Page 50 - Sebi

Sebi considers expanding eligibility for qualified institutional buyer

Markets regulator Sebi is looking to expand the definition of qualified institutional buyers (QIB) and remove the 200-investor cap, allowing angel funds to access a broader pool of accredited investors. This move will enable more wealthy investors to participate, boosting funding for startups. It ensures that only financially strong investors take on high-risk investments, helping Angel Funds raise more capital and support early-stage companies. Angel Funds, a type of venture capital fund, mobilize money from investors to support startups. However, concerns have been raised about inadequate verification of investors' risk appetite, the onboarding of numerous investors without strong financial backing, and potential conflicts with private placement regulations under the Companies Act, 2013. To address these concerns, Sebi previously proposed that only Accredited Investors (AIs) should be allowed to invest in Angel Funds. Now, the regulator is seeking feedback on amending the defini

LCC Projects files draft papers with Sebi, to raise funds via IPO

Ahmedabad-based LCC Projects has filed preliminary papers with the capital markets regulator Sebi to mobilise funds through an initial public offering. The initial public offering (IPO) is a mix of fresh issue of equity shares worth Rs 320 crore and an offer-for-sale (OFS) component of up to 2.29 crore equity shares or 8.43 per cent stake by the promoters, as per the draft red herring prospectus (DRHP). Going by the draft papers filed on Friday, Arjan Suja Rabari and Laljibhai Arjanbhai Ahir will be selling up to 1.14 crore equity shares each through the OFS. The company may raise Rs 64 crore through pre-IPO placement. If the placement is completed then the size of the fresh issue will be reduced. The net proceeds from the fresh issue worth Rs 220 crore will be used by the company to repay debt, Rs 14.91 crore will be used for purchase of equipment and balance for general corporate purposes. LCC Projects is a multidisciplinary engineering, procurement and construction (EPC) compan

Sebi slaps Rs 10 lakh penalty on Axis Securities for violating stock rules

Capital markets regulator Sebi has imposed a penalty of Rs 10 lakh on Axis Securities for flouting stock brokers rules as well as other regulatory norms. The penalty has to be paid by the brokerage firm within 45 days, the regulator said in an order on Friday. In an 82-page order, Sebi found that Axis Securities failed to follow regulatory procedures in several areas, including reporting discrepancies and improper handling of client funds. The market regulator found that Axis Securities had inconsistencies in its enhanced supervision reporting to stock exchanges and in stock statements compared to actual holdings in depository accounts. The Securities and Exchange Board of India (Sebi) also observed that Axis Securities also did not settle clients' funds and securities as per preference obtained from the clients and also failed to provide retention statements with account details. Additionally, the brokerage firm passed on penalties imposed by stock exchanges on it for short ...

Addressed root cause behind NFO frenzy, open to more steps: Sebi's Buch

Sebi chief calls upon Amfi for guidance on the issue

Sebi tweaks investor charter for brokers to boost consumer protection

Markets regulator Sebi on Friday tweaked the investor charter for stock brokers in a bid to boost financial consumer protection alongside enhancing financial inclusion and financial literacy. This came in view of the recent developments in the securities market including introduction of Online Dispute Resolution (ODR) platform and SCORES 2.0 -- a web based centralised grievance redressal system of Sebi. The modified charter includes vision, mission, services provided to investors by brokers, various activities of brokers with timelines, Dos and Don'ts for investors, grievance redressal mechanism and handling of investor's claims in case of default of a trading member along with the format for investor complaints data to be displayed by brokers on their respective websites and trend of annual disposal of complaints. The markets regulator has asked brokers to bring the charter to the notice of their clients by disclosing it on their respective websites, making them available at ...

Monarch Networth Capital settles Sebi case over stock brokers' rule breach

Monarch Networth Capital Ltd on Friday settled with markets regulator Sebi a case pertaining to alleged violation of stock brokers' rule after paying Rs 11.37 lakh towards settlement amount. This came after the entity approached Sebi proposing to settle the pending proceedings "without admitting or denying the findings of fact and conclusions of law" through a settlement order. The stock broker remitted Rs 11.37 lakh and accordingly "the instant proceedings initiated against the applicant (Monarch Networth Capital) vide show cause notice (SCN) dated June 27, 2024, are disposed of ". The Securities and Exchange Board of India (Sebi) had conducted an investigation into the trading activities in the scrip of Atlantaa Ltd during the period August 1, 2022 to November 23, 2022. The investigation was conducted to ascertain whether or not there was any violation of the provisions of Sebi Act 1992 and the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules. Following the ...

NSDL, CDSL launch Unified Investor App: How will it benefit investors?

