Page 25 - Sebi Norms

Sebi penalises Samco for lapses, bond platforms formalise association

The market regulator said that while onboarding, clients were not given preference to select segments, due to which the client was required to open a trading account in all segments

Market regulator Sebi specifies norms on subordinate units in InvITs

These units will be issued to sponsors or associates upon acquisition of an infrastructure project. Just like mutual funds, which are pooled investments, InvITs too issue units

Sebi reduces turnover requirement for agri commodity options to Rs 100 cr

Capital markets regulator Sebi on Monday lowered the required average daily turnover for launching options on agricultural and agri-processed commodities to Rs 100 crore from Rs 200 crore earlier. This change will take effect from June 1, Sebi said. The decision has been taken keeping into account representations received from market participants and deliberations by Sebi's Commodity Derivatives Advisory Committee (CDAC). "It is decided that for launching options contracts on agricultural and agri-processed commodities, the average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months shall be Rs 100 crore instead of existing Rs 200 crore," Sebi said in a circular. With regards to eligibility criteria for launching options on commodity futures, Sebi said that options can be traded on a stock exchange only if the underlying commodity futures meet certain criteria. For agricultural and agri-processed commodities, the average

Sebi issues SOP for handling of commodity derivatives exchange outage

Sebi on Monday came out with a standard operating procedure (SOP) asking stock exchanges having commodity derivatives segment to inform about trading disruptions within 15 minutes of such occurrences and extending the trading time by 30 minutes in certain outage conditions. Stock exchange outage means stoppage of continuous trading, either suo moto by exchange or by virtue of reasons beyond control of stock exchange. If an outage occurs on one exchange, market hours will remain unchanged on unaffected exchange, Sebi said in a circular. Under the SOP, the stock exchange that suffered the outage will have to intimate Sebi immediately after the occurrence of the outage, while the bourse has to inform market participants and trading members within 15 minutes from the occurrence of an outage through broadcast message and by publishing on its website. Further, the affected stock exchange would update about the ongoing outage in the time intervals of 45 minutes from the initial intimation

Large MFs less likely to confront promoters in voting on resolutions

Fund houses are becoming assertive in general and the trend could be helping corporate governance

Sebi tweaks framework for price band formulation in derivatives segment

The regulator has enhanced the number of trades, unique client codes, and trading members for 'flexing' of price bands. Flexing is changing the price band towards the direction of the trade

Sebi proposes measures to ease ESG disclosures by listed companies

Sebi has also proposed to make the disclosures for value chain partners voluntary for the first year instead of comply or explain basis

Sebi proposes changes in IPEV capital valuation guidelines for AIFs

As per current guidelines, they were required to provide the data to performance benchmarking agencies within six months of the end of the financial year

Sebi issues framework to shield stock price impact from market rumours

Framework aimed at providing price protection to acquirers

Sebi eases minimum promoter contribution norms to boost IPO process

Sebi has permitted promoter group entities and non-individual shareholders to contribute to the mandated promoters' contribution in case of a shortfall without being identified as a promoter

OYO withdraws DRHP, to refile its much-awaited IPO post refinancing

Softbank-backed OYO is set to refile its much-awaited IPO as the global travel tech player is close to finalising its refinancing plans to raise up to USD 450 million via sale of dollar bonds, sources said. JP Morgan is the likely lead banker for the refinancing through the sale of dollar bonds at an estimated interest rate of 9 to 10 per cent per annum, a source said. In preparation for the refinancing, OYO has already moved its application with markets regulator SEBI to withdraw its current draft red herring prospectus (DRHP). The company intends to refile an updated version of the DRHP, after the bond issuance. Oravel Stays Ltd, OYO's parent company, had in November prepaid a significant chunk of its debt amounting to Rs 1,620 crore through a buyback process. The buyback involved repurchasing 30 per cent of its outstanding Term Loan B of USD 660 million. The move brought down its outstanding loan amount to around USD 450 million. A source closely involved in the company's IPO .

