Page 123 - Sebi

Sebi slaps Rs 6 cr fine on DHFL's former promoters for disclosure lapses

Capital market regulator Sebi on Wednesday imposed penalties totalling Rs 6 crore on 15 entities, including Kapil Wadhawan and Dheeraj Wadhawan, for flouting disclosure norms in the case of Deewan Housing Finance Corp Ltd (DHFL). Wadhawans are the former promoters of DHFL. The fines need to be paid jointly and severally within 45 days, the Securities and Exchange Board of India (Sebi) said in an order. In its 82-page order, Sebi said the promoters, including Kapil Wadhawan and Dheeraj Wadhawan, suppressed the names of three companies -- Hemisphere Infrastructure India, Galaxy Infraprojects and Developers, and Silicon First Realtors -- which were directly or indirectly being held by the promoters of DHFL. These three companies were shown as part of public shareholders instead of being part of the promoter and promoter group of DHFL. Sebi noted that the entities being promoter or promoter group and PACs (Persons Acting in Concert) having control over DHFL were under an obligation t

Mutual funds attract 6% of household savings in FY23, shows RBI data

Fiscal sees a record Rs 1.8 trillion net inflows from households

Sebi to relax rules around mandatory borrowing from corporate bond market

Regulator could also clear framework for index providers; decisions likely at Thursday's board meet

Goldman Sachs pays Rs 26.44 lakh to settle FPI violation case with Sebi

Goldman Sachs (Singapore) Pte has settled with capital markets regulator Sebi a case pertaining to certain discrepancies in the monthly ODI (offshore derivative instruments) reporting after paying Rs 26.44 lakh towards the settlement amount. The order came after Goldman Sachs, a registered Foreign Portfolio Investor (FPI) which deals in off-shore derivative instruments, proposed to settle the alleged violations by "neither admitting nor denying" under the settlement rules. "It is hereby ordered that any proceedings that may be initiated for the violations... are settled in respect of the applicant (Goldman Sachs (Singapore) Pte)," the Securities and Exchange Board of India (Sebi) said in a settlement order passed on Monday. In its order, the regulator observed that certain discrepancies in the monthly ODI reporting for the month of March 2022 were identified by the applicant. These were related to a mismatch of investment managers for multi-managed clients with respect to four ODI

Sebi imposes Rs 35 lakh fine on MI Research for flouting regulatory norms

Capital markets regulator Sebi has imposed a fine of Rs 35 lakh on MI Research for violating regulatory norms. MI Research (Proprietor -- Ashish Jain) is a Sebi-registered Investment Adviser. The order came after Sebi conducted an examination into the business of MI Research with respect to compliance of the entity with IA (Investment Advisers) regulations. The period of examination was November 2017 to August 2019. In its order on Monday, Sebi found that MI Research had collected up to Rs 1.95 crore from 748 clients by charging them for services provided as an investment adviser. The quantum of fees charged for its services appears to be unreasonably high. However, the noticee (MI Research) had failed to comply with the basic requirements of IA rules and also promised assured returns and mis-sold his services to clients and thus, failed to act honestly and in good faith with due skill, care and diligence, and adhered to a high professional standard, appropriate standards of condu

Domestic mutual funds anchoring more listings as issue sizes shrink

Have subscribed to shares worth Rs 2,850 cr as 'cornerstone investors' in 20 IPOs so far in FY24

Sebi to auction property of Saradha Group's property on October 17

Market regulator Sebi has said it will auction the property of the Saradha Group of companies next month at a reserve price of over Rs 3 crore to recover money raised by the firm from the public through illicit schemes. The property located in West Bengal will go under the hammer, the Securities and Exchange Board of India (Sebi) said in a notice dated September 15. The regulator said the e-auction will be conducted between 11 am and 1 pm on October 17. The reserve price of the property is pegged at Rs 3.68 crore. Sebi has engaged Quikr Realty to assist it in the sale of the property and appointed C1 India as the e-auction provider. The development came after the Calcutta High Court passed an order in June 2022, whereby it directed the regulator to proceed with the auction of properties of the Saradha Group of Companies. Saradha Group, a consortium of over 239 private companies, allegedly ran chit-fund operations in West Bengal, Assam and Odisha, and raised around Rs 4,000 crore f

Are private sector executives better than bureaucrats for regulators' job?

Former RBI Governor Bimal Jalan said it is better if the person's expertise is considered than whether he/she is a bureaucrat or a private sector executive

Sebi levies Rs 65 lakh fine on 5 individuals for insider trading violation

Sebi on Monday levied fines totalling Rs 65 lakh on five individuals for flouting insider trading norms in the matter of ABC Bearings Ltd. The regulator slapped a fine of Rs 20 lakh on Jaisingh Sudhirkumar Choudhary, Rs 15 lakh on Menal Rasesh Parikh and Rs 10 lakh each on Himanshu K Desai, Anirudh R Parikh and Sudhirkumar Choudhary. The order came after Sebi conducted a detailed investigation into the matter to ascertain whether trading was done in the scrip of ABC Bearings by certain suspected entities on the basis of unpublished price-sensitive information (UPSI) relating to the merger of ABC Bearings with Timken India Ltd for the period January-July 2017. In its order, the Securities and Exchange Board of India found that Himanshu, who had been representing Parikh & Shah (P&S), the statutory auditor of ABC Bearings had attended meetings pertaining to the proposed merger and was in possession of UPSI, therefore he was an insider. "I note that Himanshu had access to UPSI ...

