Page 113 - Sebi

SAT quashes Sebi's Rs 7 lakh fine against RIL's Jio Financial Services

The Securities Appellate Tribunal (SAT) on Wednesday quashed a Sebi order imposing a penalty of Rs 7 lakh on Jio Financial Services Ltd in case of alleged manipulation in certain trades in long-dated Nifty options in 2017. Earlier this year, Reliance Industries Ltd (RIL) demerged its financial services undertaking into Reliance Strategic Investments Ltd (RSIL) and renamed it as Jio Financial Services Ltd (JFSL) -- formerly known as Reliance Strategic Investments Ltd. The case pertains to certain trades in long-dated Nifty options between Reliance Strategic Investments and Morgan Stanley France SA done back in 2017. The order came after the Reliance group company approached the appellate tribunal against an order passed by Securities and Exchange Board of India (Sebi) in June 2017. In the order, the regulator levied a fine of Rs 7 lakh on the company. Setting aside the Sebi's order, a bench consisting of Justice Tarun Agarwala and Presiding Officer Meera Swarup, said the regulator h

Sebi tweaks rule on upstreaming clients' funds by brokers to clearing corps

To promote ease of doing business, capital markets regulator Sebi on Tuesday tweaked the framework requiring stock brokers or clearing members to upstream clients' funds to clearing corporations. This came after Sebi received representations from various stakeholders -- stock brokers, and brokers' associations citing certain operational difficulties in implementation of the framework. Addressing the issue, Sebi said that stock brokers (SBs) or clearing members (CMs) will upstream all the clients' clear credit balances to clearing corporations (CCs) on the End of Day (EOD) basis. Such upstreaming will be done only in the form of either cash, lien on Fixed Deposit Receipts (FDRs) created out of clients' funds, or pledge of units of Mutual Fund Overnight Schemes (MFOS) created out of clients' funds. Stock brokers are required to maintain designated client bank account to receive funds from their clients. The nomenclature of all such accounts will be changed to either of the two ...

Sebi halts Religare Commodities' registration in NSEL paired contracts case

Markets regulator Sebi on Tuesday suspended the registration of brokerage firm Religare Commodities for its alleged involvement in illegal paired contracts on the now defunct National Spot Exchange Ltd (NSEL). By providing access for taking exposure to 'paired contracts', the brokerage exposed its clients to the risk involved in trading in a product that did not have regulatory approval, Sebi said in its order. Further, the regulator said the trading activities of the noticee (Religare Commodities) in 'paired contracts' for its clients on the NSEL platform have serious ingredients jeopardising the competence and integrity of the noticee in the securities market. Accordingly, Sebi has suspended the registration of Religare Commodities as a commodities derivative broker, for three months from the date of this order or till the FIR filed against the broking firm by EOW (Economic Offences Wing) ceases to be pending or till the noticee is acquitted by a court about the FIR, whichever is

Muthoot Microfin to launch Rs 960 crore maiden IPO on December 18

Muthoot Microfin, the microfinance subsidiary of Muthoot Pappachan group, is set to float its Rs 960 crore initial public offering (IPO) on December 18. The maiden public issue will conclude on December 20 and the one-day bidding for the anchor investors will open on December 15, according to the red herring prospectus (RHP). The microfinance institution's initial share sale comprises a fresh issue of equity shares worth Rs 760 crore and an offer for sale (OFS) aggregating up to Rs 200 crore. Those selling shares through the OFS are -- Greater Pacific Capital WIV Ltd and promoters -- Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas and Nina George. The company plans to use proceeds from the fresh issue for augmenting its capital base, to meet future capital requirements. Delhi-based Muthoot Microfin is promoted by Muthoot Fincorp, which is the third-largest gold loan player and the flagship firm of Muthoot Pappachan group. ICICI ...

Desperate retail investors drive India's futures and options craze

The Securities and Exchange Board of India's crackdown on social-media influencers peddling advice is a losing battle.

Sebi specifies process to follow for dematerialising units of AIFs

Capital markets regulator Sebi on Monday specified the process to be followed for dematerialising the units issued, in cases where investors are yet to provide demat account details to Alternative Investment Funds (AIFs). Under the rules issued in June, AIFs with a corpus of Rs 500 crore or more were required to dematerialise all issued units by October 31, 2023. Further, these AIFs will have to issue units only in dematerialised form from November 1, 2023, onwards. Similarly, AIFs with less than Rs 500 crore corpus will have to dematerialise issued units by April 30, 2024, and issue only dematerialised units May 1 onwards. The dematerialisation of AIF units is seen as a significant move towards digitisation, fostering transparency, and enabling effective monitoring of transactions in the financial landscape. In a circular on Monday, Sebi said managers of AIFs will continue to reach out to existing investors to obtain their demat account details and credit the units issued to them

