Page 39 - Sebi Norms

Sebi issues guidelines for brokers providing algorithmic trading services

Capital markets regulator Sebi on Friday came out with guidelines for stock brokers, who provide services relating to algorithmic trading to investors, to prevent instances of mis-selling. The guidelines came after the Securities and Exchange Board of India (Sebi) observed that certain stock brokers provide algorithmic trading facilities to investors through unregulated platforms. The unregulated platforms are offering algorithmic trading services or strategies to investors for automated execution of trades. Such services and strategies are being marketed with "claims" of high returns on investment, Sebi said in a circular. Further, "ratings" have been assigned to the strategies, which could lead to investors being lured by such claims. This may amount to mis-selling of such services and strategies to investors, it added. Accordingly, Sebi has given certain responsibilities to stock brokers that provide algorithmic trading facilities to investors through such platforms. Such stock

Adani tentative offer for NDTV to begin on October 17, Sebi nod awaited

On Monday both NDTV and the Adani group sought Sebi's guidance on whether or not RRPR Holdings, the promoter entity of NDTV, can transfer its shares to the Adani group

Sebi tweaks rules for sharp rating actions, non-cooperating issuers

Sebi comes out with circular with changes, also tweaks policy to deal with non-cooperating issuers

No Sebi nod needed: Adani Group counters NDTV promoters' defence

VCPL said the contentions raised by RRPR Holdings in a letter are baseless, legally untenable and devoid of merit.

Sebi drops Indian connection clause to make investment easy for AIF, VCF

Capital markets regulator Sebi has allowed India registered Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs) to invest in foreign entities without having an India connection. Earlier, one of the conditions was that such overseas investments were allowed only in those companies which had an Indian connection. Like, a company has a front office overseas, while having its back office operations in India. "The requirement of the overseas investee company to have an Indian connection... has been done away with," Sebi has said in a circular. The regulator, however, said that no such investments can be made in companies based in jurisdictions identified by Financial Action Task Force (FATF) as those having anti-money laundering (AML) or combating the financing of terrorism (CFT) deficiencies. Moreover, AIFs or VCFs will be allowed to invest in an overseas investee company, which is incorporated in a country whose securities market regulator is a signatory to the ...

Sebi defers implementation of MF holders' nomination rules till Oct 1

Markets regulator Sebi on Friday deferred the implementation of rules pertaining to nomination for mutual fund holders till October 1. The rules, which mandate investors, subscribing to mutual fund units, to submit details of nomination or opting out of nomination, was to come into force August 1. Now, investors, who are subscribing to mutual fund units from October 1 will have the choice of providing nomination or opting out nomination, the Securities and Exchange Board of India (Sebi) said in a circular. Asset Management Companies (AMCs) will have to provide an option to the unit holder to submit either the nomination form or the declaration form for opting out of nomination in physical or online mode as per the choice of the unit holder. In case of physical option, the forms will carry the wet signature of all the unit holders and if it is online, e-sign facility will be used instead of wet signature of all the unit holders. Besides, AMCs will validate the forms through two-fac

Inadequate KYCs: Sebi lays down rules for deactivation of accounts

MIIs will have to ensure that they communicate the details of the deactivation along with reasons to the respective registered intermediary

Sebi comes out with new guidelines on settlement of running account

Capital markets regulator Sebi on Wednesday came out with new guidelines on settlement of running accounts of clients' funds lying with stock brokers, to be applicable from October 1. Under the guidelines, the settlement of the running account of funds of the client will be done by the trading member after considering the End of the day (EOD) obligation of funds as on the date of settlement across all the exchanges on the first Friday of the quarter for all the clients. The running account of funds will be settled on the first Friday of October 2022, January 2023, April 2023, July 2023, and so on for all the clients, the Securities and Exchange Board of India (Sebi) said in a circular. If the first Friday is a trading holiday, then such settlement will happen on the previous trading day. For clients, who have opted for monthly settlement, running accounts will be settled on the first Friday of every month. If the first Friday is a trading holiday, then such settlement will happen

Sebi again extends deadline for commencing KYC record validation by KRAs

Capital markets regulator Sebi on Wednesday extended the deadline by three months to November 1, for commencing the validation of all KYC records by KYC Registration Agencies (KRAs). This is the second time, when the Securities and Exchange Board of India (Sebi) has extended the deadline. Initially, such agencies were required to independently validate the Know your Client or KYC records of all clients by July 1, which was extended till August 1. Now once again the regulator has received requests from the KRAs to extend the timelines. "Considering the KRAs' request for extension of the timeline... it has been decided that the validation of all KYC records (new and existing) shall commence from November 1, 2022," Sebi said. Further, it said that KYC records of all existing clients, who have used Aadhaar as an Officially Valid Document (OVD), will be validated within a period of 180 days from November 1. The regulator, in January, notified new norms to make KRAs responsible for car

