Page 35 - Sebi Norms

Sebi issues procedure for vault managers to seek prior approval for change

Capital markets regulator Sebi on Friday came out with a procedure for vault managers to seek prior approval from the watchdog in case of a change in control. The vault manager is regulated as a Sebi intermediary for providing vaulting services meant for gold deposited to create electronic gold receipts (EGRs). The obligations of the vault manager include accepting deposits, storage, and safekeeping of gold, creation as well as withdrawal of EGR, grievance redressal, and periodic reconciliation of physical gold with the records of the depository. Under the procedure, Sebi said that an application should be made by the vault managers to the regulator for prior approval through the Intermediary Portal, according to a circular. "Applications for fresh registration under a change in control shall be made to Sebi within six months from the date of prior approval," the regulator said. The matters which involve a scheme of arrangement and need sanction from the National Company Law Tribu

Sebi bars ex-Care Ratings MD & CEO Rajesh Mokashi for two years

The market watchdog has relied upon exchanges and messages on WhatsApp by the members of the rating committee lamenting the repeated interference by Mokashi

Market regulator Sebi comes out with dispute resolution mechanism for LPCC

Capital markets regulator Sebi on Monday put in place a dispute resolution mechanism for Limited Purpose Clearing Corporation (LPCC) to settle disputes and claims arising out of transactions cleared by it. The mechanism will be used to settle disputes between clearing members; contention between the clearing members and their clients; differences between the LPCC and its vendors; and disputes between clearing members or its clients and the LPCC. The new framework would come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said in a circular. LPCC is an entity established to undertake the activity of clearing and settlement of repo transactions. A well-functioning repo market contributes to the development of the debt securities market by way of boosting the liquidity of the underlying debt securities and allowing market participants to monetise their debt holdings without selling the underlying, thus meeting their temporary need for funds. In its

Sebi takes more stringent approach towards initial public offerings

Regulator insisting firms identify promoter entities wherever possible, say investment bankers

Sebi imposes Rs 1.55-cr fine on 23 entities for flouting regulatory norms

Capital markets regulator Sebi on Friday imposed fines totalling Rs 1.55 crore on 23 entities for violating regulatory norms in the matter of trading by certain entities in mentha oil futures contracts at Multi Commodity Exchange (MCX). The regulator slapped a fine in the range of Rs 1 lakh to Rs 10 lakh on 23 entities. The order came after MCX had observed that certain entities are connected with North End Foods Marketing (NEFM) and on the basis of funding from NEFM they were holding more than 75 per cent of the total exchange deliverable stock of mentha oil held in the exchange. Further, MCX submitted its observations to Sebi in June 2018 and conducted a detailed examination to find out whether certain connected entities intended to corner the market on long side in mentha oil contracts thereby violating the position limits as prescribed by the regulator. In its order, Sebi's Adjudicating Officer Vijayant Kumar Verma said, "I find that Noticee 3 to Noticee 21, through a premedita

Compliance period extended from 2 to 3 yrs for 'large corporates': Sebi

Capital markets regulator Sebi on Friday extended the compliance requirement to three years for 'large corporates' to raise at least 25 per cent of their incremental borrowings through debt securities to a contiguous block from two years at present. This comes after the board of Sebi approved a proposal in this regard on Wednesday. Currently, the rules mandate large corporates to mobilise a minimum of 25 per cent of their incremental borrowings in a financial year through the issuance of debt securities which has to be met over a contiguous block of two years. In a circular, Sebi "decided that the contiguous block of two years over which large corporates need to meet the mandatory requirement of raising minimum 25 per cent of their incremental borrowings in a financial year through issuance of debt securities will be extended to a contiguous block of three years (from the present requirement of two years) reckoned from FY 2021-22 onwards." In case a large corporate is unable to com

Digit Insurance re-files IPO papers after addressing regulator concerns

India's Go Digit Insurance has re-filed draft papers for a $440 million initial public offering (IPO) after addressing the market regulator's concerns related to the company's employee stock plans

Infinium, MOS, Exhicon, Sancode IPOs to be launched today; check details

All the IPOs belong to the Small and Medium Enterprises (SME) segment

SPC Lifesciences files draft papers with Sebi for initial public offer

Pharmaceutical ingredients maker SPC Lifesciences Ltd has filed preliminary papers with the capital market regulator Sebi to raise funds through an initial public offering. The Initial Public Offering (IPO) consists of fresh issuance of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 89.39 lakh equity shares by promoter -- Snehal Rajivbhai Patel -- according to the draft red herring prospectus. The company may consider a pre-IPO placement aggregating up to Rs 60 crore and if such a placement is completed, then the fresh issue size will be reduced. The proceeds from the fresh issue will be used to pay debt, to support working capital needs and to fund capital expenditure requirements for setting up Phase-2 at its Dahej facility in order to expand product offerings of pharmaceutical intermediates, and for general corporate purpose. Gujarat-based SPC Lifesciences is a leading manufacturers of advanced intermediates for certain key active pharmaceutical ingredients. Th

