Page 35 - Sebi Norms

Listing timeline

Sebi can proceed gradually to T+3

Sebi planning to align foreign VC investment rules with those of FPIs

Changes in eligibility requirements to ensure due-diligence of money coming from this route to India

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Sebi proposes to amend 'unpublished price sensitive information' definition

Capital markets regulator Sebi on Thursday proposed to tweak the current definition of unpublished price sensitive information (UPSI) to bring regulatory certainty and uniformity in compliance for the listed companies in respect of the identification of certain events as UPSI. The proposal came after the regulator noticed that "judgment exercised by the listed entities in terms of the categorising announcement as UPSI and consequent compliance with the spirit of the law, are not found to be adequate". In its consultation paper, the regulator suggested that the current definition of UPSI be amended, and the disclosures as required under Regulation 30 of LODR (Listing Obligations and Disclosure Requirements) be brought under it. Under Regulation 30 of LODR, listed entities are required to disclose to the stock exchanges all events or information, which are material, as soon as possible and not later than 24 hours from the occurrence of such event or information. These events included

Sebi issues Rs 5.35 cr notice to fugitive businessman Mehul Choksi

Sebi on Thursday sent a notice to fugitive businessman Mehul Choksi asking him to pay Rs 5.35 crore in a case pertaining to fraudulent trading in the shares of Gitanjali Gems Ltd and warned of arrest and attachment of assets as well as bank accounts if he fails to make the payment within 15 days. The demand notice came after Choksi failed to pay a fine imposed on him by the Securities and Exchange Board of India (Sebi). Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both of whom are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than Rs 14,000 crore. Both Choksi and Modi fled India after the PNB scam came to light in early 2018. While Choksi is said to be in Antigua and Barbuda, Modi is lodged in a British jail and has challenged India's extradition request. In a fresh notice on Thursday, Sebi directed Choksi to pay Rs 5.35 crore, which includes interest and ..

Brokers body seeks three-month extension from Sebi for KYC validation

The Sebi circular had given KYC Registration Agencies (KRAs) a timeline of 180 days, ending on April 30, 2023, to validate client KYCs

'Factually baseless': Sebi to SC on probing Adani firms since 2016

Stand by reply that stated Sebi was probing some Adani group firms: FinMin

New mutual fund schemes with performance-based fee on the anvil

Proposal being reviewed by a working group formed by Sebi

Tata Play's confidentially filed IPO gets market regulator Sebi go-ahead

Following the issuance of the observation letter, Tata Play will now have to file an updated draft red herring prospectus (UDRHP-1) before it launches its IPO

Sebi's new rule: Stock brokers can't use clients' funds for bank guarantees

Existing bank guarantees that were created using clients' funds will need to be wound down by September 30, Sebi said

Penalty for margin shortfall in derivative trading to begin from Tuesday

The trading volumes in the derivatives section have been declining since Sebi began tightening margin norms for investors

Sebi calls off Pragya Commodity Brokers' registration in NSEL case

Sebi on Friday cancelled the registration of Pragya Commodity Brokers for facilitating its clients to trade in illegal "paired contracts" on the National Spot Exchange Ltd (NSEL). By providing such a facility of taking exposure to 'paired contracts', the broker exposed its clients to the risk involved in trading in a trading product that did not have regulatory approval, Sebi said in the order. "The noticee (Pragya Commodity Brokers) provided a platform to its clients to access a product which raised serious questions on the ability of the noticee to conduct proper and effective due diligence regarding the product itself. "I hold that the Noticee does not satisfy the 'fit and proper person' criteria for holding the certificate of registration as a broker in the securities market and hence, the continuance of the Noticee as a broker will be detrimental to the interest of the securities markets," Sebi's Executive Director Pramod Rao said in the order. Sebi has asked the broker to all

Sebi bars Karvy Investor Services from onboarding new clients

In an ex-parte order, the Securities and Exchange Board of India (Sebi) noted that KISL did not have the necessary infrastructure like adequate office space, equipment and manpower to work as merchant

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