Page 156 - Sebi

Sebi bars 21 entities from capital markets in Axis MF case: Interim order

The market regulator said it identified Rs 30.5 crore as wrongful gains accrued due to the alleged front-running activities and directed that this amount be impounded from the entities

'Impound Rs 30.6 crore': Sebi diktat in Axis MF front-running case

The regulator ordered the impounding of Rs 30.6 crore - total wrongful gains earned from front-running activities

Sebi penalises Swastika Investmart for misusing clients' securities, funds

Sebi on Tuesday slapped a fine of Rs 15 lakh on Swastika Investmart Ltd for misutilisation of clients' securities and funds. The order came after the Sebi conducted an inspection of Swastika Investmart Ltd (SIL) for a period from April 2020 to June 2021. Based on the findings of the examination, the regulator initiated adjudication proceedings against Swastika for the alleged violations of Securities contracts (regulations) act (SCRA) and other market norms. In its order, the Securities and Exchange Board of India (Sebi) found that Swastika had misutilised the funds of its credit balance clients for the purpose of settlement/ margin obligations of debit balance clients. The amount of mis-utilisation of credit balance client funds ranged between Rs 6.44 lakh to Rs 1.38 crore. In a separate order, the regulator imposed a fine of Rs 15 lakh on 15 entities for flouting the regulatory norms in the matter of Matra Kaushal Enterprise Ltd (MKEL). The entities are the promoters of MKEL. T

Sebi cancels Way2Wealth Commodities registration in NSEL scam case

Capital markets regulator Sebi on Monday cancelled the registration of Way2Wealth Commodities for facilitating its clients to trade on the platform of the now defunct National Spot Exchange Ltd (NSEL) in illegal 'paired contracts. By providing such a facility of taking exposure to 'paired contracts', the broker exposed its clients to the risk involved in trading in a product that did not have regulatory approval, Sebi said in an order. "The noticee (Way2Wealth Commodities) provided a platform for its clients to access a product which raised serious questions on the ability of the noticee to conduct proper and effective due diligence regarding the product itself. "In failing to dissociate itself from, and continuing to facilitate participation in the said paired contracts, the noticee failed to act with due diligence," Sebi said. Accordingly, Way2Wealth Commodities can no longer be called a "fit and proper person" for holding the certificate of registration as a broker in the ...

Divgi TorqTransfer Systems sets IPO price band at Rs 560-590 per share

The IPO will open on Wednesday and conclude on Friday

Sebi asks investors to submit original documents for refund in PACL case

A high-powered Sebi committee on Monday asked investors in illegal schemes of PACL group, with claims of up to Rs 17,000, to produce original documents by March 20 for receiving refunds. The panel has asked only those investors, whose applications have been successfully verified, to submit their original certificates. The committee, headed by former Chief Justice of India RM Lodha, is overseeing the process of disposing of properties to refund investors after verifying their genuineness. It has already initiated the process of refund in phases. The panel was set up by Sebi in 2016 following a Supreme Court order. The committee has decided to call for original PACL registration certificates from eligible investors with claims between Rs 15,001 and Rs 17,000, whose applications have been successfully verified, according to a statement published on Sebi's website on Monday. Accordingly, intimation through SMS will be sent to all eligible investors, requiring them to submit original PA

L'affaire Adani and the colonial mindset in our approach to governance

All regulatory institutions should be made constitutional authorities, suggests T C A Srinivasa Raghavan

Top headlines: Unemployment rate dips to 4.1%, FDI inflows take a hit

Business Standard brings you the top headlines at this hour

Sebi likely to scrap small town-linked incentive for mutual funds

This comes amid concerns about misuse of framework

Sebi to control unsolicited fin market advise from social media influencers

Markets watchdog Sebi will come out with a discussion paper to frame guidelines to control unsolicited financial and stock market advise from social media influencers as also from unregulated investment advisors. Addressing a meeting of the Association of Registered Investment Advisers here on Friday, Sebi Whole Time Member Ananth Narayan Gopalkrishnan said some unscrupulous people are misusing their Sebi registration to further their businesses and as the regulator "we don't want (that) to happen". "We'll come out with a discussion paper seeking inputs for making effective measures to control unsolicited financial and market advises from social media influencers and also from unregulated investment advisors. "After inputs from market participants, and other stakeholders, we'll issue guidelines to rein them in," Gopalkrishnan said. There is also the issue of unregistered investment advisors, who pose greater risks to gullible investors. More important, "we see examples of misuse of

Sebi pitches change in rules for REITs, InvITs; sponsors to own some units

Sebi has proposed changes to rules governing REITs and InvITs whereby sponsors will be required to own a certain percentage of units in these investment vehicles. Coming out with a consultation paper on the subject, the markets regulator said the changes are being proposed keeping in mind the interest of unit holders and the structural vulnerabilities associated with absence of a sponsor for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The watchdog has suggested that the sponsors of REITs/InvITs should hold 15 per cent of the capital for a period of three years from the date of listing as there is no mandatory unit holding requirement after three years. It has also been proposed to mandate sponsors to hold 5 per cent of the unit capital after 3-5 years, 3 per cent from 5-10 years, 2 per cent from 10-20 years and 1 per cent after 20 years. "... it is felt that there is a need to have at least one sponsor throughout the life of the REIT/ InvIT