Maharashtra govt issues order for implementation 'adopt a school' scheme

The Maharashtra government on Monday issued an order for the implementation of its 'Adopt a School' scheme. Any individual, organisation or private enterprise having SEBI registered Corporate Social Responsibility (CSR) certificate can adopt a school currently run by the state government, Zilla Parishad or municipal councils irrespective of its medium of instruction, the order from the state's school education said. Those adopting schools can also add a name of its choice to the existing name of the school for the given period, the government resolution said, adding that period of adoption could be for five or ten years only. "For schools located in A and B category municipal corporations such as Brihanmumbai Municipal Corporation or Pune Municipal Corporation, those seeking to adopt will have to pay Rs 2 crore for five years or Rs 3 crore for 10 years," an official said. The money will be utilised for physical infrastructure, including repair works of school building, colouring, .

Rearview mirror investing can be perilous in floating-rate funds

Investors should opt for them when rates are expected to climb, not now when they are largely over

Congress prods SEBI to act against Adani firms, demands probe by JPC

The Congress on Saturday questioned SEBI's move of not acting on money laundering allegations against "Adani-linked entities" and called for the formation of a joint parliamentary committee to discuss the issue during the special session of Parliament. Congress general secretary Jairam Ramesh wondered whether SEBI will act now that the Mauritius financial regulator has revoked the licences of two such entities. He also raised his doubts about the credibility of the Securities and Exchange Board of India, asking why the body has failed to inspire confidence as a fair regulator of capital markets in the country. Ramesh said that the Financial Services Commission (FSC), the Mauritian equivalent of SEBI, revoked the licences of the controlling shareholder of two Adani-linked funds in May 2022 for violating several laws including the Financial Services Act, the Securities Act, the Financial Intelligence and Anti-Money Laundering Regulations (2003 and 2018), and the Code on the Prevention

SAT stays Sebi's directions in open offer for Federal-Mogul Goetze

In a letter dated 30 August, the market regulator appointed MM Nissim & Co as an independent chartered accountant to value the shares of Federal-Mogul Goetze for the open offer

Sebi revokes Brickwork's wind up order, bars taking clients for 6 months

Capital markets regulator Sebi has revoked its wind up order against Brickwork Ratings India and barred the credit rating agency to onboard new clients for a period of six months. In June, the Securities Appellate Tribunal (SAT) set aside a Sebi ruling cancelling the licence of the credit rating agency and asked the regulator to pass a fresh order. Brickwork Ratings India Pvt Ltd is a Sebi and RBI-accredited registered credit rating agency. In an order on Wednesday, the markets regulator directed Brickwork Ratings India to strengthen its board and appoint an "independent professional chief executive officer and an independent director as chairperson". It has also directed Brickwork to increase the number of directors to nine from the current five and ensure that the new members of the newly constituted board are unconnected to the present management/founders of the company. According to Sebi, the credit rating agency will ensure that members of the founding management are not part

Sebi issues revised quarterly reporting for Alternative Investment Funds

Markets regulator Sebi on Thursday issued a revised quarterly reporting format for Alternative Investment Funds (AIFs) to ensure compliance and uniformity. The quarterly reporting format has been reviewed in consultation with the industry associations such as Indian Venture and Alternate Capital Association (IVCA) and Equalifi, Sebi said in its circular. The revised reporting format will be uploaded by AIF associations on their website within two working days of the issuance of the circular. Further, these associations will also provide assistance to AIFs in understanding and addressing the reporting requirements, Sebi said. AIFs will have to submit their quarterly reports online via Sebi intermediary portal (SI portal) within 15 calendar days from the end of each quarter. However, this schedule needs to be followed December quarter onwards, the regular said. To facilitate a smooth transition, the association will work with all AIFs to ensure that the trial run of the revised ...

SAT adjourns hearing on Zee promoter Punit Goenka's appeal to Sept 27

Arguing on behalf of Goenka, senior counsel Abhsihek Manu Singhvi pointed that there had been no loss to Zee and no gain to Goenka in the alleged matter

Entero Healthcare Solutions files draft papers with Sebi to introduce IPO

Healthcare products distributor Entero Healthcare Solutions has filed preliminary papers with capital markets regulator Sebi to mop-up funds through an Initial Public Offering (IPO). The IPO comprises a fresh issue of equity shares worth up to Rs 1,000 crore and an Offer For Sale (OFS) component of up to 85.57 lakh equity shares, according to the Draft Red Herring Prospectus (DRHP), which was filed on Wednesday. According to investment banking sources, the IPO is expected to be worth Rs 1,000 crore. Those selling shares in OFS are promoters Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius Ltd, and other shareholders Chethan M P, Deepesh T Gala, Hemant Jose Barros, Hemant Jaggi, K R V S Varaprasad, K E Prakash and Lavu Sahadev. The company may also consider a pre-IPO placement aggregating up to Rs 200 crore, and if such a placement is completed, the size of the fresh issue will be reduced. Net proceeds from the fresh issue to the tune of Rs 123.67 crore will be used towa

Sebi tells Brickwork to appoint professional CEO, strengthen board

Brickwork will also have to ensure their chief regulatory officer, analysts and persons involved in the rating process undergo in-depth training

Adani-Hindenburg row: Former contractor witness to how money was shifted

Ajay Kumar Agarwal has sought permission from the Supreme Court to intervene in the investigations by the Sebi against the Adani Group

UPI moment for markets: In 21 yrs, Sebi shortened trade settlements to T+1

The T+1 hour trade settlement cycle will put India at the top of the settlement deck among the prominent stock markets