Page 20 - Sebi Norms

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

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