NSE Indices launches country's first ever Nifty India Municipal Bond Index

NSE Indices Ltd, an NSE arm, on Friday said it has launched the country's first ever municipal bond index. The new Nifty India Municipal Bond Index will track the performance of municipal bonds issued by Indian municipal corporations across maturities and having investment grade credit rating, NSE Indices said in a statement. The index was launched at a Securities and Exchange Board of India (Sebi) workshop on Municipal Debt Securities in Bengaluru. Presently, the index has 28 municipal bonds issued by 10 issuers all having credit rating in the AA category. The index constituents are assigned weights based on their outstanding amount. The Indian municipal bond market has seen a resurgence of issuances after Sebi's Issue and Listing of Municipal Debt Securities Regulations, 2015 came into effect and a renewed emphasis on municipal finance by policymakers. Raising money from capital markets incentivises municipal corporations to fund new projects and improve civic infrastructure whi

SAT reduces Sebi's penalty on Jindal Cotex to Rs 25 lakh in GDR case

The Securities Appellate Tribunal has slashed the penalty imposed by Sebi on Jindal Cotex Ltd (JCL) to Rs 25 lakh from Rs 10.3 crore in a case related to manipulation in the issuance of global depository receipts. Also, the appellate tribunal reduced the fine on JCL's Managing Director Sandeep Jindal to Rs 10 lakh from Rs 20 lakh. However, it affirmed the penalty imposed on Rajinder Jindal and Yash Paul Jindal who was Whole Time Director and Chairman of JCL, respectively, saying the fines were neither arbitrary nor excessive. "In our opinion, the penalty imposed is "excessive" and disproportionate to the violation and is also discriminatory. "The company is a running concern. Penalising the firm with such a heavy penalty is in fact penalising the shareholders, which is not justifiable especially for a running company," the appellate tribunal said in its order dated February 23. The ruling came after JCL, Sandeep Jindal, Rajinder Jindal and Yash Paul Jindal challenged the order pa

NSE gets Sebi approval to launch Social Stock Exchange as separate segment

Eligible NPOs can begin by registering on the SSE segment. Post-onboarding, NPOs can initiate the fund mobilisation process by issuing instruments

With IPOs losing steam, Sebi steps in with hard underwriting move

Watchdog looks to clear air for allowing investment bankers to buy unsubscribed portion of a share sale

Companies disclosing ESG data report nearly 15% increase in scores

According to a report by CareEdge Research, ESG reporting by Indian corporates has improved by 160 per cent

Only 34% firms meet Sebi's requirement to raise 25% fund via debt: Analysis

Only 34 per cent of the 320 AAA- and AA-rated companies have met their 25 per cent incremental fund raising through debt instruments as of FY22, nearly three years after market regulator Sebi's mandate for such firms, an analysis showed. These companies have an outstanding debt of Rs 34 lakh crore as March 2022, according to an analysis by India Ratings, which says that these companies will have to borrow an additional Rs 6,890 crore by FY24 to meet the Sebi regulation. In FY19, Sebi passed a guideline wherein the listed large corporates with borrowings of Rs 100 crore or more and with credit ratings of AA and above would have to borrow 25 per cent or more of the incremental borrowings through bonds. The regulator allowed them to meet the norm in a contiguous block of two years. And the companies were to meet the criteria beginning FY20. The regulation also sets a penalty of 0.2 per cent of the balance debt amount in case a company fails to raise the required percentage of funds ..

Disclosure gains

Sebi's proposals on listing norms would aid transparency

Sebi bans Capital Worth, its partners from securities market for 3 years

Sebi has banned Capital Worth Research House and its partners from the securities market for a period of three years for providing unauthorised investment advisory services. Besides, they have been directed to refund more than Rs 1.54 crore to clients within three months. The debarment of the entity and its partners will continue till the expiry of three years from the date of completion of the refund to investors, according to an order passed on Wednesday. Capital Worth is a partnership firm and its partners are Ankit Shrivastav, Mohammed Aamir Shaikh, Shahid Rangrej and Sameer Memon. Sebi found that Capital Worth by engaging in the activities and holding itself out as an 'investment adviser', without having a valid certificate of registration violated Investment Adviser (IA) rules. The regulator also noted that the partners of Capital Worth are fully responsible for the contravention committed by the firm. More than Rs 1.54 crore was credited in the account of Capital Worth bet

Sebi plans to make registration mandatory for ESG rating providers

Sebi proposes framework for ESG scoring parameters and rating providers in fresh consultation paper