LIC gets 3-yr extension from Sebi to achieve 10% public shareholding

State-owned insurance giant now has to meet regulatory requirement on or before May 16, 2027

LIC stock up 5.5% as Sebi gives 3 more yrs to meet public shareholding norm

LIC news: The revised timeline for LIC to achieve 10 per cent public shareholding is on or before May 16, 2027

Allied Blenders Ltd gets Sebi's approval to float Rs 1,500-crore IPO

Allied Blenders and Distillers Ltd, the maker of Officer's Choice Whisky, has received Sebi's go-ahead to raise Rs 1,500 crore through an Initial Public Offering (IPO), an update with the markets regulator showed on Tuesday. The initial share sale comprises fresh issuance of equity shares worth Rs 1,000 crore and an Offer-for-Sale (OFS) of shares to the tune of Rs 500 crore by promoters, according to the Draft Red Herring Prospectus (DRHP). As a part of the OFS, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev and Neesha Kishore Chhabria will sell shares. Allied Blenders and Distillers Ltd, which filed preliminary IPO papers with Sebi in January, obtained its observations on May 10, the update showed. In Sebi's parlance, obtaining observations means its go-ahead to float the public issue. As per the draft papers, proceeds from the fresh issue worth Rs 720 crore will be used for the payment of debt, besides, a portion will be used for general corporate purposes. The total

Sebi proposes to cut trading size of privately placed InvITs to Rs 25 lakh

Markets regulator Sebi on Thursday proposed to drastically reduce the trading lot size of privately placed infrastructure investment trusts (InvITs) to Rs 25 lakh in a bid to boost investors' participation and increase liquidity of such investment vehicles. The current trading lot for secondary market trading for privately placed InvITs is set at Rs 1 crore. Further, if the InvIT invests at least 80 per cent of its asset value in completed and revenue-generating assets, then the trading lot is Rs 2 crore. In its consultation paper, Sebi has proposed "to reduce the trading lot size for the purpose of trading units of privately placed InvITs on designated stock exchanges from Rs 1 crore/ Rs 2 crore to Rs 25 lakh". The proposal will help in increasing the liquidity of privately placed InvIT units by allowing a broader base of investors to participate in the market and promote diversification of investment portfolios, enabling investors to better manage risk. Additionally, the regulato

Sebi proposes easing disclosure rules for non-convertible securities

To promote ease of doing business for issuance of non-convertible securities, Sebi on Thursday proposed removing the requirement to disclose the PAN and personal address of issuers' promoters in the offer document along with other relaxations in disclosure guidelines. The current regulatory framework of Sebi's (Issue and Listing of Non-Convertible Securities) rules or NCS norms mandates disclosure of complete profile of promoters of the issuer in the offer document, which includes disclosure of PAN, personal address among others. Additionally, the regulator, in its consultation paper, suggested relaxation in the requirement of providing certain business and commercial details in case of purchase or acquisition of immoveable property in the offer document. The Securities and Exchange Board of India (Sebi) has sought comments from the public till May 30 on the proposals in its consultation paper, the regulator has proposed that details regarding branches or units of the issuer as on t

Sebi weighs mandatory direct securities payout to client's account

To enhance operational efficiency and reduce the risk to clients' securities, markets regulator Sebi on Thursday proposed making the process of direct payout of such securities to the client's account mandatory. Currently, the clearing corporation credits the pay-out of securities in the pool account of the broker, who then credits the same to the respective client's demat accounts. Further, a facility of direct delivery to investors was introduced in February 2001. "It has been decided that the process of securities payout directly to the client account shall now be mandatory," the Securities and Exchange Board of India (Sebi) said in its consultation paper. The securities for payout should be credited directly to the respective client's demat account by the clearing corporations. Moreover, clearing corporations should provide a mechanism for Trading Member(TM)/clearing members (CM) to identify the unpaid securities and funded stocks under the margin trading facility. In case of

Sebi comes out with strict rules to tackle misconduct by employees

Capital markets regulator Sebi has put in place stricter norms to tackle any misconduct and corrupt practices by its employees. Amending rules governing its employees' services, the markets regulator said that a competent authority can "direct recovery from an employee of the amount of pecuniary loss caused to the Board (Sebi) by all means available to the Board under the law". This amount could be recovered from the pay and other amounts due to the staffers. This step can be taken if an employee is allegedly acted for an improper purpose or in a corrupt manner or exercised his/her powers with corrupt motive. In its notification dated May 6, Sebi said that the new framework would be also applicable to those employees who have resigned or retired from the services or have completed the tenure of deputation. The new rules have been made applicable from the same date. It, further, said, the gratuity payable to an employee may be withheld either in full or part, during the pendency of

Sebi slaps Rs 15 cr fine on Panchariya in Winsome Yarns GDR manipulation

In its order passed in November 2023, the Securities Appellate Tribunal (SAT) affirmed Sebi's findings with respect to the first leg of the transaction about fraudulent activities in the GDR issuance

Sebi imposes stringent measures to address misconduct among its staff

Amended Employees Service Regulation to include recovery of monetary loss, whole-time members and the chairperson are not covered