Page 94 - Sebi

Sebi reduces turnover requirement for agri commodity options to Rs 100 cr

Capital markets regulator Sebi on Monday lowered the required average daily turnover for launching options on agricultural and agri-processed commodities to Rs 100 crore from Rs 200 crore earlier. This change will take effect from June 1, Sebi said. The decision has been taken keeping into account representations received from market participants and deliberations by Sebi's Commodity Derivatives Advisory Committee (CDAC). "It is decided that for launching options contracts on agricultural and agri-processed commodities, the average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months shall be Rs 100 crore instead of existing Rs 200 crore," Sebi said in a circular. With regards to eligibility criteria for launching options on commodity futures, Sebi said that options can be traded on a stock exchange only if the underlying commodity futures meet certain criteria. For agricultural and agri-processed commodities, the average

Sebi issues SOP for handling of commodity derivatives exchange outage

Sebi on Monday came out with a standard operating procedure (SOP) asking stock exchanges having commodity derivatives segment to inform about trading disruptions within 15 minutes of such occurrences and extending the trading time by 30 minutes in certain outage conditions. Stock exchange outage means stoppage of continuous trading, either suo moto by exchange or by virtue of reasons beyond control of stock exchange. If an outage occurs on one exchange, market hours will remain unchanged on unaffected exchange, Sebi said in a circular. Under the SOP, the stock exchange that suffered the outage will have to intimate Sebi immediately after the occurrence of the outage, while the bourse has to inform market participants and trading members within 15 minutes from the occurrence of an outage through broadcast message and by publishing on its website. Further, the affected stock exchange would update about the ongoing outage in the time intervals of 45 minutes from the initial intimation

Sebi asks social enterprises to submit impact report for FY24 by Oct-end

Capital markets regulator Sebi on Monday asked social enterprises, which have registered or mobilised funds through social stock exchange (SSE), to submit an 'annual impact report' for the financial year 2023-24 to such bourse by October-end. The annual impact report to SSE captures the qualitative and quantitative aspects of the social impact generated by the social enterprise. In case a Not for Profit Organization (NPO) is only registered without listing any security, such report is required to cover the NPO's significant activities, intervention, and programmes, among others. "Social enterprises which have registered or raised funds through SSE shall be required to submit Annual Impact Report to SSE by October 31, 2024 for the Financial Year 2023-24," Sebi said in a circular. In September 2023, Sebi asked social enterprises raising funds using SSE to disclose the annual impact report within 90 days from the end of financial year. With an aim to assess the impact created by socia

Sebi tweaks framework for price band formulation in derivatives segment

The regulator has enhanced the number of trades, unique client codes, and trading members for 'flexing' of price bands. Flexing is changing the price band towards the direction of the trade

Sebi action on fantasy games operating on real-time stock market data

At least once in a financial year the list of activities and entities using this data will have to be reviewed by the board of MIIs

Sebi mandates 10-minute video disclosure for companies launching IPOs

"The content of the AV must be factual, non-repetitive, non-promotional and shall not be misleading in any manner," said Sebi

Sebi launches audio-visual representation of public issues' disclosures

Markets watchdog Sebi on Friday decided to introduce audio-visual (AV) representation of disclosures made by companies in their offer documents for public issues, a move that will help investors have an easier understanding about the key features of an offer. Such AV will be prepared and placed in the public domain for all main board public issues. The same will initially be in bilingual format -- English and Hindi. This framework will be applicable to all DRHP filed with Sebi on or after July 1 on voluntary basis and from October 1 onwards on mandatory basis, the regulator said in a circular. It is expected that the AV will provide ease in understanding the salient features and also provide reference to various disclosures of the proposed public issue. "It has been decided that salient disclosures made in the Draft Red Herring Prospectus (DRHP), Red Herring Prospectus (RHP) and Price Band Advertisement for public issues shall also be made available in Audio Visual format (AV) for

Adani Enterprises recovers all stock mkt losses sparked by Hindenburg

The flagship's stock rose 1.7% to 3,445.05 in Mumbai on Friday and has now almost tripled since its nadir in February 2023

Sebi proposes measures to ease ESG disclosures by listed companies

Sebi has also proposed to make the disclosures for value chain partners voluntary for the first year instead of comply or explain basis

Sebi proposes to include Green Credit Program under BRSR framework

Capital markets regulator Sebi has proposed to include disclosure pertaining to the 'Green Credit Program' by listed companies under the Business Responsibility and Sustainability Reporting(BRSR) framework. The Green Credits can be generated by a listed company and its value chain partners through plantations of trees on waste or degraded lands and river catchment areas. In its consultation paper, Sebi has proposed that 'green credits' generated by the listed company and the value chain partners can be added as a leadership indicator under Principle 6 of BRSR, which states that businesses should respect and make efforts to protect and restore the environment. "Inclusion in BRSR shall incentivise listed entities and their value chain partners to participate in the generation of green credits by following environmentally sustainable activities," Sebi said. The disclosure is also in line with the Ministry of Environment, Forest and Climate Change notification issued in February 2024.

