Page 80 - Sebi

Sebi proposes changes in debenture trustee appointment to smoothen process

To legally validate and streamline disclosure in respect of debenture trustee appointments in offer documents, markets regulator Sebi has proposed to replace the term 'consent letter' with 'debenture trustee agreement'. The change will streamline the process for appointing debenture trustees in the issuance of securities, ensure transparency in the appointment of debenture trustees, and play a crucial role in the securities market. In a consultation paper floated on Saturday, the markets watchdog proposed replacing the term "consent letter" with "debenture trustee agreement" in Sebi's (Issue and Listing of Non-Convertible Securities) rules or NCS regulations. The debenture trustee agreement (DTA), which legally validates the appointment of a debenture trustee, is considered by the regulator to be more significant than the previously used term 'consent letter'. The change will help investors make more informed decisions when investing in debentures. Earlier, a working group noted t

TruAlt Bioenergy files IPO papers with Sebi as it aims to mop up Rs 750 cr

Leading biofuel producer TruAlt Bioenergy Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO is a mix of fresh issuance of equity shares worth Rs 750 crore and an offer for sale (OFS) of up to 36 lakh equity shares by promoters, according to the draft red herring prospectus (DRHP. The OFS consists of up to 18 lakh equity shares each by Dhraksayani Sangamesh Nirani and Sangamesh Rudrappa Nirani. The company may consider raising Rs 150 crore under the pre-IPO placement round. If such placement is completed, the fresh issue size will be reduced. Out of the proceeds from the fresh issuance, Rs 425 crore will be utilised for funding working capital requirements, Rs 172.68 crore for setting up multi-feed stock operations, besides, a portion will be used for general corporate purposes. Based in Bengaluru, TruAlt Bioenergy focuses on ethanol production, with a daily production capacity of 1,400 ...

Sebi releases guidelines for market borrowing by Category I, II AIFs

Capital markets regulator Sebi on Monday came out with guidelines for borrowing by Category I and Category II alternative investment funds (AIFs), along with the maximum permissible limit for extension of tenure by Large Value Fund for Accredited Investors (LVFs). Under the rule, Category I and II AIFs are not allowed to borrow or use leverage for investments, except in limited cases for temporary needs. These AIFs are allowed to borrow funds to address temporary funding needs or manage day-to-day operational expenses, with specific limitations. Such borrowing is permitted for up to 30 days, can occur no more than four times in a calendar year, and must not exceed 10 per cent of the investable funds. To facilitate ease of doing business and provide operational flexibility, Sebi has allowed Category I and Category II AIFs to borrow for the purpose of meeting temporary shortfall in amount called from investors for making investments in investee companies ('drawdown amount'), accordin

Sebi to expand scope of ESG finance framework to more products: Report

The Securities and Exchange Board of India will consult on introducing social bonds, along with sustainable and sustainability-linked bonds

Sebi categories dues worth Rs 76,293 crore as 'difficult to recover'

Capital markets regulator Sebi has segregated dues to the tune of Rs 76,293 crore under "difficult to recover" category at the end of March 2024, marking an increase of 4 per cent from the preceding year. Of this, a huge chunk is on account of cases pending before court-appointed committees. Difficult to recover (DTR) dues are those that could not be recovered even after exhausting all modes of recovery. "Segregation of such DTR dues is purely an administrative act and this will not preclude the recovery officers from recovering the amount so segregated as DTR as and when there is a change in any of the DTR parameters," Sebi said in its annual report for 2023-24. As of March 31, 2024, Sebi identified 807 cases as DTR, with a total outstanding of Rs 76,293 crore, up from 692 cases amounting to Rs 73,287 crore the previous year, according to the report. Among these 807 cases, 36 are pending due to ongoing proceedings in State PID courts, National Company Law Tribunal (NCLT), Nationa

Upcoming IPO: Ethanol producer TruAlt Bioenergy files DRHP; details

The offer for sale consists of up to 18 lakh equity shares by Dhraksayani Sangamesh Nirani, and up to 18 lakh equity shares by Sangamesh Rudrappa Nirani

Street signs: A new charge to break resistance, Sebi casts the net, more

Sebi has proposed mandating that clearing corporations periodically pass on the interest income earned on cash collaterals to brokers

