Page 9 - Sebi Norms

Sebi chief seeks feedback from industry on easing regulatory norms

Sebi Chairman Tuhin Kanta Pandey held discussions with over 50 MDs and CEOs to gather feedback on easing business norms and enhancing capital market efficiency

SAT denies interim relief to Gensol in Sebi fraud case, reply due in 2 wks

SAT has asked Gensol to respond to Sebi's charges within two weeks even as MCA and EOW intensify scrutiny into alleged fund diversion and forged documentation

Sebi may allow colocation in commodity bourses to boost efficiency

Commodity derivatives advisory panel at Sebi is reviewing a proposal to allow colocation, which could improve price discovery, liquidity, and market participation

HDFC Capital pays Rs 36 lakh to Sebi to settle AIF rule breach case

HDFC Capital Advisors and HDFC Capital Affordable Real Estate Fund-I on Tuesday settled with Sebi a case pertaining to the alleged violation of AIF rules after paying Rs 36 lakh towards the settlement amount. HDFC Capital Advisors -- the investment manager of HDFC Capital Affordable Real Estate Fund-I (HCARE-1), an Alternative Investment Fund (AIF) -- had filed suo motu settlement applications under Sebi's settlement rules. HDFC Capital Advisors and HCARE-1 sought to resolve enforcement proceedings that may be initiated against them for the alleged violations of AIF norms by proposing to settle by neither "admitting nor denying the findings of fact and conclusions of law". As per the settlement order, the markets watchdog will not initiate any further step against HDFC Capital and its managed fund for the violations. However, the regulator could initiate action in case any misrepresentation comes to light or if there is a breach in the terms of the settlement. "...it is hereby ord

Sebi may set up separate mechanism for voluntary delisting of PSUs

Markets regulator Sebi on Tuesday proposed carving out a separate mechanism for voluntary delisting of PSUs, where the government or promoter group owns 90 per cent or more of shares. Under current rules, delisting is successful if promoter shareholding reaches 90 per cent. Moreover, the floor price for delisting is calculated using several pricing metrics such as 60-day average price and highest price in the last 26 weeks. These rules can make delisting costly for PSUs due to high market prices despite low book values or weak financials. In its consultation paper, Sebi noted that many PSUs have low public shareholding, outdated business models or weak future outlook and higher market prices due to government ownership than actual value. These make them financially burdensome for the government to delist such companies. In view of these drawbacks and to facilitate delisting of such PSUs, Sebi has proposed that a separate carve out for voluntary delisting should be created. Under

Sebi sets ₹1 crore minimum, mandates demat for securitised debt instruments

Markets regulator Sebi has mandated a minimum ticket size or investment threshold of Rs 1 crore for the RBI-regulated originators and unregulated entities engaged in securitisation activities. Securitised Debt Instruments (SDIs) are financial products created by pooling together various types of debt -- such as loans, mortgages, or receivables -- and then selling them as securities to investors. This process, known as securitisation, allows the originator (such as a bank) to convert illiquid assets into liquid ones, providing an alternative source of funding. Investors in these instruments receive returns based on the performance of the underlying debt pool, and the risk is spread across multiple assets, offering potentially attractive returns. "The minimum ticket size for issuance of a securitised debt instrument shall be rupees one crore," Sebi said in a gazette notification. Further, the minimum ticket size for subsequent transfers of a securitised debt instrument will be Rs 1 .

SME migration to mainboard slows as tighter Sebi norms take effect

Migration from SME platform to mainboard has dropped sharply in 2024-25, with SEBI's tighter financial and governance norms expected to slow movement further

Sebi relaxes norms for brokers to expand in Gift City, nixes separate NOC

Markets regulator Sebi on Friday allowed stock brokers to operate in the International Financial Services Centre (IFSC) at GIFT City, without taking its prior approval. Stock brokers proposing to undertake securities market related activities in GIFT-IFSC are permitted to do so under a separate business unit (SBU) of the stock broking entity itself. These activities can also be carried out if the branch qualifies as an SBU, Sebi said in its circular. Moreover, the existing practice of carrying out securities market-related activities in GIFT-IFSC through a subsidiary is also allowed. Thus, the form in which these activities are to be carried out is at the discretion of the entity. The matters related to policy, eligibility criteria, risk management, investor grievances, inspection, enforcement, claims for SBU in GIFT-IFSC would be specified under the regulatory framework issued by the regulatory authority concerned and all activities of the SBU in GIFT-IFSC would be under the ...

BSE seeks Sebi approval to launch monthly contracts for several indices

Since September 2024, the exchange has launched 20 indices based on market capitalisation, weightage, and sector classification

Sebi chief rejects aptitude test for retail traders in F&O segment

Markets regulator Sebi Chief Tuhin Kanta Pandey has ruled out the possibility of an aptitude test for retail traders wanting to participates in the Futures & Options (F&O) segment, saying it is impractical and prone to regulatory overreach. The Securities and Exchange Board of India (Sebi) had earlier introduced measures in November last year in a bid to curb excess speculation in derivatives. These regulatory steps came in the wake of a Sebi study that revealed a staggering 9 out of 10 retail investors lose money while trading in F&O instruments. When asked about the industry's suggestion of introducing tests for retail investors before permitting them to trade in risky derivative products, Pandey clarified the regulator's stance. "Right now, we aren't really considering any of those things." He explained the concerns of practicality and effectiveness behind such proposals. "Number one, we have to also see, will it be a regulatory overreach? Will you be able to ...

