Page 130 - Sebi

BLS E-Services files draft papers with Sebi to garner funds via IPO

BLS E-Services Ltd has filed draft papers with capital markets regulator Sebi to mobilise funds through an initial public offering (IPO). The company is a subsidiary of BLS International Services Ltd, which offers visa and consular services. The IPO comprises a fresh issue of 2.41 crore equity shares with no offer for sale (OFS) component, according to the draft red herring prospectus (DRHP) filed on Friday. Proceeds of the issue will be utilized for strengthening technology infrastructure to develop new capabilities and consolidating existing platforms. In addition, fresh capital will be used for funding initiatives for organic growth by setting up BLS Stores, achieving inorganic growth through acquisitions, and general corporate purposes. BLS E-Services Ltd is a leading technology-enabled digital service provider, offering business correspondent services to major banks in India, assisted e-services; and e-governance services at grass root levels in India. The company provides a

Sebi reduces time limit for AIFs, VCs to invest overseas to 4 months

Capital markets regulator Sebi on Friday reduced the validity period of approval given to alternative investment funds (AIFs) and venture capital funds (VCFs) for making overseas investments to four months from six months at present. If these funds fail to make investments within this time limit, then Sebi can allocate their unutilized limits to other applicant AIFs and VCs. The decision has been taken considering into account the recommendation of the Alternative Investments Policy Advisory Committee, the Securities and Exchange Board of India (Sebi) said in a circular. Under the rule, AIFs and VCFs have a time limit of six months from the date of prior approval from Sebi to making the allocated investments in offshore venture capital undertakings. In case the applicant AIFs and VCFs does not utilize the limits allocated to them within six months then Sebi can allocate such unutilized limit to another applicant. "It has been decided to reduce the aforesaid time limit for making

Sebi provides clarity on online resolution of disputes framework

Capital markets regulator Sebi on Friday provided more clarity on the framework concerning online resolution of disputes in the Indian securities market. Providing clarity on initiation of the dispute resolution process, Sebi said that an investor will have to first take up his/her grievance with the market participant by lodging a complaint directly with the concerned market participant. If the grievance is not redressed satisfactorily, the investor can escalate the same through the regulator's SCORES portal. After exhausting these options for resolution of the grievance, if the investor is still not satisfied with the outcome, he/she can initiate dispute resolution through the Online Dispute Resolution (ODR) portal, Sebi said in a circular. The regulator further said that dispute resolution through the ODR portal can be initiated when the complaint is not under consideration by the market participants and SCORES platform or not pending before any court, tribunal or consumer forum

Corporate Affairs ministry examines Sebi's allegations against Zee Ent

However, the MCA has not issued an inspection order, the report added

Sebi keeps in abeyance the proposed IPO sale of securities depository NSDL

Capital markets regulator Sebi has kept in 'abeyance' the proposed initial share sale of securities depository NSDL. However, the Securities and Exchange Board of India (Sebi) did not clarify further. The National Securities Depository Ltd (NSDL) filed its preliminary papers with the capital markets regulator on July 7. Going by the draft papers, NSDL's proposed initial public offering (IPO) is a complete offer-for-sale (OFS) of more than 5.72 crore equity shares by existing shareholders. Under the OFS, IDBI Bank plans to offload 2.22 crore shares, National Stock Exchange (NSE) 1.80 crore shares, Union Bank of India 56.25 lakh shares, State Bank of India and HDFC Bank will offload 40 lakh shares each. Also, Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 34.15 lakh shares of the Mumbai-based depository. IDBI Bank and National Stock Exchange (NSE) held 26.10 per cent and 24 per cent, respectively, of the share capital of NSDL. A certain por

Mamaearth's parent Honasa Consumer gets Sebi's nod to float IPOs

Honasa Consumer and Indegene filed their preliminary IPO papers with Sebi in December 2022

Honasa Consumer, healthcare tech firm Indegene get Sebi's nod to float IPOs

Honasa Consumer Ltd, which owns FMCG brands Mamaearth and The Derma Co, and healthcare tech firm Indegene Ltd have received markets regulator Sebi's clearance to raise funds through Initial Public Offerings (IPOs). In addition, engineering, procurement and construction (EPC) firm Vishnu Prakash R Punglia Ltd obtained Sebi's go-ahead to float the initial share sale. Honasa Consumer and Indegene filed their preliminary IPO papers with Sebi in December 2022, while that of Vishnu Prakash R Punglia was filed in April 2023. The three companies obtained Sebi's observations letter during July 25-28, an update with the regulator showed on Thursday. In Sebi's parlance, its observations mean it's go-ahead to launch the public issue such as IPO and FPO (Follow-on-Public Offer). Going by the draft papers, Honasa Consumer's proposed IPO comprises a fresh issue of equity shares worth up to Rs 400 crore and an Offer For Sale (OFS) of up to 4,68,19,635 shares by promoters and existing ...

