Page 26 - Sebi Norms

Sebi relaxes timelines for FPIs to make material event disclosures

Markets regulator Sebi on Wednesday relaxed timelines for disclosure of material changes by Foreign Portfolio Investors (FPIs). The regulator categorised material changes notified by FPIs into two groups. Type I group includes changes that require FPIs to seek fresh registration, or which affect any privileges or exemptions available to such foreign investors and Type II includes all other material changes. In its circular, Sebi said that FPIs are required to report Type I changes within seven working days and provide supporting documents within 30 days and Type II changes require notification and supporting documents within 30 days. At present, FPIs get up to seven working days to submit information to the watchdog with regard to any material change in its structure or ownership or control or investor group. Some of the Type 1 material changes include change of jurisdiction; name change on account of acquisition, merger, demerger, and ownership. Type II is any material changes oth

Sebi committee to review ownership structure of clearing corporations

Panel chaired by former RBI deputy governor to suggest alternatives to ensure capital needs of clearing corporations

Sebi seeks additional IPO disclosures to speed up clearance process

After a co files for IPO, Sebi may seek additional details from merchant bankers, and the companies can also file addendums to their draft documents based on clarifications sought by market regulator

Investing in g-secs; building small portfolio: Top personal finance stories

Our top stop stories this week tell you about the pros and cons of government securities and what investors must know about compounding

Market regulator Sebi issues guidelines on settlement penalties

Under the norms, entities can settle a matter by paying an amount, usually decided by a committee of Sebi

Sebi asks clearing corporations to diversify their bank exposure

Regulator also tweaks norms on collateral and liquid assets

Sebi tweaks framework for clearing firms on liquid assets as collateral

Capital markets regulator Sebi has tweaked guidelines for accepting liquid assets as collateral by clearing corporations (CCs) and put in place prudential norms for exposure of such entities in a bid to strengthen the risk management framework. Clearing corporations accept liquid assets with applicable haircuts to meet the requirements for initial margins and mark to market losses among others. In its circular, the regulator said that units of growth plan of overnight mutual fund schemes would be accepted as cash equivalent by CCs with a haircut of 5 percent and for other plans of overnight mutual fund schemes, the hair cut of 10 percent would continue to be applicable. Overnight mutual funds invest only in overnight securities having maturity of one day. Further, equity shares with impact cost of up to 0.1 percent for an order value of Rs 1 lakh and traded for 99 percent of days over the period of previous six months would be accepted as part of other liquid assets, it said. "In

Sebi reduces approval time to 7 days for brokers for internet-based trading

Markets regulator Sebi on Thursday significantly reduced the time taken by stock exchanges for granting approval to stock brokers for internet-based trading to seven days from the current 30 days. The move is aimed at facilitating ease of doing business. Under the rule, the broker is required to apply to the respective stock exchange for a formal permission to provide internet-based trading service. Further, the stock exchange, which was required to communicate its decision to the member within 30 calendar days, will now have to do so within 7 days, the Securities and Exchange Board of India (Sebi) said in its circular. The internet trading can take place through order routing systems, which will route client orders to exchange trading systems for execution. Thus a client sitting in any part of the country can trade using the internet as a medium through brokers' internet trading systems. Additionally, the regulator has abolished the existing requirement of periodic confirmation

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