Page 96 - Sebi

AIFs must comply with certification requirement by May 2025: Sebi

All alternative investment funds (AIF) with active schemes and those with pending scheme applications as on May 10 must comply with relevant certification requirement by May next year, markets regulator Sebi said on Monday. "The requirement of obtaining the certification will be complied with on or before May 9, 2025, for the existing schemes of AIFs and, schemes of AIFs whose application for launch of scheme pending with Sebi as on May 10, 2024," the Securities and Exchange Board of India (Sebi) said in a circular. Further, the regulator said the trustee/sponsor of AIFs, will ensure that the 'Compliance Test Report' prepared by the manager includes compliance with the provisions of the rules. The new requirement is aimed at boosting competency and professionalism in the AIF space. In a notification dated May 10, Sebi said, "At least one key personnel, amongst the associated persons functioning in the key investment team of the manager of an Alternative Investment Fund, shall obtai

Bond market boost, jewellery for the ages: Top personal finance stories

Our top stories this week tell you about how to enter the bond market and how traditional jewellery is being redesigned

Sebi proposes to cut trading size of privately placed InvITs to Rs 25 lakh

Markets regulator Sebi on Thursday proposed to drastically reduce the trading lot size of privately placed infrastructure investment trusts (InvITs) to Rs 25 lakh in a bid to boost investors' participation and increase liquidity of such investment vehicles. The current trading lot for secondary market trading for privately placed InvITs is set at Rs 1 crore. Further, if the InvIT invests at least 80 per cent of its asset value in completed and revenue-generating assets, then the trading lot is Rs 2 crore. In its consultation paper, Sebi has proposed "to reduce the trading lot size for the purpose of trading units of privately placed InvITs on designated stock exchanges from Rs 1 crore/ Rs 2 crore to Rs 25 lakh". The proposal will help in increasing the liquidity of privately placed InvIT units by allowing a broader base of investors to participate in the market and promote diversification of investment portfolios, enabling investors to better manage risk. Additionally, the regulato

Sebi proposes direct transfer of securities to clients' accounts

"In a move to enhance operational efficiency and reduce the risk to clients' securities, it has been deliberated to make the process of direct payout of securities to the client account mandatory,"

Sebi proposes easing disclosure rules for non-convertible securities

To promote ease of doing business for issuance of non-convertible securities, Sebi on Thursday proposed removing the requirement to disclose the PAN and personal address of issuers' promoters in the offer document along with other relaxations in disclosure guidelines. The current regulatory framework of Sebi's (Issue and Listing of Non-Convertible Securities) rules or NCS norms mandates disclosure of complete profile of promoters of the issuer in the offer document, which includes disclosure of PAN, personal address among others. Additionally, the regulator, in its consultation paper, suggested relaxation in the requirement of providing certain business and commercial details in case of purchase or acquisition of immoveable property in the offer document. The Securities and Exchange Board of India (Sebi) has sought comments from the public till May 30 on the proposals in its consultation paper, the regulator has proposed that details regarding branches or units of the issuer as on t

Front-running, insider trading: Amfi rulebook to curb misconduct in a month

Move follows Sebi nod for institutional mechanism to curb front-running and insider trading

Sebi weighs mandatory direct securities payout to client's account

To enhance operational efficiency and reduce the risk to clients' securities, markets regulator Sebi on Thursday proposed making the process of direct payout of such securities to the client's account mandatory. Currently, the clearing corporation credits the pay-out of securities in the pool account of the broker, who then credits the same to the respective client's demat accounts. Further, a facility of direct delivery to investors was introduced in February 2001. "It has been decided that the process of securities payout directly to the client account shall now be mandatory," the Securities and Exchange Board of India (Sebi) said in its consultation paper. The securities for payout should be credited directly to the respective client's demat account by the clearing corporations. Moreover, clearing corporations should provide a mechanism for Trading Member(TM)/clearing members (CM) to identify the unpaid securities and funded stocks under the margin trading facility. In case of

Fairfax-backed insurance firm Go Digit set to float IPO on May 15

Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, is set to launch its initial public offering on May 15. The initial share sale will conclude on May 17 and the bidding for anchor investors will open for a day on May 14, according to the Red Herring Prospectus (RHP). Go Digit's proposed IPO comprises fresh issuance of equity shares worth Rs 1,125 crore and an Offer For Sale (OFS) of 5.47 crore equity shares by a promoter Go Digit Infoworks Services and existing shareholders. At present, Go Digit Infoworks Services owns an 83.3 percent stake in the company. Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes. Cricketer Virat Kohli and his wife and actor Anushka Sharma are among the investors in the firm. They are not selling any shares in the IPO. In March, Go Digit secured approval from the Securities and Exchange Board of

Sebi extends settlement scheme period till Jun 10 in stock option cases

Capital markets regulator Sebi on Wednesday extended the settlement scheme period till June 10 for entities involved in reversal trades in the stock options segment on BSE in 2014 and 2015. The settlement scheme commenced on March 11 and was scheduled to conclude on May 10. "It has been observed that during the last few days, a large number of entities have shown interest in availing the scheme. Considering the interest of entities in availing the scheme, the competent authority has extended the period of the scheme till June 10, 2024," Sebi said in a statement. The regulator, in March, introduced the ISO Settlement Scheme 2024, which provides a settlement opportunity to those entities that have executed trade reversals in the stock options segment of BSE during the period April 1, 2014, to September 30, 2015, and against whom adjudication proceedings have been initiated and are pending before any forum or authority. After the expiry of the scheme period, actions as per the relevan

