Page 29 - Sebi Norms

Sebi proposes changes to ease fundraising, disclosure for listed companies

The regulator proposes considering funds and insurance companies holding 5% in firms post-public offer as large non-public shareholders, as per the paper

Road to listing may get easier: Sebi expert panel for relaxing IPO norms

India Inc may get more flexibility to alter issue size, bring in promoter contribution

Institutional investors need to disclose about short sale of shares: Sebi

Markets watchdog Sebi on Friday said that institutional investors have to disclose upfront at the time of placing an order whether a proposed transaction is a short sale or not, a significant move aimed at curbing market volatility. The Securities and Exchange Board of India (Sebi) has made certain changes with respect to norms pertaining to short selling in the market. Short selling refers to selling a stock which the seller does not own at the time of trade. Both retail and institutional investors are permitted to short sell stocks. Amending a circular relating to short selling issued last year, Sebi said, "the institutional investors shall disclose upfront at the time of placement of order whether the transaction is a short sale". However, retail investors would be permitted to make a similar disclosure by the end of the trading hours on the transaction day. "The brokers shall be mandated to collect the details on scrip-wise short sell positions, collate the data and upload it

Fintech firm Mobikwik refiles draft papers with Sebi to raise Rs 700 cr

Unicorn fintech firm One MobiKwik Systems Ltd has filed its preliminary papers with markets regulator Sebi to raise up to Rs 700 crore through an initial public offering. This is the second attempt by the Gurugram-based firm for the public issue following its first attempt in July 2021. Earlier, the company shelved its IPO plans and withdrew its draft papers due to unfavourable market conditions. The public issue is entirely a fresh issue of equity shares worth up to Rs 700 crore, as per the draft red herring prospectus (DRHP) filed on Thursday. The company may consider a pre-IPO placement of its securities worth up to Rs 140 crore. If such a placement is undertaken, the size of the fresh issue will be reduced. The proceeds from the fresh issue to the tune of Rs 250 crore will be used for funding growth in the financial services business and Rs 135 crore for the payment services business. Further, Rs 135 crore for investment in data, machine learning and artificial intelligence, a

Sebi chooses to tread cautiously, no rush to stretch market hours

Moscow Exchange in Russia allows equity derivatives trading from 7 am to midnight, and Eurex Exchange is open until 10 pm

Sebi proposes action points to ease rumour verification regulations

The regulator has put forth the suggestions of the Industry Standard Forum to address the current challenges

Sebi tweaks norms for online bond platform providers to boost ease of biz

Capital markets regulator Sebi on Thursday tweaked the regulatory framework for Online Bond Platform Providers (OBPPs) to enhance the ease of doing business. This came after Sebi received representations from stock exchanges and market participants, including online bond platforms. "The proposed modifications shall aid in ease of doing business for OBPPs," the Securities and Exchange Board of India (Sebi) said in a circular. Under this, the regulator has modified the framework pertaining to the issue of order receipt, deal sheet and quote receipt in case of products, securities or services. On placement of an order by an investor, Sebi said that OBPPs will have to issue without delay an electronic order receipt which includes the date and time of the order, details of counter-parties involved, quantity and amount proposed to be transacted. After the execution of the order, the entity will issue a deal sheet to the investor for all transactions, stating all the relevant information

Adani Wilmar promoters to divest stake by 1.24% for Sebi compliance

Adani Commodities and Lence Pte, the promoters of the company, will be divesting part of their shareholding, Adani Wilmar said in an exchange filing

Sebi proposes implementation of T+0 settlement cycle in two phases

The shorter cycle to be optional; T+1 to remain available

Need a Sebi-like regulator for social media platforms: BJP MP in RS

A SEBI-like regulatory body is needed for social media platforms to curb growing deepfakes and synthetic videos, BJP MP Sushil Kumar Modi demanded in Rajya Sabha on Thursday. Raising the issue through a Zero Hour mention, he said deepfake videos and synthetic videos are threatening democracy in the country. "There is a lot of disinformation... People don't have tools to verify," he said, adding women are soft targets of deepfakes. While an app is in circulation that can generate a nude picture of any fully dressed person, digitally altered faces of celebrities like Shah Rukh Khan are being used to promote betting platforms. "This is a new threat to democracy," Modi said, adding the government should ask social media companies to detect, remove, strengthen reporting and create public awareness about the new phenomenon. "Self regulation for social media is not sufficient. SEBI-like regulatory body needs to be set up for social media platforms," he added. While Anil Baluni of the BJ