Sebi cracks whip in Superior Finlease stock price manipulation case

It has barred 17 entities and individuals from the securities market for five years and two others for three years each for allegedly operating a pump and dump scheme

SAT nixes Sebi order on Linde India, asks firm to appear for document check

Market regulator had asked NSE to do a valuation of the company and its related party transactions

Sebi's new guidelines on mkt rumour to help in fair pricing of M&A: Experts

Sebi's new guidelines for managing stock price impact arising from market rumours will ensure that the share price used in the merger and acquisition (M&A), buyback, and other transactions are not artificially influenced by speculative market activities, experts said on Wednesday. Market rumours pertaining to a company's business can create significant volatility in stock prices, often leading to transactions that don't reflect a company's true value. This market rumours could be related to anything, including exiting of top management, cancellation of an order and financial health. "Sebi's framework addresses this issue by establishing a mechanism to determine the unaffected price -- the price of a stock before the rumour surfaced. "This price would be used for transactions unless the rumour itself caused price fluctuations in subsequent trading days," Trivesh, Chief Operating Officer of Tradejini, said. In its circular on Tuesday, Sebi outlined the framework for calculating the

Ixigo's parent firm, Bansal Wire Industries get Sebi's nod to float IPO

Le Travenues Technology Ltd, which operates the travel booking platform ixigo, and steel wire manufacturer Bansal Wire Industries have received Sebi's go-ahead to raise funds through Initial Public Offering (IPOs), an update with the markets regulator showed on Wednesday. The two companies, which filed their preliminary IPO papers with Sebi in February and March, obtained their observations during May 14-17. In Sebi's parlance, obtaining observations means the regulator's go-ahead to float public issue. The Gurugram-based Le Travenues Technology's proposed IPO will be a combination of a fresh issue of equity shares worth Rs 120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares by existing shareholders, according to the Draft Red Herring Prospectus (DRHP). SAIF Partners India IV Ltd, Peak XV Partners Investments V (formerly known as SCI Investments V), Micromax Informatics Ltd, Placid Holdings, Catalyst Trusteeship Ltd, Madison India Capital HC, Aloke Bajpai and Rajnish

JM Financial, 6 others settle case with Sebi; pay over Rs 23 lakh fine

JM Financial Ltd and six others have paid a little over Rs 23 lakh as settlement charges to Sebi to settle a case related to an alleged violation of disclosure rules and merchant banking norms in the matter of Elcid Investments Ltd. JM Financial has paid Rs 15 lakh as a settlement fee, while Mahesh Chimanlal Dalal, Bharat Bhasker Talati, Ketan Chatrabhuj Kapadia, Dipika Amar Vakil, Amrita Amar Vakil, and Varun Amar Vakil paid collectively Rs 8.12 lakh towards the settlement charges, Sebi said in an order on Tuesday. The order came after the applicants proposed to settle the instant proceedings initiated against them, without "admitting or denying the findings of facts and conclusions" of law. The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Dalal, Talati, Kapadia, Dipika Amar Vakil, Amrita Amar Vakil and Varun Amar Vakil for allegedly violating delisting rules, disclosure norms and the Companies Act. In addition, JM Financial Ltd also

Sebi tweaks methodology for calculating market cap-based rankings

Instead of a single-day market cap, the rankings will now be based on the average market cap for six months

Sebi amends rule to facilitate ease of doing biz for firms planning IPOs

To facilitate ease of doing business for companies planning IPOs, Sebi has said any change in the size of offer for sale (OFS) requiring fresh filing will be based on only one of the criteria -- either issue size in rupee or number of shares. Further, promoter group entities and non-individual shareholders holding more than 5 per cent of the post-offer equity share capital can be permitted to contribute towards the shortfall in minimum promoters' contribution (MPC) without being identified as a promoter, according to a notification issued by Sebi. Companies promoted by entrepreneurs often have several rounds of funding prior to listing their equity shares on the stock exchanges. In such situations, the promoters' holding may fall short of the minimum promoter contribution i.e., 20 per cent of the post-offer equity share capital. While the current ICDR (Issue of Capital and Disclosure Requirements) rule permits certain categories of investors to contribute equity shares held by them

Sebi changes rule to determine mcap, 6-month average to be used now

Markets regulator Sebi has revamped the method for calculating the market capitalisation of listed companies under the Listing Obligations and Disclosure Requirements (LODR) rules. Instead of using the market capitalisation of a single day (currently March 31), listed companies will now use the "average market capitalisation" for a six-month period. Market experts believe the market capitalisation of a listed entity keeps fluctuating on a daily basis based on market dynamics and, therefore, an average of market capitalisation figures over a reasonable period of time (six months) would more accurately reflect the market size of the listed entity and consequently the ranking, vis-a-vis its peers. The changes came after a recommendation of an expert committee chaired by Sebi's former whole-time member S K Mohanty in a bid to promote ease of doing business. The amendment aims to specify a defined period for calculating average market capitalisation. The new amendment would come into fo

RBI in talks with Sebi to allow mutual funds to sell debt to ARCs

ARCs are not allowed to buy debts from MFs currently

Market regulator Sebi offers shield against M&A stock price disruptions

Framework part of rumour verification norms that kick in from June 1; Industry awaited detailed rules