Page 135 - Sebi

Sebi imposes Rs 7 lakh penalty on Reliance Strategic Investments Ltd

Sebi on Friday penalised Reliance Strategic Investments Ltd for alleged manipulation in certain trades in long-dated Nifty options in 2017. 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 Securities and Exchange Board of India (Sebi) conducted an investigation into the trades done on July 31, August 8 and August 10, 2017. Based on the findings of the probe, the regulator alleged violations of certain PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations by both entities. In an order on Friday, Sebi imposed a fine of Rs 7 lakh on Reliance Strategic Investments Ltd (noticee). "The observations relating to the conduct of noticee and other attending facts and circumstances of the case... when applied to the test of preponderance of probability, lead me to the undeniable conclusion that noticee had engaged in manipulation of the price/premium of 11400 PE at leas

Sebi tweaks framework for upstreaming of client funds by brokers

Markets regulator Sebi on Friday tweaked the framework pertaining to upstreaming of all client funds received by stock brokers and clearing members to clearing corporations. The modifications have been made following representations received from various stakeholders, including Market Infrastructure Institutions (MIIs) and stock brokers, saying that changes to the systems are still under progress, and that there are certain practical difficulties in implementation of the proposed framework. Under the framework which was issued earlier this month, no clients' funds would be retained by stock brokers on an End of Day (EoD) basis. Further, clients' funds will be upstreamed by stock brokers and clearing members to clearing corporations only in the form of either cash, lien on Fixed Deposit Receipt (FDR) or pledge of units of mutual fund overnight schemes, In a circular on Friday, Sebi said stock brokers/ clearing members (SBs/CMs) may receive funds from clients beyond the prescribed

Sebi imposes Rs 30 lakh penalty on Vedanta Ltd for incorrect disclosures

Markets regulator Sebi on Friday imposed a fine of Rs 30 lakh on Vedanta Ltd for failing to provide correct disclosures, including on its website, in relation to certain announcements made by the company last year. In a 24-page order, Sebi said the act of Vedanta Ltd (noticee) to carry news not pertaining to its operations on the website leads to providing misleading information to the investors of the public limited company. "All these events may lead one to cast aspersions on the intent of the company to host the press release on its website," the regulator said as it imposed a fine of Rs 30 lakh on the company for certain violations of norms. The fine has been slapped for the failure to provide correct disclosures, including misrepresentation on the company's website. In March this year, the Securities and Exchange Board of India (Sebi) issued a show cause notice to Vedanta Ltd. The matter pertained to announcements related to the semiconductor business, including the company's

Sensible rules from Sebi

New regulations promise better governance and transparency

Sebi may bar intermediaries from aligning with errant finfluencers

We have no problem with someone educating investors but it should not involve inducements, says chairperson Buch

Sebi sees no need for more time to MFs for realigning portfolios in HDFC

The market regulator Sebi does not see any need for giving more time to mutual fund houses with large holdings in the merger-bound HDFC twins, to realign their portfolios post-merger since there's no material data and given the highly liquid nature of these stocks demanding such an extension. In the biggest merger in the history of India Inc, HDFC in April 2022 said it would merge with its own banking subsidiary in a USD 40-billion all-stock deal -- after 46 years of being a home loan financier and in between creating the country's largest private sector bank and four other financial sector brands in the insurance, AMC and brokerage businesses. And this Tuesday (June 27), HDFC chairman Deepak Parekh said the boards of the Corporation and HDFC Bank will meet on June 30 to finalise the last contours of the merger which is expected to be effective July 1.. He has also said that would be the last meeting of HDFC board and also his as the chairman after working in the company from day on

Sebi finalising draft discussion paper over guidelines for 'finfluencers'

Market watchdog Sebi will be finalising a draft discussion paper in a month or two to formulate rules and guidelines to regulate the mushrooming number of unregistered financial influencers or finfluencers who offer investment advisors to the public. The statement from Sebi chairperson Madhabi Puri Buch comes on the heels of the income tax department reportedly sending notices to top 35 social media influencers for not paying taxes worth crores of rupees and after last week's searches on the top 13 Youtubers in Kerala for similar offences. "We are crystalising a discussion paper to regulate financial influencers. The paper should be ready for public comments in the next couple of months," Buch told reporters late last night after a marathon board meeting wherein the board approved a rash of regulatory measures including halving of the share listing time to three days the present six after an IPO. The board also decided to tighten the disclosure norms for large foreign portfolio ...

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Sebi to revamp, strengthen investor grievance handling mechanism

Markets watchdog Sebi on Wednesday decided to revamp its complaint redressal system as part of efforts to strengthen the investor grievance handling mechanism. At its meeting here, the Sebi board cleared various measures to boost the investor grievance handling mechanism and linking SCORES (Sebi Complaint Redress System) with the Online Dispute Resolution Mechanism. It would also look at reducing timelines, introducing auto-routing of the complaint to concerned regulated entities, and auto-escalation of complaints in case of non-adherence to the prescribed timelines by the regulated entity. Among others, Sebi, in a release after the board meeting, said it would also provide two levels of review. The first review would be by the designated body if the investor is dissatisfied with the resolution provided by the regulated entity concerned. The second review would be done by Sebi if the investor is still dissatisfied after the first review. Linking SCORES with Online Dispute Resoluti

Sebi to reduce listing time public issues; to mandate disclosures for FPIs

Markets regulator Sebi on Wednesday approved various proposals, including reducing the time period for the listing of shares in a public issue, mandating additional disclosure requirements for foreign portfolio investors and introducing board nomination rights for unitholders of InvITs and REITs. These were among the seven proposals approved by Sebi's board during its meeting here. The board has cleared reducing the time period for the listing of shares in public issues from the existing 6 days to 3 days from the date of issue closure (T Day). "The revised timeline of T+3 days shall be made applicable in two phases i.e. voluntary for all public issues opening on or after September 01, 2023, and mandatory on or after December 01, 2023," the regulator said in a release. The watchdog will enhance disclosure requirements for Foreign Portfolio Investors (FPIs), including mandating additional granular-level disclosures regarding ownership, economic interest and control of objectively ...