Market regulator Sebi cancels registration of MMTC as broker in NSEL case

Capital markets regulator Sebi has cancelled the registration of MMTC Ltd as a stock broker for its involvement in illegal "paired contracts" in a case pertaining to now defunct National Spot Exchange Ltd (NSEL). While cancelling the licence, Sebi directed MMTC to allow its existing clients to withdraw or transfer their securities or funds held by it within 15 days. In case a client fails to do so, the broker will transfer the funds and securities of such clients to another registered broker in the next 15 days under advice to the said clients, Sebi said in its order on Wednesday. Going by the order, MMTC is a commodity derivatives broker registered with Sebi, from December 2015 and is currently a member of the Multi Commodity Exchange of India Ltd (MCX). The broker made an application in September 2019 for surrendering its membership of MCX. However, the surrender application of MMTC is still pending with MCX. In its order, Sebi said MMTC traded in "paired contracts", which did n

Optimal disclosure

Sebi's consultative approach should be welcomed

Sebi slaps Rs 30 lakh fine on 6 for indulging in non-genuine trades

Capital markets regulator Sebi has slapped fines totalling Rs 30 lakh on six entities for indulging in non-genuine trade in the illiquid stock options segment on the BSE. In six separate orders on Monday, the regulator imposed a fine of Rs 5 lakh each on Shrenil L Zaveri, Skyrail Logistics, New Star System Solutions, Seema Didwania, Saroj Devi Bajoria and Pawan Kumar Kejriwal HUF. The orders came after Sebi observed a large-scale reversal of trades in the illiquid stock options segment of BSE, leading to the creation of artificial volumes on the bourse. It conducted an investigation into the trading activities of certain entities engaged in the segment on BSE from April 2014 to September 2015. According to Sebi, these six entities were among those who indulged in the execution of reversal trades. The 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 ..

Sebi, APMI jointly set standards for performance audit of PMS players

The standard specified by APMI will be effective from October 1, Sebi said in a circular

Sebi brings in uniformity in audit of firm-level performance data

In order to bring uniformity, capital markets regulator Sebi on Wednesday decided to standardise the way portfolio managers audit the firm-level performance data on an annual basis, according to a circular. Under the rule, portfolio managers are required to submit audit reports on firm-level performance data to Sebi within 60 days from the end of each financial year. They are required to consider all clients' portfolios managed -- clients of both discretionary and non-discretionary portfolio management services -- for the purpose of audit of firm-level performance data. In its circular, the regulator said that the Association of Portfolio Managers in India (APMI), in consultation with Sebi, will specify standardised Terms of Reference (ToR) for the audit of firm-level performance data. The standard ToR will include a requirement for portfolio managers to consider clients' portfolios under all services for the audit of firm-level performance data. However, the performance of adviso

Unifi Capital, 7 individuals pay Rs 38 lakh to settle case with Sebi

Unifi Capital and seven individuals have settled with capital markets regulator Sebi a case pertaining to the alleged violation of AIF rules on payment of Rs 38 lakh. The individuals are: Sarath Chandra Reddy Kakani, Krishnamurthy Narendranath, Govindasamy Maran, Christopher Vinod, Sandeep Nadigadda Reddy, M S Sundararajan and Rajgopalan Santhanam, Sebi said in the order. The order came after the noticees proposed to settle the instant proceedings "without admitting or denying the findings" through a settlement order. The adjudication proceedings initiated against the noticees (Unifi Capital, Kakani, Narendranath, Maran, Vinod, Reddy, Sundararajan and Santhanam) vide show cause notice dated October 19, 2022 is disposed of, Sebi's Adjudicating Officer Biju S said in the settlement order passed on Tuesday. In the show cause notice (SCN) issued to the noticees, it was alleged that Unifi runs a category III AIF, in which it invested in the mutual funds categorised as large capital fund

