Page 141 - Sebi

Sebi seeks identification of parent institutions of FPIs as legal entities

Though no official circular has been issued by the market watchdog, the efforts are being seen in the light of identifying the actual entity operating these FPIs

Sebi mulls removing differential treatment of investor classes in AIFs

Some schemes have been found to follow a model in which one class of investors, often a junior class, shares losses beyond the ratio of its contributions than a senior class of investors

Markets regulator mulls prohibiting differential treatment to AIF investors

Markets regulator Sebi on Wednesday proposed that AIF (alternative investment fund) investors should not be given any differential treatment, which affects the economic rights of other investors. In addition, the regulator is looking to provide clarity on the pro-rata rights of investors in an AIF scheme. AIF is a privately pooled investment vehicle, which collects funds from investors, for investing under a defined investment policy for the benefit of its investors. In its consultation paper, Sebi suggested that no differential rights should be provided to investors of the AIF/scheme, which would affect the economic rights of other investors. However, this should not apply in case of differential rights provided on terms with respect to the hurdle rate of return, performance-linked fee/additional return and management fee. With respect to the pro-rata rights of investors, the regulator recommended that the rights of each investor should be maintained at pro-rata to their commitmen

SpiceJet to get partial relief from Sebi after debt recast deal with lessor

Airline won't have to appoint independent valuer but Carlyle will need to follow six-month lock-in

HDFC-HDFC Bank merger: HDFC AMC receives Sebi approval to change control

Earlier in April, the company announced that the merger will be completed by July this year

TMS Ep439: Sebi's Adani probe, Delhi Metro, paint & tyre stocks, Hawala

What next in Sebi's Adani probe? How will cops in Delhi Metro affect you? Is it time to book profit in paint, tyre stocks? What is Hawala? All answers here

Regulators will drive the ESG agenda

Sebi made ESG reporting using the BRSR (business responsibility and sustainability reporting) framework mandatory for the top 1,000 listed companies from FY23 onwards

Sebi slaps Rs 41 lakh fine on 3 entities for violating market norms

Markets regulator Sebi on Tuesday slapped fines totalling Rs 41 lakh on three entities for flouting regulatory norms in the matter of Alps Motor Finance Ltd. The regulator imposed a fine of Rs 20 lakh on Brij Kishore Sabharwal, Rs 15 lakh on Himanshu Agarwal and Rs 6 lakh on Alps Motor Finance Ltd (AMFL). The order came after Sebi carried out an investigation to ascertain possible misutilisation of proceeds of the preferential allotments made by AMFL. Alps had made six preferential allotments during the period June-August 2013. The period of investigation was from June-August 2013. In its probe, Sebi's Adjudicating Officer Amit Kapoor said, "I note that the preferential allotment and disbursal of loans out of the proceeds of preferential issue took place during the tenure of the Noticees (Sabharwal and Agarwal) as directors, and that they were signatory of the bank account in which allotment proceeds were received and from which disbursal of loans was done." Therefore, Alps Motor

Sebi tweaks method for calculating Settlement Guarantee Fund in commodity

Capital markets regulator Sebi on Tuesday revised the methodology for clearing corporations with regard to computation of core Settlement Guarantee Fund corpus in commodity derivatives segment. A core Settlement Guarantee Fund (SGF) is a corpus used for settlement of trades during defaults and all intermediaries -- stock exchanges, clearing corporations and brokers -- contribute towards it. Sebi received representations from clearing corporations that in light of the turnover and the open interest observed at the stock exchanges in the recent times, the target corpus level prescribed in 2018 need to be reviewed and methodology for computation of core SGF corpus in commodity derivatives segment. In its circular, the regulator said that the clearing corporations in commodity derivatives segment can now align their core SGF in terms of its framework issued in August 2014 and July 2018 and excess contribution may be returned to the contributing stakeholders on a pro-rata basis, after ..

Rule prohibiting investment by opaque funds done away by Sebi: Cong

The Congress on Tuesday alleged that a rule prohibiting investment by opaque funds was done away with by SEBI on "weak grounds" and said the market regulator cannot run with the hares by diluting reporting requirements and hunt with the hounds pretending to identify beneficial ownership in opaque tax havens. The Opposition party's assertion came after a media report claimed that the Supreme Court-appointed committee scrutinised SEBI's dropping of a key regulatory requirement for foreign portfolio investments (FPIs) months before it developed suspicions on Adani group shareholding. In a statement, Congress general secretary in-charge communications Jairam Ramesh said it is now clear that, far from a clean chit, the Supreme Court expert committee on the "Modani mega scam" has unveiled how Securities and Exchange Board of India's (SEBI) investigation of suspicious Adani transactions have been blocked or reached an impasse, which is why the market regulator's report deadline was extended