Sebi introduces framework for scheme of arrangement by clearing corps

Capital market regulator Sebi on Tuesday introduced a framework for 'scheme of arrangement' by unlisted stock exchanges, clearing corporations and depositories. A scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors. At present, there is no specific provision for unlisted Market Infrastructure Institutions (MIIs) -- stock exchanges, clearing corporations and depositories -- to file the draft scheme of arrangement with Sebi prior to filing the application before any court or tribunal. Further, the process to be followed by unlisted MIIs in case of a scheme of arrangement is currently not specified. Under the new framework, Sebi said that unlisted MII desirous of undertaking a scheme of arrangement will have to file the draft scheme of arrangement along with a non-refundable fee with the regulator for obtaining the observation letter or no-objection letter before filing such a scheme with any court or tribunal. The provision may not

Sebi takes stricter approach in IPO clearance; returns draft paper of 6 cos

After the Paytm's IPO fiasco, Sebi has turned cautious while giving clearance to the initial share sales as it has returned the preliminary papers of half a dozen companies, including Oravel Stays, which operates hospitality chain OYO, in over two months. These companies have been asked to re-file their draft red herring prospectus (DRHP) with certain updates. Apart from OYO, the firms whose draft papers have been returned by the regulator are -- Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group; home-grown mobile maker Lava International; B2B payments and services provider Paymate India; Fincare Small Finance Bank India and integrated services company BVG India, according to an analysis of data with Sebi . The six companies had filed their preliminary initial public offering (IPO) papers with Sebi between September 2021 and May 2022 and their papers were returned during January-March (till March 10). Together, these companies were hoping to raise at least

Sebi's tough norms for FPIs: Mandatory to disclose any material changes

Capital markets regulator Sebi has made stringent norms for Foreign Portfolio Investors (FPIs), asking them to disclose any material change in their structure and common ownership within seven working days. With regard to new FPI registrations, the Securities and Exchange Board of India (Sebi) can ask them for any additional documents which may be required, according to a notification. Under the new rules, FPIs will inform Sebi and designated depository about any false or misleading information about change in material respect and any change in their structure or control within seven working days in writing. In addition, FPIs will have to inform in case of any penalty, pending proceedings, findings of investigations for which action may have been taken or is in the process of being taken by an overseas regulator against them within seven days. "In case of any direct or indirect change in structure or common ownership or control of the foreign portfolio investor or investor group, i

Sebi looking for ways to plug gaps allowing founders to own stock options

The Securities and Exchange Board of India (SEBI) does not want founders to own stock options if they have rights akin to those enjoyed by promoters

From board permanency to audits, India Inc lags in corp governance: IiAS

Under proposed Sebi norms, firms must get shareholder nod at least once in 5 yrs for each board seat so that promoters aren't able to retain control after losing dominant shareholding

Pump and dump scheme: What is it, how it works and how is it monitored

Arshad Warsi made a profit of Rs 29.43 lakh and his wife Maria Goretti of Rs 37.56 lakh using a YouTube-run pump and dump operation last year

Practice of permanent board seats at listed companies likely to end

Regulator also proposes stricter norms for binding agreements, special rights and slump sales

Freeze demat accounts of MDs and CEOs for non-compliance, says Sebi

Regulator proposes to beef up listing obligations and disclosure norms

Sebi asks brokers, depositories to maintain websites to bring transparency

With an aim to bring in transparency, capital markets regulator Sebi on Thursday mandated all stock brokers and depositories to maintain websites. A designated website brings in transparency and helps the investors to keep themselves well informed about the various activities of the Stock broker (SB) and Depository participant (DP). In view of the same, considering the advancement in technology and need to provide better services to the investors, all SBs and DPs have been mandated to maintain a designated website, Sebi said in a circular. Such website would mandatorily display information such as basic details of the SB/DP such as registration number, registered address of head office and branches and names and contact details such as E-mail IDs etc of all key managerial personnel, including compliance officer. In addition, such website is required to display step-by-step procedures for opening an account, filing a complaint on a designated E-mail ID, and finding out the status of

Sebi amends rules governing mode of payment by market intermediaries

Sebi has notified rules asking all market intermediaries and companies to make regulatory payments to it by way of direct credit into the bank account through digital payment systems. Under the rules, market intermediaries and companies are required to pay various fees to the Securities and Exchange Board of India (Sebi). In a notification, Sebi said that the fee can be paid to the regulator by way of direct credit into the bank account through digital payment systems -- NEFT (National Electronic Funds Transfer), RTGS (Real-Time Gross Settlement), and IMPS (Immediate Mobile Payment Service) -- or online payment using the Sebi Payment Gateway. To give these effects, the regulator has notified Sebi (Payment of Fees and Mode of Pay). The amendment has been brought into various regulations with respect to fees to be paid to Sebi. Last month, the market regulator clarified that all payment mechanisms provided by banks and payment aggregators authorised by the Reserve Bank of India (RBI)

Sebi asks issuers for additional disclosure in guidelines on green bonds

Capital market regulator Sebi on Monday came out with operational guidelines on green bonds asking issuers to make additional disclosure, pertaining to environmental sustainability objectives of such debt securities in the offer document. In addition, issuers of green bonds will have to disclose brief details of decision-making process followed for determining the eligibility of projects, for which the proceeds are being raised through issuance of green debt securities, Sebi said in a circular. Apart from disclosure in the offer document, the Securities and Exchange Board of India (Sebi) has asked the issuer, who has listed green debt securities, to provide certain additional disclosures along with its annual report and financial results. Also, the issuer will have to appoint a third party reviewer for a green debt security for the post-issue management of the use of proceeds from the green debt security, and verification of the internal tracking and impact reporting. Listing out .