Sebi imposes Rs 13 lakh fine on two former executives of Wockhardt

Market regulator Sebi has imposed penalties totalling Rs 13 lakh on two former executives of Wockhardt for flouting insider trading norms. The regulator has slapped a fine of Rs 12 lakh on Yatendra Kumar and Rs 1 lakh on Shashi Kant Tiwari. The order came after Sebi conducted an investigation into the trading activity in the scrip of Wockhardt for the January 2012 to August 2013 period to ascertain any violation of the provision of insider trading rules. In its 35-page order on Monday, Sebi found that Kumar was an insider who had traded in the scrip of Wockhardt while having Unpublished Price Sensitive Information (UPSI), regarding issuance of Form 483 by the US Food and Drug Administration (USFDA) to Wockhardt's manufacturing facility in Waluj in Maharashtra. Form 483 contains FDA's observation in detail and is issued if USFDA finds objectionable conditions upon completion of inspection of facilities. The issuance of such a form is regarded as adverse observations. Unless rectifie

Sebi at work: Curbs on account aggregator usage, commodity brokers barred

The markets regulator on Tuesday amended its previous circular on trading preferences between exchanges

Sebi floats consultation paper to improve Account Aggregator framework

Sebi on Tuesday came out with a proposal on collating and defining use cases of Financial Information Users (FIUs) in the Account Aggregator framework in securities markets. This is aimed at improving the safeguards within the Account Aggregator or AA framework to curb misuse of the financial information in frauds and mis-selling. An Account Aggregator, a RBI-regulated Non-Banking Finance Company (NBFC), helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network. AAs cannot see or store customer data since the data processed through them is encrypted, they merely transmit it from one financial institution to another based on a customer's direction and consent. In its consultation paper, Sebi said that there could be certain situations in the securities market when "financial information" of a client could be sought using the AA framework. These inclu

Investment firm attempts to sell assured return product to Sebi official

Capital markets regulator Sebi has imposed a penalty of Rs 12 lakh on investment adviser Investment Visor for promising assured returns, making misleading claims on its website and mis-selling to clients. Praveen Verma is the proprietor of Investment Visor. Incidentally, one of the employees of Investment Visor called up a Sebi official in the Indore Local Office and offered assured profit or return, the markets regulator said in its order passed on Monday. During the call, the employee was informed that the daily average return being delivered or given by the calls of Investment Visor on the invested amount of the clients is around 20 per cent to 30 per cent, the order mentioned. Moreover, the employee informed the official that risk profiling of the client is being done by Sebi-Mumbai. Apart from these, other violations by Investment Visor include failure to resolve complaints received on SEBI Complaints Redress System (SCORES); collection of GST from clients even after cancella

Sebi's recent rules increase costs, compliance burden on companies

Companies are struggling to prepare themselves for the new regulations, some of which will take effect in a few months

Man Industries settles forensic audit disclosure lapses case with Sebi

Man Industries (India) Ltd on Monday settled with capital markets regulator Sebi a case concerning alleged delayed and inadequate disclosure regarding the initiation of a forensic audit. The matter was settled after the company paid Rs 8.79 lakh towards the settlement amount, according to an order passed by the Securities and Exchange Board of India (Sebi). The order came after the company filed an application with Sebi, requesting the settlement of the adjudication proceedings initiated through a show-cause notice in August last year. "Specified proceedings initiated against the applicant (Man Industries) vide Show Cause Notice dated August 3, 2022 are disposed of in terms... of the Settlement Regulations on the basis of the settlement terms," Sebi said in its order. The regulator had initiated a forensic audit in respect of Man Industries for the financial years 2014-15 to 2020-21. The receipt of the intimation was acknowledged by the applicant through an email dated November 25,

Sebi asks MIIs to develop common Online Dispute Resolution Portal

Capital markets regulator Sebi on Monday asked market infrastructure institutions (MIIs) to set up and operate a common Online Dispute Resolution Portal (ODR Portal). The portal will harnesses online conciliation and online arbitration for resolution of disputes arising in the Indian securities markets. The MIIs-- stock exchanges, depositories and clearing corporations-- will have to make joint efforts to develop and operationalize the ODR Platform, Sebi said in a circular. All listed companies, specified intermediaries and regulated entities-- collectively called market participants -- in the securities market will have to enroll on the ODR Portal. "The MIIs shall, in consultation with their empanelled ODR Institutions, establish and operate a common ODR Portal," Sebi said. Disputes between investors and listed companies, specified Intermediaries and regulated entities would come under the ambit of ODR. With regard to initiation of the dispute resolution process, Sebi said that