Sebi proposes to introduce liquidity window facility for bond investors

Sebi has proposed to introduce a new liquidity window facility for investors in debt securities through the stock exchange mechanism, a move aimed to enhance liquidity in the corporate bond market, particularly for retail investors. In its draft circular released on Friday, Sebi proposed that the liquidity window facility seeks to mitigate the issue by providing a regulated mechanism for issuers to offer put options on debt securities at pre-specified dates or intervals. The facility will allow issuers to provide put options to investors, enabling them to sell their debt securities back to the issuer before maturity. It can be provided only for prospective issuances of debt securities through public issue process or on a private placement basis (proposed to be listed). The Securities and Exchange Board of India (Sebi) has invited public comments on the draft circular till September 6. As per the circular, Sebi said "an entity issuing debt securities, which are proposed to be listed

Sebi chairperson must resign, JPC probe into Adani 'scam' essential: Cong

The Congress on Saturday cited a media report which flagged alleged conflicts of interest against SEBI chairperson Madhabi Buch and said her continuance as the head of the capital markets regulator is "untenable". The opposition party said Buch must resign and a full Joint Parliamentary Committee (JPC) investigation must be conducted into the Adani "mega scam". Congress general secretary in-charge communications Jairam Ramesh cited an article by The Morning Context which raises issues of Buch's alleged conflicts of interest. The media report raises questions such as has Buch recused herself from all matters involving companies that private equity firm Blackstone has a stake in and how many Blackstone companies find a place on that recusal list. Sharing the report on X, Ramesh said, "Yet another day and yet more revelations on the multiple conflicts of interest in the SEBI chairperson's activities." "The SEBI chairperson's conflicts of interest have already made a mockery of the ..

Sebi proposes expansion of sustainable fin framework in securities market

Markets regulator Sebi has proposed expansion of the sustainable finance framework in the securities market by introducing a new category of financial instruments. This category will include Social Bonds, Sustainable Bonds, and Sustainability-linked Bonds in addition to the current green debt securities. It aims to provide issuers with flexibility in raising funds for projects that align with environmental, social, and governance (ESG) objectives. In a consultation paper released on Friday, Sebi proposed that issuers, in addition to existing green debt securities, be allowed to raise funds through issuance of social bonds, sustainable bonds, and sustainability-linked bonds. These bonds will collectively be known as ESG Debt Securities. This will enable issuers to raise money for more sustainable projects, assisting in closing the funding gap for the Sustainable Development Goals. Sebi said it received representations from market participants including the Confederation of Indian ..

Sebi proposes amendments to ease compliance for entities with listed NCDs

Capital markets regulator Sebi on Friday proposed amendments to ease the compliance requirements for entities with listed non-convertible securities. This move will ease the cost of compliance for participants in the financial sector, as announced by the government in FY 2023-24 Budget. In its consultation paper, Sebi proposed aligning the approval and authentication process for financial results of entities with listed non-convertible securities to that of equity-listed entities. This will streamline the procedures, ensuring that financial results are approved by board of directors and signed by a designated official, similar to the requirements for equity-listed entities. The regulator also proposed to align the provisions of disclosure rules for fraud and default by key managerial personnel in entities with listed non-convertible securities with those applicable to equity-listed entities. As per the consultation paper, Sebi said it will also streamline the timeline for notifyin

Sebi chief Buch earned revenue in potential rules violation, show documents

Buch joined SEBI in 2017 and was appointed to the top position in March 2022. In those seven years, Agora Advisory Pvt Ltd in which Buch has 99 per cent shareholding, earned a revenue of Rs 3.71 crore

Investment advisers, analysts must disclose AI tool usage to clients: Sebi

Sebi has proposed that registered Investment Advisers and Research Analysts who employ artificial intelligence (AI) tools in their services must disclose the extent of usage to clients, emphasizing the importance of strong security measures to avoid unintended data exposure. This transparency is crucial for clients to understand how AI tools contribute to their investment decisions and to make informed choices about their advisory services. "The possibility of unintended data exposure highlights the need for strong security measures and clear disclosure to clients about the extent of AI tool usage", Trivesh D, COO at Tradejini, a stock trading platform, told PTI. The Securities and Exchange Board of India (Sebi), in its consultation paper earlier this month, highlighted the growing usage of AI tools in Investment Adviser (IA) and Research Analyst (RA) services. With technological innovations and advancements, many AI tools are currently available in chatbot form such as OpenAI's ..