Inox India, DOMS Industries among 5 companies to crowd IPO lane this week

The IPO lane is getting crowded as five companies, including India Shelter Finance and DOMS Industries, have lined up public offers this week on favourable market conditions. The other three companies whose maiden public issues are slated to open are Inox Group entity Inox India, Jaipur-based retail jewellery company Motisons Jewellers and Mumbai-based Suraj Estate Developers, according to their Red Herring Prospectus (RHPs). Together, these companies are estimated to raise at least Rs 4,200 crore. This comes on the back of 10 companies successfully concluding their maiden public issues last month. The list included the IPO (Initial Public Offerings) of Tata Technologies, which was the first company from the Tata Group to float an initial share sale in nearly two decades. Tata Consultancy Services was the last IPO from the group in 2004. Overall, the Indian IPO market witnessed more than 44 issues that collected around Rs 35,000 crore in the current fiscal FY24 (till November).

Sebi to introduce fast track concept for public issuance of debt securities

To deepen the bond market, Sebi is looking to introduce the concept of 'fast track' public issuance for debt securities and further reduce the face value of debt securities, including non-convertible debentures, issued on a private placement basis to Rs 10,000 from Rs 1 lakh at present. If implemented, the move would also promote ease of doing business. "The main intention of a fast track public issuance of debt securities is to facilitate frequent issuers with a consistent track record, to make public issues of debt securities with reduced time, cost and effort," Sebi said in its consultation paper. To further enhance the participation of the non-institutional investors in the corporate bond market, Sebi has "proposed to permit issuers to launch NCDs (non-convertible debentures) or NCRPS (non-convertible redeemable preference shares) with the face value of Rs 10,000". However, in such cases, the issuer should appoint a merchant banker who would carry out due diligence for issuance

Sebi to frame rules for REITs, InvITs issuing subordinate units to sponsors

Capital markets regulator Sebi is looking to come out with a framework for the issuance of subordinate units by REITs and InvITs to sponsors and their associates. Additionally, the regulator has proposed a framework for unit-based employee benefits (UBEB) in the context of REITs (real estate investment trusts) and InvITs (infrastructure investment trusts). The Securities and Exchange Board of India (Sebi) has sought comments from the public till December 29 on the proposals. Under the proposed framework, subordinate units can be issued only to the sponsor, its associates and sponsor group, such units should carry only inferior voting as compared to ordinary units and the units can be issued to the eligible entities in the initial offer or in any offering subsequent to the initial offer, Sebi said in its consultation paper. It further suggested that subordinate units can only be transferred inter-se amongst the sponsor entities. "Any issuance of subordinate units post initial offer

Sebi looks to introduce new 'high-risk' investment vehicle, says Buch

The proposed category will likely have a higher minimum investment threshold but lower than that of PMS

Sebi to focus on sachetising SIPs by making Rs 250 bets viable: Buch

Sebi chairperson Madhabi Puri Buch on Friday said the capital markets regulator wishes to sachetise mutual fund investments going forward. Speaking at an event hosted by Business Today here, Buch said the mutual fund industry feels investments of Rs 500 per month in a systematic investment plan are viable, but Rs 250 are not and the focus will be to try to look at ways of making such investments rewarding. "We are working with them (MF industry) to see where is the cost, what can Sebi do to facilitate making it possible to bring that viability down to Rs 250 a month, because then it is the equivalent of what Hindustan Lever did with shampoo sachets. You just explode the market," Buch said. The comments come on a day the MF industry reported its highest-ever monthly investments through SIPs at over Rs 17,000 crore for November. It also comes amid expectations of an aggressive entry by the Reliance Group entity Jio Financial Services into the MF space. Buch said such sachetisation wi

Ready to introduce same-day settlement of trades by March 2024: Sebi chief

Sebi chief Madhabi Puri Buch on Friday said the capital markets regulator is ready to introduce same-day settlement of trades on the stock exchanges by March 2024. Speaking at the Global Economic Policy Forum 2023 organised by the Confederation of Indian Industry (CII), Buch said, "We are ready to introduce T+0 (T plus zero) settlement trade by the end of the current fiscal". The regulator, which has already reduced the settlement timelines to as short as one day after the transaction, is now looking to shorten the same further. The Sebi chief talked about the T+1 regime that has been implemented in the market. Earlier this year, the country's stock markets transitioned from T+2 to T+1 settlement, settling trades on the following business day. "It takes two things to make this happen. First is technology and second is co-creation. We are now moving to T+0 which will happen before the end of this financial year and one year from there we will have instantaneous settlement, which is