Sebi cracks down on three YouTubers for misleading investment content

Markets regulator Sebi on Wednesday barred three individuals from the securities markets for five years for allegedly misleading investors through YouTube videos to buy shares of Atlantaa. The regulator slapped a penalty of Rs 50 lakh on Manish Mishra and Rs 10 lakh each on Vivek Chauhan and Ankur Sharma. The markets watchdog also directed Mishra and Sharma to disgorge the unlawful gains worth Rs 10.38 lakh that they had pocketed and deposit the amount in the Investor Protection and Education Fund (IPEF) within 45 days of the order. "...the noticees 1, 2 and 5 (Manish Mishra, Vivek Chauhan and Ankur Sharma) have colluded and engaged in a coordinated scheme to upload misleading videos to induce investors to trade in shares of the company and in doing so, they have violated PFUTP (prohibition of fraudulent and unfair trade practices) regulations," Sebi said. Sebi observed that Manish Mishra had made illegal profit of Rs 4.37 lakh and Ankur Sharma had made illegal profit of Rs 6.01 la

Sebi proposes framework for winding down of KYC registration agencies

In a consultation paper, Sebi emphasised that the framework must guarantee uninterrupted services, protection of investor KYC data, and the fulfilment of statutory and contractual obligations

Sebi imposes Rs 10 lakh penalty on Future Retail for disclosure gaps

Capital markets regulator Sebi on Thursday slapped a fine of Rs 10 lakh on Future Retail Ltd for making inadequate and delayed disclosure regarding the interim order passed by Singapore International Arbitration Centre (SIAC). The order came after the Securities and Exchange Board of India (Sebi) examined the concerns raised by Amazon.com regarding the Scheme of Arrangement between Future Group and Mukesh Dhirubhai Ambani Group. In its order, Sebi said Future Retail had disclosed the initiation of arbitration proceedings by Amazon before SIAC on November 1, 2020, only after intervention of stock exchanges. The information should have been disclosed within 24 hours of the event -- on or before October 6, 2020 -- as required under the LODR (Listing Obligations and Disclosure Requirements) rules. It was observed that the interim order passed by SIAC on October 25, 2020 was in favour of Amazon, wherein the respondents were injuncted from taking any steps in furtherance or in aid of the

Taxpayers barred from claiming deductions on Sebi, CCI settlement costs

The income tax department on Thursday said taxpayers will not be allowed to claim deduction for expenditures incurred to settle proceedings initiated under four laws, including the Sebi and the Competition Act. In a notification issued on April 23, the Central Board of Direct Taxes (CBDT) notified that any expenditure incurred to settle proceedings initiated in relation to contravention or defaults under the four specified laws shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure. The four laws are the Securities and Exchange Board of India Act, 1992; the Securities Contracts (Regulation) Act, 1956; the Depositories Act, 1996; And the Competition Act, 2002.

Sebi revises NAV cut-off timings for MF overnight scheme redemptions

Markets regulator Sebi on Tuesday announced a change in cut-off timings to determine the net asset value (NAV) with respect to repurchase or redemptions of units in overnight schemes of mutual funds. The changes will allow time for stock brokers (SBs), or clearing members (CMs) to un-pledge units of Mutual Fund Overnight Schemes (MFOS) and place redemption requests with mutual funds, after the close of market hours. For applications received up to 3 pm, the closing NAV of day immediately preceding the next business day will be applicable. For applications received after 3 pm, the closing NAV of the next business day will be applicable, Sebi said in its circular. However, in case application is received through online mode, the cut-off timing of 7 pm will be applicable for overnight fund schemes, it added. The new timings will become effective from June 1. Investment in Mutual Fund Overnight Schemes (MFOS) is a new avenue made available to stock brokers or clearing members to deplo

Sebi finds only 2-3 labourers, no EV production at Gensol's Pune unit

Markets regulator Sebi has said it found "no manufacturing activity" at Gensol Engineering's electric vehicle (EV) plant in Pune with only 2-3 labourers present when a National Stock Exchange (NSE) official visited the site. These revelations were part of markets regulator Sebi's interim order issued on April 15 following a complaint received in June 2024 alleging manipulation of Gensol's share price and misappropriation of funds. In its order, the Securities and Exchange Board of India (Sebi) found discrepancies as well as misleading disclosures to investors by Gensol Engineering, a company promoted by brothers Anmol Singh Jaggi and Puneet Singh Jaggi. One of the disclosures came from an investigation conducted by the NSE, which revealed a lack of manufacturing activity at Gensol's EV plant -- Gensol Electric Vehicle Private Ltd -- at Chakan in Pune. During a site visit to the facility on April 9, an NSE official found only 2-3 labourers present. "It was found that there was no .

Sebi investigation into BluSmart likely to slow Uber's EV push in India

Uber's EV ambitions in India are focused on accelerating the shift to zero-emission mobility, with a goal of electrifying every ride on its platform by 2040

Sebi proposes higher mutual fund investment limits in Reits, InvITs

The move aims to provide greater diversification opportunities for mutual fund schemes while increasing capital inflows and liquidity in these relatively new instruments

Working to 'sort out issues' of NSE's IPO, says Tuhin Kanta Pandey

The country's largest exchange first applied for a listing in 2016 but faced a long-running case over equitable access for its trading members

Sebi to review ESG disclosures for listed firms, says Tuhin Kanta Pandey

India has fared poorly on ESG scores, with Moody's Ratings classifying the country in the high risk category on environment and social factors