WTM Ashwani Bhatia says preferential allotments used to benefit promoters

CARE Ratings settles CRA rules violation case with Sebi; pays Rs 13 lakh

CARE Ratings Ltd on Friday settled a case pertaining to alleged violation of Credit Rating Agencies (CRA) rules with markets regulator Sebi after paying Rs 13.05 lakh. The order came after CARE Ratings filed an application with Sebi proposing to settle the proceedings initiated against it, "without admitting or denying the findings of facts" through a settlement order. "In view of the acceptance of the settlement terms and the receipt of the settlement amount...the instant adjudication proceedings initiated against CARE Ratings Limited is disposed of in terms of...the Settlement Regulations," Sebi said. The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against CARE Ratings Ltd for alleged violation of a clause related to 'Monitoring and Review of Ratings by Credit Rating Agencies (CRAs) specified under CRA Regulations.

ICICI Securities settles matter with Sebi on alleged non-compliance

The broking outfit agreed to pay Rs 69.82 lakh for settling the charges

Sebi proposes changes to regulations regarding debenture trustees

Markets regulator Sebi on Wednesday proposed certain changes to regulations related to debenture trustees. A consultation paper has been issued to provide clarity on the term 'pecuniary relationship' of Debenture Trustee (DT) with the issuer under the existing norms and stakeholders can submit their comments till September 11. At present, there are restrictions on appointment of an entity as a DT in case of a certain level of pecuniary relationship with the issuer. The curbs will be applicable if the entity's pecuniary relationship with the issuer amounts to 2 per cent or more of its gross turnover or total income or Rs 50 lakh or such higher amount as may be prescribed, whichever is lower. The gross income will be calculated for the two immediately preceding financial years or during the current financial year. Against this backdrop, some DTs have sought clarity on whether the remuneration being drawn by DTs from the issuer is included or excluded from the purview of 'pecuniary .

Sebi releases new cyber security framework for regulated entities

Markets watchdog Sebi on Tuesday issued a new cyber security framework wherein all regulated entities are required to have appropriate security monitoring mechanisms, and the fresh norms will be implemented in a graded manner starting from January 2025. Besides, a Cyber Capability Index (CCI) for market infrastructure institutions and qualified regulated entities will be introduced to monitor and assess their cybersecurity maturity and resilience on a regular basis. The Cybersecurity and Cyber Resilience Framework (CSCRF), formulated after consultations with stakeholders, comes at a time when there are rising instances of cyber attacks. The framework will supersede the existing cybersecurity circulars and guidelines for the entities regulated by Sebi, according to a circular. For small regulated entities, Sebi said that stock exchanges NSE and BSE will establish market Security Operation Centres (SOCs) to assist them in meeting the requirements under the new framework. These SOCs

Sebi proposes changes in debenture trustee appointment to smoothen process

To legally validate and streamline disclosure in respect of debenture trustee appointments in offer documents, markets regulator Sebi has proposed to replace the term 'consent letter' with 'debenture trustee agreement'. The change will streamline the process for appointing debenture trustees in the issuance of securities, ensure transparency in the appointment of debenture trustees, and play a crucial role in the securities market. In a consultation paper floated on Saturday, the markets watchdog proposed replacing the term "consent letter" with "debenture trustee agreement" in Sebi's (Issue and Listing of Non-Convertible Securities) rules or NCS regulations. The debenture trustee agreement (DTA), which legally validates the appointment of a debenture trustee, is considered by the regulator to be more significant than the previously used term 'consent letter'. The change will help investors make more informed decisions when investing in debentures. Earlier, a working group noted t

Sebi releases guidelines for market borrowing by Category I, II AIFs

Capital markets regulator Sebi on Monday came out with guidelines for borrowing by Category I and Category II alternative investment funds (AIFs), along with the maximum permissible limit for extension of tenure by Large Value Fund for Accredited Investors (LVFs). Under the rule, Category I and II AIFs are not allowed to borrow or use leverage for investments, except in limited cases for temporary needs. These AIFs are allowed to borrow funds to address temporary funding needs or manage day-to-day operational expenses, with specific limitations. Such borrowing is permitted for up to 30 days, can occur no more than four times in a calendar year, and must not exceed 10 per cent of the investable funds. To facilitate ease of doing business and provide operational flexibility, Sebi has allowed Category I and Category II AIFs to borrow for the purpose of meeting temporary shortfall in amount called from investors for making investments in investee companies ('drawdown amount'), accordin