Burden of proof

Proposed regulation for unlawful trades will not work

Wockhardt, directors settle case with Sebi, pays Rs 76 lakh for settlement

Drug maker Wockhardt and its three directors on Monday settled with Sebi a case pertaining to alleged non-disclosure of adverse observations made by the USFDA about the company's manufacturing facility to the exchanges in 2013. The entities together paid Rs 76.68 lakh towards settlement charges. While Wockhardt paid Rs 36.70 lakh, its three directors -- Habil Khorakiwala, Murtaza Khorakiwala and Huzaifa Khorakiwala -- paid Rs 13.32 lakh each towards the settlement fee to the capital markets regulator, according to a Sebi order. They had proposed to settle the pending proceedings, without admitting or denying the findings of fact and conclusions of law, through a settlement order, as per Sebi. It was alleged that they had violated the Securities Contracts (Regulation) Act (SCRA) and insider trading rules. Khorakiwalas' are also the promoter and promoter group of Wockhardt. In a show cause notice issued in September 2022, Sebi alleged that Wockhardt had failed to enforce the code o

Sebi asks REITs, InviTs to hold securities of SPVs, Holding Cos in demat

To encourage ease of doing business and improve transparency, capital markets regulator Sebi on Monday asked REITs and InvITs to hold the securities of holding companies and special purpose vehicles (SPVs) in dematerialized form only. The investment manager of the REIT (real estate investment trust) and InvIT (infrastructure investment trust) will have to ensure the same, Sebi said in two separate circulars. Further, for existing securities holdings by REITs and InvITs in Holding Companies and SPVs in physical form, the investment managers have been directed to dematerialise such securities by June 30. Under the rules, the units of REITs and InvITs would be issued only in the dematerialised form to all the applicants. REITs and InvITs are relatively new investment instruments in the Indian context but are extremely popular in global markets. While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out, InvITs comprise a portfolio of .

Sebi proposals to deal with suspicious trading will curb fraud: Experts

Markets watchdog Sebi's proposed regulatory framework to deal with unexplained suspicious trading patterns will help in detecting activities involving evasive tactics like the use of mule accounts, complex entity structures, and encrypted communication, experts said on Monday. The proposed framework would be a major step in bringing the perpetrators under the law and will help protect the interest of investors at large against such practices, Shrey Jain, Founder and CEO of SAS Online, said. Last week, Sebi proposed a new regulatory framework, wherein a person or group of connected persons exhibiting an unexplained suspicious trading pattern -- repetitive abnormal gainful dealings in a security or a set of securities, around the presence of material non-public information -- would be deemed to be violating the securities laws, unless they are able to effectively rebut the said presumption. According to Sebi's consultation paper, a repetitive pattern of trading activity by a person or

Sebi moots proposal to strengthen investor grievance mechanism SCORES

Capital markets regulator Sebi is looking to strengthen the investor grievance handling process through the SCORES system and integrate the same with the online dispute resolution mechanism. The proposal is aimed at making the entire redressal process of grievances in the securities market comprehensive by providing an end-to-end solution and the process more efficient and faster by reducing timelines and introducing auto-routing and auto-escalation. Also, the suggestion has been provided for two levels that the investor can opt for, plus the option for referral to the online dispute resolution (ODR) mechanism recently approved by Sebi. In its consultation paper on Friday, Sebi suggested that complaints about market price manipulation, insider trading and accounting manipulation by listed companies that are currently being auto-closed should be excluded from the SCORES platform and a separate portal for market intelligence should be created for this purpose. In case the investors .

Protect small investors against profiteering by short-sellers

Targeted short selling like the Hindenburg-Adani episode is relatively new in India, and has serious repercussions for small investors that need to be taken care of

Sebi proposes measures to contain price volatility on shares in derivative

Capital markets regulator Sebi on Sunday came out with a proposal to strengthen the existing price band formulation for scrips in the derivatives segment to deepen volatility management and minimize information asymmetry in the market. Price bands for scrip or a derivative contract represent the boundaries within which the competing orders of buyers and sellers are accepted for the day by the trading system of the stock exchange. For scrips having derivative contracts on them, these price bands are dynamic and can be flexed depending on trading during the day. In its consultation paper, Sebi has proposed that in case a share in the futures and options segment falls or rises beyond 20 per cent a day, cooling off period should be increased in a phased manner, subject to a maximum cooling-off period of one hour from the current 15 minutes at present. After this, such scrip should be permitted to move only a further up to 2 per cent as against the current limit of 5 per cent. The ...

The board should set the tone on governance

Financial institutions have limited choice. The central bank is increasingly looking at governance while evaluating the effectiveness of the board and senior management

Sebi proposes curbs on extreame price movements in derivative-linked shared

India's market regulator proposed measures to contain extreme price movements in shares on which futures and options trade, including longer trading suspensions and restricting price movements

Market regulator proposes halving IPO listing time on stock exchanges

India's market regulator proposed halving the time needed to list shares on the nation's stock exchanges from the closure of initial public offerings (IPOs) to three days.