Page 89 - Sebi

Welcome regulation

Sebi's new rules and clarifications will aid market operations

Packaging equipment firm Mamata Machinery files IPO papers with Sebi

Packaging equipment manufacturer Mamata Machinery Ltd has filed preliminary papers with capital markets regulator Sebi to float an initial public offering (IPO). The Gujarat-based company's initial share sale is entirely an offer for sale (OFS) of 73.82 lakh equity shares by promoters, according to the draft red herring prospectus (DRHP). Those selling shares under the OFS are Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP. Since it's an OFS, the company will not receive any proceeds from the public issue, and the entire fund such proceeds will go to the selling shareholders. The company, in its draft papers filed on Friday, 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 establi

Sebi raises basic demat account limit to Rs 10 lakh to boost participation

To boost participation of small investors in the securities market, Sebi on Friday increased the threshold for the basic service demat account to Rs 10 lakh from the current Rs 2 lakh. The new guidelines will come into force from September 1, the Securities and Exchange Board of India (Sebi) said in a circular. Increasing the limit of securities' value held in the Basic Services Demat Account (BSDA) will encourage small investors to trade in the stock market and ensure their financial inclusion. A basic service demat account, or BSDA, is a more basic version of a regular demat account. The facility was introduced by markets regulator Sebi in 2012 to reduce the burden of demat charges on investors with small portfolios. On eligibility for BSDA, Sebi said an individual is eligible for a BSDA if he/she meets certain criteria such as the investor has only one demat account as the sole or first holder, has only one BSDA in his name across all depositories and the value of securities in

Sebi cancels registration of LFS Broking, bans MD for 5 yrs over violations

Markets regulator Sebi on Friday cancelled the registration of LFS Broking and barred its MD Saiyad Jiyajur Rahaman from being employed or associated with any registered intermediary for five years for violating market norms. The regulator also cancelled the registrations of LFS Broking as a stockbroker, portfolio manager, depository participant, and research analyst. "I note that since the Noticee No. 2 (Saiyad Jiyajur Rahaman) has not acted with integrity, and honesty and has not displayed ethical behaviour and fairness, he ceases to be a fit and proper person in terms of the Intermediaries Regulations," Sebi's Whole time member Kamlesh C Varshney said in the 56-page order. Further, Sebi observed the conduct of LFS Broking, where it allowed to use the registration certificates in collusion with Rahman, to deceive investors for the illegal mobilisation of funds. The markets watchdog holds that the brokerage firm is also not satisfying the criteria prescribed under the Intermediari

Sebi proposes mandatory disclosure of 'risk-adjusted return' by MFs

Capital markets regulator Sebi on Friday proposed mandatory disclosure of 'risk-adjusted return' along with the return of a mutual fund scheme to help investors make informed investment decisions. Risk-adjusted return (RAR) of a scheme portfolio represents a more holistic measure of the scheme's performance because it quantifies the amount of return generated by a mutual fund scheme for each unit of risk taken to achieve that return. The current regulatory framework does not mandate the disclosure of RAR along with the returns of an MF scheme. Further, there is no uniform practice followed by asset management companies (AMCs) regarding disclosure of RAR of their scheme. The return on investment is a major factor attracting investors to invest in any MF scheme and is highlighted by the AMCs while marketing respective schemes. Considering the significance of volatility of performance in determining the suitability of MF schemes, it is desirable that the RAR of the scheme is disclose

Sebi open to taking F&O products off the shelf; expert panel to assess move

Will be guided by recommendations of expert group

India planning to reduce paper work for foreign investors buying govt debt

The Securities and Exchange Board of India is discussing with the Reserve Bank of India to make the registration and maintenance process easier

New Sebi rules likely to spur founders to revive delisting offers

For founders, 'listing had become a no-exit' endeavor but with this framework 'both entry and exit will be possible and realistic', said Makarand Joshi, an industry expert

Jio Fin, Zomato part of Nifty50? List of likely F&O inclusions, exclusions

Market regulator Sebi tweaked the selection criteria for stocks to join and exit the derivatives (F&O) segment on Thursday, June 27

Is your finfluencer trustworthy? Sebi's new rules will help you decide

Sebi is cracking down on unregulated financial influencers who might be giving misleading investment advice. These finfluencers often work on commission.

Sebi permits up to 100% NRI contribution for FPIs based out of GIFT IFSC

Markets regulator Sebi has allowed up to 100 per cent aggregate contribution by non-resident Indians, Overseas Citizens of India, Resident Indians in the corpus of FPIs that are based out of International Financial Services Centre (IFSC). The move is expected to enhance investment by Foreign Portfolio Investors (FPIs) in India. In a circular issued on Thursday, Sebi said it has amended FPI rules to "provide flexibility of having up to 100 per cent aggregate contribution by non-resident Indians (NRIs), Overseas Citizens of India (OCIs) and Resident Indians (RI) Individuals in the corpus of FPIs based in IFSCs in India and regulated by International Financial Services Centres Authority (IFSCA)". Over the years, there has been a consistent demand to channel more NRI and OCI investments into the Indian securities markets by enabling greater participation of NRIs and OCIs in FPI corpuses. In the July 2019 budget speech, Finance Minister Nirmala Sitharaman had also recognized that despit

F&O entry, exit revamped: How Sebi has raised bar for stock options trading

The recent surge in F&O activity, particularly focused on individual stocks, has triggered SEBI's intervention

Reviewing money goals, trimming portfolio: Top personal finance stories

This week we write about mid-year financial checklist, selecting funds to drop, and the yoga gear you must have

Infosys, CEO Parekh settle insider trading matter with Sebi; pay Rs 25 lakh

Matter pertains to 2020-21 when IT major entered into a partnership with global asset manager Vanguard

Sebi considers sweeping changes to disclosure, listing requirements

Committee led by former whole-time member submits report on streamlining regulations

Sebi announces norms to restrict finance influencers' recommendations

This ensures that mutual funds, stock brokers, research analysts, or registered investment advisors do not associate with finfluencers

Quant Mutual's clients pull $168 million in three days after Sebi probe

The Mumbai-based asset manager, one of the fastest growing mutual funds in India, has seen its assets soar lately to Rs 93,000 crore ($11.1 billion) from Rs 240 crore in 2019.

Groww files for Nifty EV & New Age Automotive FOF with SEBI

The scheme aims to generate long-term capital growth by investing in securities that are part of the Nifty EV & New Age Automotive Index

Stock trading gets easier for company insiders in India: Here is how

This new rule helps company insiders trade their own company stock more easily and transparently, as long as they're not using insider information (UPSI) to make unfair profits.

Sebi eases 'trading plans' framework for cos' key managerial personnel

Capital markets regulator Sebi on Wednesday eased 'trading plans' framework for companies' insiders, who are perpetually in possession of unpublished price sensitive information. Under the rule, 'Trading Plans' (TP) enable persons like senior management or Key Managerial Personnel (KMP), who are perpetually in possession of Unpublished Price Sensitive Information (UPSI), to trade in securities in a compliant manner. In a notification, Sebi said that a minimum cool-off period between disclosure and implementation of trading plan has been reduced to four months from six months earlier. It means trading plans can be executed only after 6 months from its public disclosure. The regulator said that the insider will have flexibility, during formulation of TP, to provide price limits -- upper price limits for buy trades and lower price limits for sell trades. Such price limit will be within +/-20 per cent of the closing price on date of submission of TP. If the price of the security is .