Sebi to auction 11 properties of Arise Bhoomi Developers on August 26

Sebi on Friday said it will auction properties of Arise Bhoomi Developers and its directors on August 26 for a reserve price of Rs 52.28 crore. The move is a part of Sebi's effort to recover investors' money. Arise Bhoomi Developers had mobilised over Rs 8 crore during 2013-14 from the public in the name of 'purchase of agricultural land' through its various investment schemes, promising them an expected sum at the end of the contract. The schemes, as per Sebi, qualified to be a CIS which requires compulsory registration from the regulator. However, the company launched the schemes without obtaining necessary approvals from the regulator. In a notice, the Securities and Exchange Board of India (Sebi) said it will auction 11 properties belonging to the company and its directors at a reserve price of Rs 52.28 crore. The auction will be conducted online in August. The properties that have been put on sale include land parcels, shop and a plot, located in Uttar Pradesh and ...

Sebi provides directive for sub-KYC user agency for Aadhaar authentication

Capital markets regulator Sebi on Wednesday issued directives for sub-KYC user agencies to provide Aadhaar authentication services to their clients for the purpose of know your customer (KYC). This comes after the government last week notified 155 entities as sub-KUAs (KYC user agencies) to use Aadhaar authentication services of the UIDAI (Unique Identification Authority of India). In a circular, the Securities and Exchange Board of India (Sebi) said that these entities are required to enter into an agreement with a KUA and get themselves registered with UIDAI as sub-KUAs. The agreement in this regard will be as prescribed by the UIDAI. Further, the sub-KUAs need to follow the process as may be prescribed by the UIDAI from time to time. "The KUAs shall facilitate the onboarding of these entities as sub-KUAs to provide the services of Aadhaar authentication with respect to KYC," the regulator said. In May 2020, the regulator listed the entities that can undertake e-KYC Aadhaar ...

PNB Housing, directors shell out Rs 73 lakh to settle case with Sebi

The payment was made under settlement rules, which allow an alleged wrongdoer to settle a matter without admitting or denying the guilt

Sebi's market risk factor disclosures will generate detailed datasets: CPAI

Commodity Participant Association of India (CPAI) on Monday said capital markets regulator Sebi's planned move on market risk factor disclosures will generate detailed datasets. According to sources, the regulator is planning to issue regular 'risk factor disclosures' on market trends, including surges and collapses, to help investors make right decisions by learning from the regulator's insights. The move, which is still in a preliminary stage of discussion, can help investors avoid a herd mentality that has been particularly witnessed during the last couple of years starting with large-scale selloffs when the pandemic hit the world in early 2020, followed soon by a sharp surge in buying of stocks without understanding the fundamentals and largely on account of get-rich-quick stories and then subsequent losses. "We at CPAI, wholeheartedly welcome this step. Sebi is best placed to take a holistic view of the market place and share it with investors and new retail investors have bee

Sebi asks bourses, depositories to launch online complaint redressal system

To enable investors to lodge their complaints and track the status of redressal of such grievances, capital markets regulator Sebi on Monday asked exchanges to launch a complaints redressal forum

Sebi extends last date for implementation of new pledging system to Sept 1

Earlier deadline was July 1; Move follows request by depository firms tasked with readying the backend for the new system for extension as the "changes to the systems are still under process"

Sebi comes out with new format for disclosure of shareholding patterns

With an aim to provide further clarity and transparency in the disclosure of shareholding pattern to investors, Sebi on Thursday came out with a new format for disclosing shareholding patterns

AMCs prepare to launch new schemes from July as Sebi restriction nears end

Asset management companies are gearing up to launch new mutual fund schemes from July as capital markets regulator Sebi's ban on the introduction of new fund offerings nears its end

Trading volume dips amid market turmoil, retail investors take a hit

ADTV for cash segment lowest since Feb 2020; retail participation hit, say analysts

Sebi amends educational qualification criteria for recruiting new officials

Bachelor's in engineering in any discipline or Bachelor's in any discipline with a postgraduate qualification in computer application is required for filling up posts in Grade D, E and F posts

BoI to raise capital up to Rs 2,500 cr to comply with shareholding norm

Bank of India said the capital is to be raised during the period of one year from the date of passing of the resolution in one or more tranches.