The app will allow investors to view consolidated data of their investments, including financial statements, mutual fund investments, trading positions across brokers, and tax implications

Small, midcaps' correction: No need for Sebi's statement, says Buch

Sebi Chairperson Madhabi Puri Buch on Friday said there is "no need" for the capital markets regulator to comment on the recent steep correction in small and midcap stocks. Drawing from her statement in March last year on the high valuations in the same stocks, Buch said Sebi had flagged its concerns on the high valuations when it saw a need for it. "On midcaps and small caps, I think that at a point in time when the regulator felt the need to make a statement about it, the statement was made. Today, the regulator feels no need to make an additional statement," she said speaking at an AMFI event here. It can be noted that the small and midcap stocks are in bear territory lately, with some scrips declining by over 20 per cent in quick succession. In March 2024, in what is a rare comment from the regulator, Buch had flagged concerns about the high valuations in the two segments. "There are pockets of froth in the market. Some people call it a bubble, some may call it froth. It may n

Data via depositories' apps to help curb fraud, says Sebi chief Buch

New features to enable voting on resolutions, inheritance tracking

Sebi mulls framework to fast track follow-on offer by REITs, InvITs

Markets regulator Sebi on Thursday proposed a framework for undertaking fast-track follow-on offers by REITs and InvITs to make fundraising more efficient. Additionally, the regulator has proposed a lock-in provision of three years for preferential issue of units of REITs ((real estate investment trusts) and InVITs ((infrastructure investment trusts) allotted to sponsors. The Securities and Exchange Board of India (Sebi) has sought public comments by March 13 on the proposals. In its consultation process, Sebi proposed that 15 per cent of the units allotted to sponsors and sponsor group will be locked-in for a period of three years from the date of trading approval granted for the units. Further, the remaining units allotted to them will be locked-in for a period of one year from the date of trading approval granted for the units. With regards to follow-on offer, Sebi said that the FPO is one of the mechanisms for raising funds subsequent to issue of units after initial public ...

Sebi orders Rs 6.2 crore disgorgement from Mawana Sugars chairman

Son ordered to cough up the sum due to alleged insider trading by Siddharth Shriram, who passed away in 2021

Sebi amends mutual fund rules, sets time limit for NFO fund deployment

Markets regulator Sebi has amended mutual fund rules asking asset management companies (AMCs) to deploy the money collected from investors through New Fund Offers (NFOs) in a prescribed time limit. Additionally, the regulator has mandated disclosure of stress testing for mutual fund schemes to provide greater transparency to investors. These measures, to be implemented from April 1, 2025, are aimed at enhancing operational flexibility for mutual funds while ensuring greater accountability and trust among investors. Regarding deployment timelines, Sebi, in a notification dated February 14 said, "The scheme shall deploy the funds received in the new fund offer within the time period as may be specified by the Board from time to time." This came after the board of Sebi approved a proposal in December asking fund managers to deploy funds collected during an NFO as per the specified asset allocation of the scheme, typically within 30 days. If funds are not deployed within the specified

Sebi cancels registration of 19 foreign venture capital investors

Among the 14 entities whose strike-off dates were available, 11 had been defunct for more than five years, while three had been defunct for periods ranging from 10 months to three years

Sebi cancels registration of 19 FVCI cos for failing to meet eligibility

Capital markets regulator Sebi on Tuesday cancelled the registration of 19 defunct FVCI (Foreign Venture Capital Investors) after they failed to meet the eligibility criteria. The 19 entities include Axis Capital Mauritius, Axis India Infrastructure Holdings, Blackstone Capital Partners (Singapore) VI FVCI Pte Ltd, P6 Asia Holding Investments (Cyprus) Ltd, Pequot India Mauritius IV, Ltd and Omega FVCI Investments Pte Ltd. In its order, Sebi noted that these defunct FVCI companies are no longer in existence as incorporated entities in their respective jurisdictions and thereby no longer satisfy the condition of being an entity incorporated outside India as stipulated in the FVCI Regulations. The regulator observed from the website of the Business Registration Department of Mauritius, Cyprus and Singapore, that the status of 19 FVCIs in their parent jurisdictions was defunct. Additionally, the entities had not informed Sebi about the change in their regulatory status -- the entitie

IPO Rush: Hero Fincorp, LG Electronics, 64 others aim for D-street debut

A total of 66 companies have submitted applications for IPOs, with highly anticipated offerings from Hero Fincorp and LG Electronics awaiting approval from the capital market regulator, Sebi

Explained: Why Sebi has banned 2 portfolio firms from accepting new clients

Sebi on Monday barred Scient Capital and DGS Capital Management from onboarding new clients and accepting additional funds or securities from existing clients after they failed to maintain the minimum

Market regulator Sebi panel to discuss MF-insurance combo product

JanNivesh launch: Buch signals Sebi review, SBI MF scraps fees to push micro SIPs

Sebi issues comprehensive T&C for clients of investment advisors, analysts

The MITC, a two-page document, has been standardised by Sebi in collaboration with the respective industry standards forums for IAs and RAs

Sebi notifies procedure to amend rules, mandates public consultation

To bring more transparency, markets watchdog Sebi has specified a new procedure for making regulations, mandating public consultation and for engagement of stakeholders for modifying norms. In a gazette notification, the regulator has notified Sebi (Procedure for making, amending, and reviewing of regulations) Regulations, 2025. To make regulations, Sebi will publish on its official website the proposal containing the suggested changes to the policy; a statement of the regulatory intent and objectives of the proposed regulations; and the manner, process and timelines for receiving public comments. "A minimum of 21 calendar days shall ordinarily be provided for receiving public comments", Sebi said. On receipt of public comments, the rationale for rejection, if any, of comments will be published on the Sebi's official website. Thereafter, the proposed regulations and the related agenda paper will be considered by Sebi. If the agenda paper has been prepared following a public ...

Sebi updates CAS timelines, extends PAN data deadline to 5 days

The regulator's new circular mandates AMCs and MF-RTAs to submit common PAN data to depositories within five days of month-end, instead of the previous three-day deadline