Sebi bans Indus Weir Industries, directors from securities market for 3 yrs

Sebi on Wednesday barred 10 entities, including Indus Weir Industries, its directors from the securities market for three years for indulging in a fraudulent scheme of raising funds from investors by issuing preference shares without complying with the market norms. Further, Sebi directed Indus Weir Industries Ltd (IWIL), its managing directors, Prince Rana and Anuresh to jointly and severally refund the money collected through the issue of RPS to the allottees along with an interest of 8 per cent per annum within five months. Also, IWIL, Rana and Anuresh were restrained from accessing the capital market for three years till the date of refund of money to the allottees. In addition, Rana and Anuresh were barred by Sebi from associating themselves with any listed public company or any Sebi-registered intermediary for three years or till the date of refund of money to the allottees, whichever is later. In its investigation, Sebi found that IWIL had mobilised funds from a large set of

K M Birla's Hindalco Industries mulls seeking $1.2 bn in Novelis IPO

Hindalco may target a valuation of about $18 billion for Atlanta-based Novelis, the people said, asking not to be identified because the matter is private

Sebi comes out with strict rules to tackle misconduct by employees

Capital markets regulator Sebi has put in place stricter norms to tackle any misconduct and corrupt practices by its employees. Amending rules governing its employees' services, the markets regulator said that a competent authority can "direct recovery from an employee of the amount of pecuniary loss caused to the Board (Sebi) by all means available to the Board under the law". This amount could be recovered from the pay and other amounts due to the staffers. This step can be taken if an employee is allegedly acted for an improper purpose or in a corrupt manner or exercised his/her powers with corrupt motive. In its notification dated May 6, Sebi said that the new framework would be also applicable to those employees who have resigned or retired from the services or have completed the tenure of deputation. The new rules have been made applicable from the same date. It, further, said, the gratuity payable to an employee may be withheld either in full or part, during the pendency of

Sebi slaps Rs 15 cr fine on Panchariya in Winsome Yarns GDR manipulation

In its order passed in November 2023, the Securities Appellate Tribunal (SAT) affirmed Sebi's findings with respect to the first leg of the transaction about fraudulent activities in the GDR issuance

Sebi imposes stringent measures to address misconduct among its staff

Amended Employees Service Regulation to include recovery of monetary loss, whole-time members and the chairperson are not covered

NSE to run special trading session on May 18 with disaster recovery switch

The special live trading session will have intra-day switch over from primary site to disaster recovery site

Sebi rejects NSE's proposal to extend trading hours for equity derivatives

Capital markets regulator Sebi has rejected a proposal by the National Stock Exchange (NSE) to extend the trading hours in the equity derivatives segment citing a lack of feedback from the stock brokers community. "Currently, there is no plan to extend the timings as Sebi has returned our application as the stock brokers have not given the feedback that Sebi wanted. So, as of now, the extended time frame (plan) is shelved," NSE MD and CEO Ashishkumar Chauhan said in a post-earnings analysts call. This came after the NSE had urged Sebi to extend trading hours in the equity derivatives segment in a phased manner. This was aimed at potentially curtailing the overnight risk arising from global information flow. Sriram Krishnan, Chief Business Development Officer of NSE, had told PTI in September that the bourse was planning a session from 6 pm to 9 pm after a break from the closure of the regular session from 9.15 am to 3.30 pm. Based on the response, a gradual extension of the market .

14 hours a day: Global stock exchanges with trading time more than BSE, NSE

By definition, 'trading hour' is defined as the time span during which a stock exchange is open. During this period, shares and derivative contracts are bought and sold

Plant-based speciality firm Sanstar gets Sebi's nod to float IPO

Plant-based speciality products company Sanstar Ltd has received Sebi's go-ahead to float an initial public offering, an update with the markets regulator showed on Tuesday. The proposed initial public offering (IPO) comprises a fresh issue of 4 crore shares and an Offer For Sale (OFS) of up to 80 lakh shares by its promoters and promoter group selling shareholders, according to the draft red herring prospectus (DRHP). According to market sources, the IPO size is expected to be Rs 425-500 crore. Also, the company may consider a pre-IPO placement of up to 40 lakh equity shares. If such placement is completed, the fresh issue size will be reduced The Ahmedabad-based company, which filed its draft IPO papers with Sebi in January this year, obtained its observations on April 30, as per the update. In Sebi's parlance, obtaining observations means its go-ahead to float the public issue. Going by the draft papers, proceeds from the fresh issue will be utilised to fund the capital expend

Sebi no to market hour extension proposal due to lack of consensus: NSE

Stock brokers not on the same page over costs, tech needs

Market regulator Sebi's action on SME for manipulating financials

Bars Add-Shop E-Retail; over 46% of sales in three FYs fake