Sebi proposes amendments to ease compliance for entities with listed NCDs

Capital markets regulator Sebi on Friday proposed amendments to ease the compliance requirements for entities with listed non-convertible securities. This move will ease the cost of compliance for participants in the financial sector, as announced by the government in FY 2023-24 Budget. In its consultation paper, Sebi proposed aligning the approval and authentication process for financial results of entities with listed non-convertible securities to that of equity-listed entities. This will streamline the procedures, ensuring that financial results are approved by board of directors and signed by a designated official, similar to the requirements for equity-listed entities. The regulator also proposed to align the provisions of disclosure rules for fraud and default by key managerial personnel in entities with listed non-convertible securities with those applicable to equity-listed entities. As per the consultation paper, Sebi said it will also streamline the timeline for notifyin

Investment advisers, analysts must disclose AI tool usage to clients: Sebi

Sebi has proposed that registered Investment Advisers and Research Analysts who employ artificial intelligence (AI) tools in their services must disclose the extent of usage to clients, emphasizing the importance of strong security measures to avoid unintended data exposure. This transparency is crucial for clients to understand how AI tools contribute to their investment decisions and to make informed choices about their advisory services. "The possibility of unintended data exposure highlights the need for strong security measures and clear disclosure to clients about the extent of AI tool usage", Trivesh D, COO at Tradejini, a stock trading platform, told PTI. The Securities and Exchange Board of India (Sebi), in its consultation paper earlier this month, highlighted the growing usage of AI tools in Investment Adviser (IA) and Research Analyst (RA) services. With technological innovations and advancements, many AI tools are currently available in chatbot form such as OpenAI's ..

Ease in perpetual bond valuation norms set to revive market, say investors

Banks had slowed issuing the notes as the 2021 valuation norm change hurt appetite. In January this year, they had sought a relaxation

Cong urges SC to transfer Adani probe to CBI or SIT, cites Sebi concerns

Stepping up its attack on the PM Narendra Modi government over the Hindenburg Research's allegations against SEBI chairperson Madhabi Buch, the Congress on Monday threatened to launch a nationwide protest if its demand for a JPC (Joint Parliamentary Committee) probe into the matter is not accepted. AICC general secretary (Organisation), K C Venugopal, described the allegations as "very serious" and accused the Prime Minister of supporting Adani on the matter. "The Prime Minister's silence on the matter amounts to a destruction of credibility," Venugopal told reporters at the airport here. He accused the union government of trying to divert people's attention from the matter by using the Enforcement Directorate against Rahul Gandhi, the Leader of the Opposition in the Lok Sabha. "Don't try to threaten Rahul Gandhi with an ED notice. We will strongly oppose such diversionary tactics," the Alappuzha MP said. Venugopal said that "this is the most serious issue in the country" and warn

Hindenburg steps up for Adani round two, this time with attack on Sebi

Hindenburg's original report, in which it had accused the centi-billionaire of pulling largest con, caused Adani Group's market capitalisation to crater by $150 bn

Sebi, Chairperson Madhabi Puri Buch rebut Hindenburg Research charges

Find support from market participants; Adani group dubs latest report mischievous

Sebi's Buch in Hindenburg's firing line: How will markets react on Monday?

Analysts believe that these statements are mere allegations, which, at best, can trigger a knee-jerk reaction in the markets when they open for trade on Monday

Sebi asks mutual fund industry to proactively conduct stress test

Markets regulator Sebi has asked the mutual fund industry to proactively conduct stress tests, a key component of risk management for the financial sector, which will help strengthen the ecosystem, its whole-time member Ananth Narayan Gopalakrishnan said on Friday. The regulator's stress testing emphasizes the need to assess and manage liquidity risks, especially in small and midcap equity schemes. Speaking at a mutual fund event, Gopalakrishnan highlighted the importance of modelling stress scenarios not just for individual schemes or fund houses but for the entire mutual fund ecosystem. "It is also important to model stress scenarios for the entire composite mutual fund ecosystem. I would strongly encourage the industry and AMFI to take the lead and proactively conduct objective and credible industry wide stress tests. themselves," Gopalakrishnan said. He also emphasized the need to find better ways to communicate the risks associated with different mutual fund schemes. The Sebi

More regulation needed to curb retail speculation in F&O: Amisha Vora

Sebi's proposed changes will significantly impact discount brokers, whose business relies heavily on retail F&O trades, Vora said in this interview

Market regulator Sebi plans to launch smaller SIPs, Reit reforms in FY25

In its annual report, regulator says difficult to recover dues stand at Rs 76,000 crore