Page 129 - Sebi

Regulator Sebi proposes to ease norms for borrowings by large corporates

The present norms require large corporates to raise 25 per cent of their incremental borrowings in a financial year by way of issuance of debt securities

Dark fibre case: SAT quashes Sebi's order on NSE and ex-officials

The tribunal concluded that no preferential treatment was granted and there was no intentional negligence on the part of the NSE by waiving physical inspection of the office site of Way2Wealth

SAT partly set aside Sebi's order against NSE in unlit fibre case

The Securities Appellate Tribunal (SAT) has set aside a markets regulator Sebi's order directing the National Stock Exchange (NSE) to disgorge Rs 62.6 crore, along with interest, in the dark-fibre case. However, all other orders passed against NSE, comprising a periodic review of its co-location facility, putting in place comprehensive guidelines, Standard Operating Procedures and protocols with respect to its co-location facility were found appropriate and were upheld, according to an SAT order. In addition, the appellate tribunal has quashed Sebi's direction barring NSE's former MD and CEO Chitra Ramkrishna from holding any managerial positions in a market intermediary for three years and three other former officials --Ravi Varanasi, Nagendra Kumar and Devi Prasad Singh -- for a period of two years. The case relates to the alleged differential access given to certain broking firms in the form of 'dark fibre' at NSE, to connect across the co-location facilities before other ...

Sebi cancels registration of 2 firms in NSEL paired contracts case

Capital markets regulator Sebi on Wednesday cancelled the registration of two brokerage firms -- Pinnacle Brocom and Padmakshi Commodities -- for facilitating its clients to trade in illegal paired contracts on the now defunct National Spot Exchange Ltd. The trading activities of the brokers in paired contracts for its clients on NSEL platform have serious ingredients jeopardising the reputation, belief in competence, fairness, honesty, integrity and character in the securities market, Sebi's Executive Director V S Sundaresan said in two separate orders. The regulator has asked the brokers to allow its existing clients to transfer their securities or funds held in its custody within 15 days. In case of failure of any clients to withdraw or transfer their securities or funds within this period, the brokers will transfer the funds and securities of such clients to another broker within a period of the next 15 days there from under advice to the clients. In September 2009, NSEL ...

Shorter IPO timeline to become effective from December 1, says Sebi

At present, it takes six working days (T+6) for an IPO to list

Fractional ownership platforms for real estate seek lower holding threshold

Also seek exposure to under-construction projects; Sebi to formalise framework soon

Sebi reduces timeline for listing shares to T+3 from T+6 from December 1

The Securities and Exchange Board of India (Sebi) said that with T as the issue-closing date, the securities will now have to be listed on T+3 day versus the current T+6 day

Panel to decide reversal of erroneous transfers in demat accounts

Depositories approached Sebi, highlighting the challenges faced concerning obtaining OTP for such trade reversal

Sebi plans to issue norms for dealing with unclaimed funds of clients

Markets regulator Sebi plans to come out with a detailed procedure for dealing with unclaimed funds of clients lying with the stock brokers, whereby such trading members will make attempts to find out the whereabouts of the investors for return of money. In case the end client is not traceable despite the efforts of the Trading Member (TM), the unclaimed funds would be transferred to investor protection funds of stock exchanges on a periodic basis, the Securities and Exchange Board of India (Sebi) said in its annual report for 2022-23. This will ensure that unclaimed funds of clients lying with the TMs are returned to the respective clients in a timely and efficient manner. "It is proposed to have a detailed procedure for treatment of unclaimed funds of clients lying with the TMs, in which the TMs shall make efforts to find out the whereabouts of the clients for return of such funds," Sebi said. In September 2022, Sebi directed all entities, which have listed non-convertible ...

MFs step up buying as FPI flows thin out; other DIIs remain sellers

Invest Rs 7,700 crore in July, highest in four months

Sebi slaps Rs 20 lakh fine on 4 individuals for non-genuine trades

Sebi on Tuesday slapped fines totalling Rs 20 lakh on four individuals for indulging in non-genuine trades in the illiquid stock options segment on BSE. In four separate orders, the regulator imposed a fine of Rs 5 lakh each on Manish Kumar Kanodia, Seeta Devi Agrawal, Seema Charul Maisheri and Chandrani Dutta. The Securities and Exchange Board of India (Sebi) had observed large-scale reversal trades in the illiquid stock options segment on BSE, leading to artificial volumes on the exchange. The regulator conducted an investigation into the trading activities of certain entities engaged in the segment from April 2014 to September 2015. The four individuals that have been fined on Tuesday were among those who indulged in the execution of reversal trades. Reversal trades are alleged to be non-genuine in nature as they are executed in the normal course of trading, which leads to a false or misleading appearance of trading in terms of generating artificial volumes, the regulator said.

Sebi provides facility to remedy erroneous transfers in demat accounts

Capital markets regulator Sebi on Tuesday decided to provide a facility for exemption from one-time password (OTP) to facilitate the reversal of erroneous transfers of securities in demat accounts. Under the rule, all off-market transfer of securities will be permitted by the depositories only by the execution of a physical Delivery Instruction Slip (DIS) duly signed by the client himself/herself or by way of electronic DIS. The depositories also put in place a system of obtaining the client's consent through OTP for such off-market transfer of securities from the client's demat account. The facility came after Sebi received representations from depositories regarding the challenges being faced with regard to obtaining OTP in case of reversal of erroneous transfers in the demat accounts, and was requested to address the issue. "It is decided that a well-balanced and operational mechanism for exemption from OTP may be provided for reversal of such erroneous transfers in the demat ..

