Page 36 - Sebi Norms

Sebi proposes norm to prevent brokers from retaining clients' funds

To curb possible misuse of investors' money by brokers, Sebi has proposed to stop trading members and clearing members from retaining any part of client funds at the end of day and move the entire funds to the clearing corporation on the same day. At present, when an investor places funds with a broker a portion of such money is retained by the broker, and a part by the clearing member, before passing the remaining amount to the clearing corporation. In its consultation paper, the regulator has proposed mandating daily upstreaming of all investor funds from stock brokers and clearing members (CMs) to Clearing Corporations (CCs). Investor funds in surplus of exchange margin requirements may in turn be placed by CCs in very low-risk and liquid overnight money market instruments. The proposal also considers independent daily confirmation to investors around their daily funds position in the securities market ecosystem. While the proposal could reduce the float income implicitly enjoye

9 out of 10 individual traders in F&O segment making losses: Sebi

Nine out of 10 individual traders in the equity F&O segment incurred net losses during both the years FY 2018-19 and FY 2021-22, according to a study by market regulator SEBI.

Sebi to introduce more safeguards for F&O as traders' losses mount

Regulator's study on F&O segment shows over 90% traders incurred losses in FY22, with the average hit over 15x the earnings of the 10% who made profits

Market regulator Sebi intensifies drive against front-running violations

Conducts search and seizure operations against some experts who appeared on TV channels

Sebi amends rules; intermediaries require prior nod for change in control

Capital markets regulator Sebi has amended rules which require vault managers and custodians to seek the watchdog's prior approval in case of change in control. The changes have been made to streamline the process of providing approval to the proposed change in control of the entities. In a notification, the Securities and Exchange Board of India (Sebi) said that the vault managers and Custodians will have to obtain prior approval of the Board in case of change in control in such a manner as specified by the regulator. To give this effect, Sebi has amended rules governing custodian and vault managers and the new rule has become effective from January 17. 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 reconciliatio

Sebi carries out nationwide raids on market experts for front-running

The markets regulator Securities & Exchange Board of India (SEBI) has carried out nationwide raids targeting front-running carried out by market experts appearing on a business news television channel

Sebi opts for principles-backed approach on ESG ratings, says report

The move by SEBI would allow such scores to be assigned to more companies, making it increasingly possible for investors to assess businesses with a yardstick seen to be growing in importance

Sebi penalises individual for manipulating Panafic Industrials share prices

The order came after Sebi received complaints alleging receipt of SMS urging investors to buy the scrip of PIL

Sebi fines DSP group firms Rs 1 lakh for charging TER from AMC books

Sebi noted the defaulters paid 0.09% expenses of the scheme out of 0.16% from their own books in case of DSP Nifty 50 ETF

BOI MF settles 'inter-scheme transfer' case with Sebi, pays Rs 3.93 cr

The fund house along with five individuals pay Rs 3.93 crore for the settlement

Sebi proposes regulatory framework for index providers, Rs 25 cr net worth

The regulator has floated a fresh consultation paper proposing provisions for eligibility, disclosures and audit

Sebi penalises clearing corporations for violations in Karvy Broking case

The broking firm had misused securities from clients through unauthorised pledging which were used to raise funds from several banks

Sebi may prescribe higher net-worth needs for qualified stockbrokers

Regulator's approach being looked at as similar to one of different layers of NBFCs specified by RBI

Sebi to tighten norms for stock exchanges, other market infra institutions

Sebi on Tuesday decided to amend the governance norms for stock exchanges and market infrastructure institutions, including categorising their functions into three verticals and rationalising the appointment process for public interest directors. The regulatory changes are expected to bring in "greater transparency and accountability" in the functioning of Market Infrastructure Institutions (MIIs), Sebi said after its board meeting here. The changes, cleared by the board, have been finalised after a comprehensive review of the governance of MIIs -- stock exchanges, clearing corporations and depositories. Going forward, the function of an MII will be categorised into three verticals -- critical operations, regulatory, compliance and risk management, and other functions, including business development. The Key Management Personnel (KMPs) heading the functions under the first two verticals will be at par in the hierarchy with the KMPs heading the third vertical. Also, MIIs will have t

Sebi to gradually phase out share buyback through stock exchange route

Markets regulator Sebi on Tuesday decided to gradually phase out buyback of shares by companies through the stock exchange route and also approved steps to boost governance at stock exchanges and other market infrastructure institutions. These were among the proposals approved by Sebi board during its meeting on Tuesday. Sebi Chairperson Madhabi Puri Buch said the regulator has chosen the tender offer route for share buyback as the present mode is vulnerable to favouritism. "This is a glide path and will lead to the phasing out of the present buyback mode (through stock exchange route)," she told reporters here. Currently, for share buyback, companies have both the options of stock exchange and tender offer. Besides, Sebi board has decided to reduce time taken for registration of FPIs to facilitate ease of doing business. Norms will also be amended to facilitate sustainable finance in the country and curb 'greenwashing'.

BS BFSI Insight Summit 2022: Sebi member Ashwani Bhatia to speak at event

In the last six months with Sebi, he has delivered crucial orders in matters such as credit rating agencies, commodity brokers, and RTAs, among others

Overseas investors oppose Sebi's data localisation norms, cite cyber risk

Sebi's proposed mandate will negatively impact FIs' global operation, ASIFMA argues

Subramanian Swamy alleges differential treatment by market regulator Sebi

Seeks the Sebi chair's intervention and probe in specific cases of violations

Market regulator Sebi bars FWCS, its directors from markets for 1 year

Markets regulator Sebi has barred Fingravy Wealth Creation Services (FWCS) and its directors from the securities markets for 1 year for providing unauthorised advisory services. The order came after Sebi passed an ex-parte interim order dated January 14, 2020 against FWCS and its present and past directors -- Dhiraj Gupta, Sumit Kumar, Hemanchal Singh, Ravindra Singh and Ashutosh Sharma. In its interim order, the regulator found FWCS and its directors were prima facie found to have violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules and IA (Investment Advisors) norms. The regulator also noted, noticees have been restrained from accessing the securities markets until further orders through the interim order. They were also directed to cease and desist from acting as an investment advisor until further orders. In its final order, the regulator found FWCS and its directors have not disputed the findings of the interim order in respect of the

NSEL scam: Sebi bans five major commodity brokers for six months

The brokers had appealed to the Securities Appellate Tribunal (SAT) against a previous order by Sebi issued in 2019