Sebi is looking to create a new asset class, says Madhabi Puri Buch

Capital markets regulator Sebi is looking to create a new asset class -- which lies between mutual funds and portfolio management services (PMS) -- and the new product can cater to high-risk investors, its chief Madhabi Puri Buch said on Friday. The Sebi chief said that there is a spectrum of asset classes for investors. Of these, "mutual funds are the highly retail investors, then you have in between a PMS and then you have AIF (alternative investment fund) for private equity". "We feel there is room for an additional asset class somewhere between mutual funds and PMS... Sebi is looking into a whole new asset class," Buch told reporters here at the sidelines of a CII event. In October, mutual funds industry body AMFI clarified that the idea of introducing a new asset class, which lies between mutual funds and PMS, was at a "very nascent stage". According to the industry body, there was a deliberation within the industry for an instrument that caters to investors who are looking fo

Sebi chief deeply regrets failure to de-freeze shares in Kirloskar case

Sebi chief Madhabi Puri Buch on Friday said the capital markets regulator deeply regrets the failure to de-freeze the shares held by members of the Kirloskar family in Kirloskar Industries Ltd (KIL) despite the SAT's directive. "I think what happened in terms of delay in de-freezing accounts was unacceptable. Whatever have been the cause and root cause, communications with the depository etc., Sebi was responsible, Sebi was accountable, we deeply regret what happened," Buch told reporters at the sidelines of the CII Global Economic Policy Forum here. Further, she said that the Securities and Exchange Board of India (Sebi) has already initiated a full process review in this regard. "Within 30-45 days. We will revamp the process. So that risk of this happening again is completely minimised," she added. The comments came after the Securities Appellate Tribunal (SAT) pulled up Sebi on Monday for failing to de-freeze the shares held by members of the Kirloskar family in Kirloskar ...

Sebi to introduce ASBA-like facility for secondary mkt trading from Jan-Feb

To safeguard investors' money from misuse, an ASBA-like facility for trading in secondary markets will be available from January or February, Sebi chief Madhabi Puri Buch said on Friday. This Application Supported by Blocked Amount (ASBA)-like facility already available for the primary market, ensures that the investor's fund gets moved only when the allotment is completed. Now, the facility will be available for the secondary market from January or February, the Sebi chairperson said at the CII Global Economic Policy Forum here. The move could also help investors to save as much as Rs 3,500 crore annually, she added. Under the framework, funds will remain in the client's account but will be blocked in favour of the Clearing Corporation (CC) till the block mandate expires or till the block is released by the CC, or debit of the block towards obligations arising out of the trading activity of the client, whichever occurs first. Further, settlement for funds and securities will be d

India moving towards T+0 for market settlement before end-FY24: Sebi

Currently trades in India are settled in "T+1" or one day after the trades are initiated. T+0 would mean settlements in the same day and instant settlement would ensure trades are settled immediately

Sebi lays down framework for calculation of Net Distributable Cash Flows

To promote ease of doing business, capital markets regulator Sebi on Wednesday decided to standardise the framework for calculation of available net distributable cash flows by REITs, InvITs and their respective holding companies. The new framework will be applicable from April 1, 2024, the Securities and Exchange Board of India (Sebi) said in two separate circulars. Under the rules, the Net Distributable Cash Flow (NDCF) is computed at the level of real estate investment trusts (REITs), and infrastructure investment trusts (InvITs) and their holding companies (HoldCo) or special purpose vehicles (SPVs). Further, the minimum distribution should be 90 per cent of the NDFC at the Trust level as well as the HoldCo/SPV level. This is subject to applicable provisions in the Companies Act or the Limited Liability Partnership Act. Sebi said that the option to retain 10 per cent distribution needs to be computed by taking together the retention done at SPV level and Trust level. "Further,

'Sebi, RBI share concern about some credit funds masking bad loans'

Private credit funds fall under the broad category of AIFs for the purpose of regulations in India

Murky use of private credit funds may invite harsh regulatory scrutiny

Investors who pooled money were issued senior securities, earning them interest

Adani Group completes acquisition of Sanghi Industries, revises offer price

Billionaire Gautam Adani-owned Ambuja Cements Ltd on Tuesday announced the completion of the acquisition of Sanghi Industries Limited (SIL), at a revised offer price of Rs 121.90 per share. Earlier in August this year, Ambuja Cements Ltd (ACL) had offered a price of Rs 114.22 apiece for acquiring 26 per cent equity shares of Rs 10 each of Sanghi Industries from its public shareholders. "In terms of the company's obligations under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 ('Takeover Regulations'), the offer price as defined in the PA shall stand revised to Rs 121.90," Ambuja Cements said in a regulatory filing. Meanwhile, shares of Sanghi Industries were trading at Rs 129.90 during the afternoon on Tuesday, which is 6.56 per cent higher than the revised offer price. ACL in a separate statement informed that it "successfully completes acquisition of Sanghi Industries, funded entirely through internal accruals" at an enterprise value of Rs 5,185 ...