Sebi categorises dues worth Rs 73,287 crore as 'difficult to recover'

Capital markets regulator Sebi has segregated dues to the tune of Rs 73,287 crore under "difficult to recover" category at the end of March 2023. Overall, the markets watchdog has dues worth Rs 1.02 lakh crore that needs to be recovered from entities, including those that failed to pay the fine imposed on them, or were unable to pay fees due to it and did not comply with its direction to refund investors' money, according to Sebi's annual report for 2022-23, which was released on Monday. Of Rs 1.02 lakh crore, Rs 63,206 crore, which is 62 per cent of the total amount, pertains to collective investment scheme and deemed public issues of PACL Ltd and Sahara Group company Sahara India Commercial Corporation Ltd. Further, the regulator said parallel proceedings are pending before various courts and court-appointed committees in 77 cases involving Rs 70,482.62 crore, or 69 per cent of the total amount. "In these cases, Sebi's recovery proceedings are subject to directions/approvals of .

Sebi looks to introduce disclosure requirements for unlisted companies

Capital markets regulator Sebi is looking to introduce disclosure requirements for unlisted companies, which are part of a business conglomerate. While listed entities are subject to comprehensive disclosure requirements, the same levels of disclosure requirements are not applicable for unlisted companies. "There is a need to identify, monitor and manage risks introduced into the securities market ecosystem by unlisted companies in a conglomerate with a complex set of listed and unlisted associates," Sebi said in its annual report for 2022-23. Also, the regulator plans to facilitate transparency around the conglomerate by enhancing the group-level reporting of transactions. "Disclosure of details of cross-holding and material financial transactions within the conglomerate are also some of the matters that Sebi would examine to be disclosed on an annual basis," the annual report noted. The country's top business conglomerates include Tata Group, Reliance Industries, Adani Group, Ad

Person giving advice to overseas clients exempted from registration: Sebi

Any person who provides investment advice to clients exclusively based out of India is exempted from seeking registration under the rules governing investment advisor (IA), capital markets regulator Sebi has said. However, if the person gives investment advice to Non-Resident Indians (NRIs) and Person of Indian Origin (PIOs) then he or she will fall under the purview of IA rules and need to obtain a registration certificate, Sebi said in the list of frequently asked questions on investment advisers uploaded on its website on Tuesday. Further, Sebi said that registered investment advisers can give investment advisory services to foreign portfolio investors (FPIs). An investment adviser gives investment advice relating to buying selling or dealing in securities such as shares, debentures, bonds, derivatives, securitised instruments, units of AIF (alternative investment fund), REIT (real estate investment trust) and InvIT (infrastructure investment trust). While dealing in distributio

Sebi sets reform agenda for FY24; proposes digital assurance, voting norms

Anxiety about governance not in anyone's interest, says Sebi chair in annual report address

Sebi's success rate before Securities Appellate Tribunal improves

The regulator saw a remarkable drop in the number of pending cases -- from 426 at the end of FY22 to just 160 in FY23

Sebi 'implementation standard' pilot for verification requirements starts

The exercise is to ease implementation of new and existing regulations of Sebi

Sebi's refund to Sahara investors reach to Rs 138.07 cr in 11 yrs

Sebi has made refunds of Rs 138.07 crore to investors of two Sahara companies in 11 years, while the amount deposited in specially-opened bank accounts for the repayment has surged to more than Rs 25,000 crore. These disclosures have been made by the Securities and Exchange Board of India (Sebi) in its latest annual report. In the absence of claims from a majority of the bondholders of the two Sahara companies, which were asked to return the money to nearly 3 crore investors along with interest in August 2012 through a Supreme Court order, the total amount refunded by Sebi inched up by just about Rs 7 lakh during the last fiscal, 2022-23, while the balance in Sebi-Sahara refund accounts rose by Rs 1,087 crore during the year. In its annual report, Sebi said it received 19,650 applications involving 53,687 accounts as on March 31, 2023. Of these, "refunds have been made with respect to 17,526 applications involving 48,326 accounts for an aggregate amount of Rs 138.07 crore including

Sebi looking to introduce 'MF Lite' regulations for passive funds

Capital markets regulator Sebi is engaged with the mutual fund industry to introduce 'MF Lite' regulations for passive funds, a move that will reduce the compliance burden and foster innovation. A passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Fund of Funds investing in ETFs. "Since the current MF regulatory framework was built around active fund management, Sebi is planning to introduce Mutual Fund Lite regulations for passive funds, wherein investment decisions are not discretionary, but tied to changes in the underlying benchmark index," the regulator said in its annual report for 2022-23, which was released on Monday. These new regulations are expected to significantly reduce the compliance requirements of passive funds and foster innovation in the passive fund ecosystem, it added. The regular mutual fund schemes, which raise money from the public, have to