Page 134 - Sebi

JP Morgan Chase Bank settles FPI rules case with Sebi; pays Rs 22.10 lakh

JP Morgan Chase Bank N.A on Friday settled with markets regulator Sebi a case pertaining to alleged violations of FPI rules on payment of Rs 22.10 lakh towards the settlement amount. The matter has been settled by JP Morgan Chase Bank (JPMC) through a settlement order "without admitting or denying the findings of fact". "It is hereby ordered that the instant adjudication proceedings initiated against JPMC vide show cause notice (SCN) dated September 23, 2022, and supplementary show cause notice (SCCN) dated December 29, 2022, is disposed of," Sebi's Adjudicating Officer Asha Shetty said in a settlement order. Sebi had received a letter in August 2021 from JPMC, wherein the regulator was informed about the delay in intimation of change in material information (merger) of Fidelity Investments Money Management (FIMM), which was registered as FPI, with its affiliate Fidelity Management & Research Company (FMRC). Pursuant to receipt of the communication, the market watchdog conducted ..

Sebi clears path for self-sponsored AMCs, lists duties of trustees

The trustees can avail services of third parties like audit firms, legal firms and merchant bankers to fulfill certain responsibilities

Sebi imposes Rs 1 cr penalty on Fidelity Management for operating as FPI

The merger of FIMM into FMRC resulted in the cessation of the FPI registration of FIMM, while FMRC had not obtained an FPI registration

Sebi puts in place regulatory framework for mutual fund's sponsors

Capital market watchdog Sebi on Friday came out with a regulatory framework for private equity funds sponsoring a mutual fund house as well as for self-sponsored Asset Management Companies (AMCs). Under the framework for private equity (PE) funds, Sebi said the applicant is required to have a minimum of five years of experience in the capacity of fund manager and an experience of investing in the financial sector. It should have managed, committed and drawn-down capital of at least Rs 5,000 crore. The mutual fund sponsored by the PE would not participate as an anchor investor in the public issue of an investee company, where any of the schemes and funds managed by the sponsor PE has an investment of 10 per cent or more or a board representation. "The experience, track record, and eligibility regarding the fit and proper criteria of any applicant PE to become a sponsor of a mutual fund shall be ascertained through its conduct in the respective home jurisdiction," Sebi said in a ...

Market regulator Sebi enhances accountability of mutual fund Trustees

Amidst the growing scale of the mutual fund industry, capital markets regulator Sebi on Friday increased the role and accountability of the Trustees in a bid to safeguard unitholders' interest. In addition, the regulator said that a unit holder protection committee (UHPC) by the board of an AMC would be constituted. This is part of Sebi's attempt to have an independent review mechanism for the decisions of AMC from the perspective of the unit holders' interest across all products and services. The new framework would come into force from January 1, 2024, the Securities and Exchange Board of India (Sebi) said in a circular. The regulator has specified the "core" responsibilities of the Trustees of a mutual fund, wherein they will have to ensure that the AMCs have adequate systems to prevent mis-selling to increase their assets base. Also, Trustees need to ensure that AMC has a system to prevent market abuse by its employees and connected entities. In addition, Trustees will be ...

Sebi to auction two properties of Swar Agrotech on Aug 7 to recover money

Capital markets regulator Sebi on Friday said it will auction two properties of Swar Agrotech India Ltd at a reserve price of over Rs 1 crore on August 7 to recover money raised by the firm from the public through illicit schemes. Inviting bids, the Securities and Exchange Board of India (Sebi) said an auction of the properties will be conducted through online mode between 11 am and 1 pm on August 7. The land parcels, which are going under the hammer, are in Uttar Pradesh. Further, the total reserve price has been pegged at Rs 1.07 crore for the assets, the regulator said in a notice. Quikr Realty has been engaged by Sebi to assist in the sale of these properties. Interested candidates can inspect the properties during July 17-21, Sebi said, adding that bidders should make their independent inquiries regarding the encumbrances, title of properties put on auction, and claims, among others, before submitting their bids. Going by the Sebi order, Swar Agrotech had mobilized around Rs

Sebi unveils new disclosure framework for issuers of debt securities

Markets regulator Sebi has notified rules for introducing the concept of general information and key information document to avoid multiple filings of documents by issuers of debt securities. The move will promote ease of doing business for issuers. A General Information Document (GID) will contain the information and disclosures specified in the common schedule and will be filed with the stock exchanges at the time of the first issuance. The GID will have a validity period of one year, Sebi said in a notification. Thereafter, for subsequent private placements of non-convertible securities or commercial papers within the validity period, only a Key Information Document (KID) will be required to be filed with the stock exchanges, containing material changes. KID includes financial information, if such information provided in the general information document is more than six months old. To begin with, Sebi said the concept would be made applicable on a 'comply or explain' basis til

FPI dealings in corporate debt: Sebi mulls 10% of trades via RFQ route

It is a dedicated platform for debt securities launched in 2020 by stock exchanges

Moderating sales, valuations concerns pull down mutual fund deployment

Moderating sales, valuation concerns pull down deployment; net inflows from domestic equity funds at Rs 2,980 cr since April

Sebi seeks explanation from NSE over misuse of its TAP platform: Report

In 2013, some high-frequency traders manipulated the platform to execute 'thousands of orders' without being detected and crowding out other users

Sebi amends guidelines for institutional placement of units by InvITs

Sebi on Wednesday amended the guidelines for preferential issue and institutional placement of units by Infrastructure Investment Trusts and Real Estate Investment Trusts. The changes have been made after receiving feedback from stakeholders. In two separate but similarly-worded circulars issued for InvITs and REITs, Sebi has mentioned about pricing for institutional placement of units. "The institutional placement should be made at a price not less than the average of the weekly high and low of the closing prices of the units of the same class quoted on the stock exchange during the two weeks preceding the relevant date," Sebi said. According to the regulator, InvITs and REITs may offer a discount of not more than five per cent on the price, subject to approval of the unitholders concerned. The relevant date for deciding the price would be the "date of the meeting in which the board of directors of the manager decides to open the issue".