Sebi introduces SaaS model for clearing corps to boost business continuity

To strengthen the business continuity framework of clearing corporations for handling major software malfunctions, Sebi on Wednesday asked them to establish their critical Risk Management Systems (RMS) using a software-as-a-service (SaaS) model. RMS plays an important role in ensuring smooth and uninterrupted functioning of the securities market by carrying out online real-time risk management of trades happening on stock exchanges. Non-availability of RMS poses a major risk to the continuity of trading on stock exchanges. In the first phase, systems would be designed to provide an additional tool for business continuity in case of issues with RMS of clearing corporations, Sebi said in a circular. "In order to further manage disruptions impacting availability of RMS, it is proposed to have another contingency measure in place under Software as a Service (SaaS) model," Sebi said. The framework in the first phase would operate for existing interoperable segments of CCs -- cash marke

Sebi tweaks norms for online resolution of disputes in securities market

Sebi on Wednesday tweaked the framework with respect to online resolution of disputes in the securities market to provide clarity on certain aspects. In its circular, the regulator has provided clarity on the online arbitration process, and arbitrator's fee, among others. The Securities and Exchange Board of India (Sebi) said that the market participant against whom the investor pursues the online arbitration will participate in the arbitration process. Accordingly, within 10 days of the initiation of the online arbitration by the investor, the market participant will make the deposit of 100 per cent of the admissible claim value with the relevant MII (market infrastructure institutions) and make the payment of the fees for online arbitration. Non-adherence to rule by market participants may result in action against them by MIIs or Sebi. In case the market participants plan to pursue online arbitration then they will have to inform the ODR (Online Dispute Resolution) institution .

RBI issues advisory to banks, financial cos to curb evergreening via AIFs

According to the RBI advisory, banks, NBFCs, and other financial institutions like Nabard and Sidbi will not be able to make investments in any scheme of AIFs which has downstream investments

Sebi likely to relax new disclosure norms around rumour verification

Legal experts said that as such disclosures will have a bearing on stock prices there is a need for tweaks in regulations addressing fraudulent trade practices

Demat account holders can furnish nomination declarations by Jan 1, 2024

The Securities and Exchange Board of India (Sebi) stated that those who fail to do so will not be able to transact in stocks

Sebi extends deadline for AIFs dematerialisation till January 31

Sebi has specified the process to be followed in cases where the investors have yet to provide the demat account details to AIFs

Sebi specifies process to follow for dematerialising units of AIFs

Capital markets regulator Sebi on Monday specified the process to be followed for dematerialising the units issued, in cases where investors are yet to provide demat account details to Alternative Investment Funds (AIFs). Under the rules issued in June, AIFs with a corpus of Rs 500 crore or more were required to dematerialise all issued units by October 31, 2023. Further, these AIFs will have to issue units only in dematerialised form from November 1, 2023, onwards. Similarly, AIFs with less than Rs 500 crore corpus will have to dematerialise issued units by April 30, 2024, and issue only dematerialised units May 1 onwards. The dematerialisation of AIF units is seen as a significant move towards digitisation, fostering transparency, and enabling effective monitoring of transactions in the financial landscape. In a circular on Monday, Sebi said managers of AIFs will continue to reach out to existing investors to obtain their demat account details and credit the units issued to them

Sebi likely to allow non-convertible debentures with lower face value

Further, these issuances will only be interest or dividend-bearing instruments with a simple structure

Sebi looks to introduce new 'high-risk' investment vehicle, says Buch

The proposed category will likely have a higher minimum investment threshold but lower than that of PMS

SAT sets aside market regulator Sebi's order against IIFL Securities

Sebi alleged that IIFL Securities failed to segregate clients' funds and mixed its own funds with it