3 of crisis management team settle NSE 2021 trading glitch case with Sebi

Three persons, who were part of the crisis management team at the National Stock Exchange (NSE), on Wednesday settled with markets regulator Sebi a case of trading glitch that occurred at the bourse in February 2021. The three executives settled the case with Sebi on non-monetary settlement terms as the regulator ordered them to do community service for the cause of investor education and awareness for 14 days. Also, they have been directed to take up and pass appropriate training courses. Those who settled the case were -- Ravi Varanasi, who was Chief Business Development Officer at NSE, K S Somasundaram, who was Chief Enterprise Risk & Information Security Officer of NSE and Mayur Sindhwad, who was Chief Operating Officer of the bourse, at the time of the glitch. Trading was halted at the NSE for nearly four hours on February 24, 2021, reportedly due to telecom links failure leading to unavailability of the online risk management system of NSE Clearing Ltd (NCL). NCL, a ...

SAT stays Sebi's order restraining IIFL Securities from taking new clients

In an interim relief to IIFL Securities, the Securities Appellate Tribunal (SAT) has stayed market regulator Sebi's order that banned the broking house from onboarding new clients for two years. The order came after IIFL Securities, earlier known as India Infoline Ltd, filed an appeal against the order passed by the Securities and Exchange Board of India (Sebi). In an order uploaded on its website on Wednesday, the appellate tribunal has stayed the order passed by Sebi. The matter has been listed for final disposal on August 23. The capital markets regulator, on June 19, prohibited IIFL Securities from taking up new clients for two years for alleged mis-utilisation of client funds. In its order, Sebi found that IIFL failed to segregate its own funds from clients' funds, misused the funds of its credit balance clients for settlement of its proprietary trades as well as the trades of its debit balance clients from April 2011 to June 2014, and the said violations were again noticed .

Top headlines: Adani cos under Sebi lens, TCS on foreign remittances

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Informal Guidance: Sebi discontinues fee payment via demand draft

Capital markets regulator Sebi on Tuesday said it will no longer accept demand drafts concerning the fee charged for requesting informal guidance about applicability of rules. Now, the regulator will accept the fee by way of direct credit into its bank account. Sebi's Informal Guidance Scheme enables certain entities to request for informal guidance regarding the applicability of laws and regulations administered by the markets regulator in the form of "No Action Letters" or "Interpretive Letters" from the markets watchdog. In a statement, Sebi said that it has been decided to do away with the acceptance of a demand draft with respect to the fee charged for making a request under the scheme. Accordingly, the regulator said that the request under the informal guidance "shall be accompanied with a fee of Rs 25,000 by way of direct credit into the bank account of the board through NEFT/RTGS/IMPS or online payment using the Sebi payment gateway". To give this effect, the Securities an

Sebi gives norms for compliance with 25% minimum public holding rules

Markets regulator Sebi on Tuesday provided methods such as an offer for-sale mechanism, rights issue and issuance of bonuses to unitholders of REITs and InvITs to achieve compliance with the 25 per cent minimum public holding requirement. The rule mandates that any listed REIT (Real Estate Investment Trust) or InvIT (infrastructure investment trust), which has public unitholding below 25 per cent, will have to increase its public unitholding to at least 25 per cent within a period of three years from the date of listing of units. To facilitate REITs and InvITs to achieve minimum public unitholding compliance, Sebi said that managers of these trusts will have to adopt any method suggested by the regulator. Methods include the issuance of units to the public through an offer document, offer for sale (OFS) of units held by the sponsor, manager and their associates to the public through an offer document and OFS of units through the stock exchange mechanism for compliance with the ...

Sebi asks CRAs to disclose lists of non-cooperative issuers with them

With an aim to boost transparency, capital markets regulator Sebi on Monday asked credit rating agencies to disclose lists of issuers who are non-cooperative with them. This comes after Sebi observed over the time the number of issuers that are non-cooperative with CRAs (Credit Rating Agencies) have increased, with a vast majority of INC issuers being unlisted and small entities. In this regard, to provide enhanced transparency and information regarding non-cooperative issuers to various stakeholders, market participants and investors, Sebi said, "CRA shall disclose two lists of issuers who are non-cooperative with the CRA, separately for securities that are listed, or proposed to be listed, on a recognised stock exchange, and other ratings." The list would be disclosed in a prescribed format and the disclosure would be updated on a daily basis, the Securities and Exchange Board of India (Sebi) said in a circular. The new circular will be applicable with effect from July 15, 2023,

Tata Technologies, Gandhar Oil, SBFC Finance get Sebi's nod to float IPO

Tata Technologies, an arm of Tata Motors, Gandhar Oil Refinery (India) Ltd and non-banking financial company SBFC Finance 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 December 2022 and March 2023, obtained the regulator's observations during June 21-23, an update with the markets watchdog showed on Tuesday. In Sebi's parlance, obtaining observations mean its go-ahead to float the initial share sale. As per the draft papers, Tata Technologies' IPO is purely an Offer For Sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60 per cent of its paid-up share capital. Under the OFS, Tata Technologies' parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company. Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 per cent) and Tata .

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Transparency in governance

Sebi's new rules will help minority shareholders