Sebi mandates certification for ESG rating providers within six months

Regulation to level playing field for Indian companies, say experts

Sebi brings new dispute resolution mechanism for investors, intermediaries

Investors will now get a review by a designated body if they aren't satisfied with a resolution. If an investor is dissatisfied even with the first review, Sebi will do a second review

Sebi issues consultation paper on cyber security, resilience framework

Sebi on Tuesday came out with a consultation paper on boosting cyber security framework for entities regulated by it. The consultation paper on 'Consolidated Cyber security and Cyber Resilience Framework (CSCRF) for Sebi Regulated Entities' looks at providing a common structure for multiple approaches to cyber security to prevent any cyber-risks/incidents. Sebi said the framework is based on five concurrent and continuous functions of cyber security as defined by NIST -- Identify, Protect, Detect, Respond, and Recover. NIST refers to the National Institute of Standards and Technology. "All REs shall formulate an up-to-date Cyber Crisis Management Plan (CCMP)," the consultation paper said, adding that they would also have to put in place comprehensive incident response management plan and respective Standard Operating Procedures (SOPs). "Alerts generated from monitoring and detection systems shall be suitably investigated for Root Cause Analysis (RCA)," it noted. Comments on the

Sebi provides clarity on director nomination by debenture trustees

After receiving representations, markets regulator Sebi on Tuesday provided clarity on the requirements for appointment of directors by entities that have listed their debt securities. Under Sebi norms pertaining to listing of non-convertible securities, an entity registered under the Companies Act, 2013 has to ensure that a person nominated by the debenture trustee is appointed as a director. While this obligation exists for issuers that are companies under the Companies Act, 2013, there is no similar obligation for issuers that are not companies. In this regard, representations have been received from debenture trustees, the regulator said in a circular. Against this backdrop, Sebi noted that the appointment of a director including nominee director is driven by the provisions of the principal document of the entity (Articles of association, in case of companies under the Companies Act, 2013). "A nominee director is a director, and therefore, except for specific provisions of law,

Front running case: Individual settles case with Sebi, pays over Rs 44 lakh

An individual on Tuesday settled with capital markets regulator Sebi a case pertaining to the alleged front running of trades of its clients Aequitas after payment of over Rs 44 lakh towards settlement charges. Aequitas is a Mumbai-based boutique investment firm. The order came after the applicant (Pawan N Agarwal) filed a settlement application under the settlement regulations. "The instant proceedings initiated against the applicant vide show cause notice (SCN) dated April 22, 2022, is disposed of," Sebi said in a settlement order. Sebi received a complaint from Finsec Law Advisors alleging that Pawan N Agarwal and two others have violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) by engaging in front running/ mirror trading of trades of its clients Aequitas. Thereafter, an investigation was carried out by the regulator and it was observed that Agarwal had violated the provisions of PFUTP rules. Upon conclusion of the investigation, the regu

Market regulator Sebi mulls consolidated framework for cyber security

Regulator's consultation paper proposes to supersede 15 circulars issued earlier

Nova Agri, Netweb Tech India, EMS get Sebi's approval to float IPO

Agri-input manufacturer Nova Agritech, server maker Netweb Technologies India and sewerage solution provider EMS have received capital market regulator Sebi's approval to raise funds through initial public offerings. The three companies, which filed their preliminary papers with Sebi between March and April 2023, obtained the regulator's observations during June 26-30, an update with the markets watchdog showed on Tuesday. In Sebi's parlance, obtaining observation means its go-ahead to float the initial share sale. As per the draft papers, Nova Agritech's initial share sale comprises a fresh issue of equity shares worth up to Rs 140 crore and an offer-for-sale (OFS) component of up to 77,58,620 equity shares of shareholder Nutalapati Venkatasubbarao. The proceeds from the fresh issue worth Rs 14.20 crore will be utilised for investment in its subsidiary Nova Agri Sciences for setting up a new formulation plant, Rs 10.49 crore for funding capital expenditure by Nova Agritech and ...

Sebi asks law firm representing Zee founders against it to return briefs

Economic Laws Practice defended the founders of Zee Entertainment in a case against the regulator in the securities appellate tribunal

Sebi penalises promoter entity of ZEEL for certain disclosure lapses

Sebi has penalised Cyquator Media Services, a promoter entity of ZEE Entertainment Enterprises Ltd (ZEEL), for certain disclosure lapses. A fine of Rs 4 lakh has been imposed on Cyquator for failing to make adequate disclosures regarding certain trades in shares of ZEEL. The regulator had conducted an examination of trading in ZEEL shares by the entity to ascertain any possible violations of insider trading norms during the period from January 1 to December 26, 2019. "It was observed that the noticee (Cyquator Media Services) being a promoter has made delayed disclosure with respect to creation of pledge and also failed/made delayed disclosures w.r.t. invocation and sale of pledge to ZEEL and exchanges," Sebi said in an order passed on Friday. A show cause notice was issued to the noticee, which submitted its reply. The noticee contended that failure to make disclosures within the stipulated time, was unintentional, technical or inadvertent and that no gain or unfair advantage has