The Sebi regulation seeks to curb insider trading to protect the interest of investors at large
Amid concerns over banks citing 'client confidentiality' to resist sharing of information on delayed loan repayments and possible defaults by their borrowers, capital market regulator Sebi on Wednesday announced new norms to make it mandatory for companies to provide these details to credit rating agencies. Amid numerous cases of huge loan defaults by corporates, including in cases like Infrastructure Leasing & Financial Services Ltd (IL&FS), credit rating agencies have also come under the scanner for failing to flag potential credit risks of the securities and entities rated by them. However, the rating agencies have often sought to shift the blame to companies and lenders by claiming that they find it difficult to get information about delay in meeting bank obligations and payment failures which are considered early indicators of a default. Officials said there have been occasions when some entities have sought to take the benefit of certain regulatory gaps as banks are ...
FPI regulations have been redrafted based on the recommendation of a committee headed by former RBI deputy governor H R Khan
Reward, hotline for informants on the cards
The proposed norms would be presented for Sebi's board approval at a meeting scheduled later this month, the officials added
The new framework will come into effect immediately
New norms may lead to fewer players in bankruptcy resolution
According to the new norms, the index shall have a minimum of 10 stocks as its constituents
The new norms would be effective from April 1, 2019
More than half of top 500 listed cos will have to split CMD post to meet Sebi norms
In such structures, a broker carries out trading activities for multiple clients through his own member account
The new rules also consider a stock's valuation-price to earnings ratio, client concentration and gyration in the stock price over a period of one month and one year
These are around structuring of boards, additional audits and enhanced disclosures and obligations
The government wants the special treatment extended to PSUs to continue