Fund at heart of Hindenburg charges not domiciled in Mauritius, says FSC

Financial Services Commission of Mauritius on Tuesday said the offshore fund at the heart of the conflict of interest allegation Hindenburg Research levelled against Sebi chief is not domiciled in the Island nation, and that it does not permit the creation of shell companies. In a statement, FSC said it has taken cognizance of the contents of the report published by Hindenburg Research on August 10, 2024, wherein mention has been made of 'Mauritius-based shell entities' and Mauritius as a 'tax haven'. "The report of Hindenburg has further cited 'IPE Plus Fund' is a small offshore Mauritius Fund and 'IPE Plus Fund 1, a fund registered in Mauritius'. We wish to clarify that IPE Plus Fund and IPE Plus Fund 1 are not licensees of the FSC and are not domiciled in Mauritius," it said. Hindenburg on Saturday alleged that Sebi chairperson Madhabi Puri Buch and her husband opened an account in 2015 with a wealth management firm in Singapore to invest an undisclosed sum of money in a ...

No NOC request from NSE for IPO, says Sebi; requests HC to dismiss plea

Replying to a writ petition, it says delay not on the regulator's part

3 entities settle insider trading charges with Sebi in PNB Housing case

Three individuals on Tuesday settled with capital markets regulator Sebi a case pertaining to alleged violation of insider trading rules in the scrip of PNB Housing Finance Ltd after paying Rs 1.56 crore collectively. Those who settled the case are -- Sidhant Chandalia, Naysar Parikh and Ronak Narendra Parikh, according to two separate orders passed by the Securities and Exchange Board of India (Sebi). Individually, Chandalia and Naysar Parikh paid Rs 50.7 lakh each towards the settlement amount, and Ronak Narendra Parikh remitted Rs 45.5 lakh as a settlement charge and Rs 8.98 lakh towards disgorgement of wrongful gain along with interest. "In view of the acceptance of the settlement terms and the receipt of settlement amount..., the instant adjudication proceedings initiated against the Noticee(s) vide SCN (Show Cause Notice) ...is disposed of," Sebi said. The directives came after the three persons filed applications with Sebi proposing to settle the instant proceedings initiat

Ease in perpetual bond valuation norms set to revive market, say investors

Banks had slowed issuing the notes as the 2021 valuation norm change hurt appetite. In January this year, they had sought a relaxation

Upcoming IPO Alert: Inventurus Knowledge Solutions files DRHP with Sebi

Upcoming IPO Alert: With the IPO, Inventurus Knowledge Solutions is offering an offer for sale of up to 28,184,060 equity shares of face value of Re 1 apiece

Inventurus Knowledge Solutions files draft papers for IPO, seeks Sebi's nod

Inventurus Knowledge Solutions Ltd, which provides healthcare support services, has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO). The company's IPO is entirely an Offer For Sale (OFS) of up to 2.82 crore equity shares by promoters and individual shareholders, with no fresh issue component, according to the Draft Red Herring Prospectus (DRHP). Since the issue is completely an OFS, the company will not receive any proceeds from the IPO and the entire fund will go to shareholders. The company, which is backed by Rekha Jhunjhunwala and RARE Enterprises, in its draft papers filed on Monday, said that the objective of the initial share sale is to gain the advantages of listing the equity shares on the stock exchanges. Additionally, the company anticipates that listing the equity shares will boost its visibility and brand image, provide liquidity to its shareholders, and establish a public market for the equity ...

Charges against Sebi hief now beyond ruling party-Oppn debate: Mayawati

Hindenburg Research's allegations against the SEBI chairperson have now gone beyond a debate between the ruling party and the opposition and are affecting the Centre's credibility, BSP chief Mayawati said on Tuesday. She also said that it would have been better if the Centre had ordered a high-level inquiry into the matter by now. Hindenburg Research on August 10 alleged that SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch had stakes in obscure offshore funds used in the alleged Adani money siphoning scandal. Bahujan Samaj Party (BSP) chief Mayawati said in a post on X, "First the Adani Group and now the SEBI chief-related Hindenburg report are again in the news and the allegations and counter-allegations are continuing to such an extent that it is being said to affect the national interest. Despite the clarifications provided by Adani and SEBI, the issue remains on the boil." "By the way, this issue is now beyond debate between the ruling party and the opposition an