In a detailed set of Frequently Asked Questions (FAQs) on portfolio managers, Sebi said the disclosure document contains the quantum and manner of payment of fees payable by the client for each activity, portfolio risks and complete disclosures in respect of transactions with related parties.
The fine of Rs 2.54 crore was imposed by the Securities and Exchange Board of India (Sebi) in December 2019 for violating securities market norms by conducting fraudulent trading in the scrip of Gujarat Arth Ltd.
“After hearing the matter for some time we feel it necessary to stay the directions contained in the order. Accordingly, the direction contained in the order shall not be implemented until the next date of hearing,” said the three-member bench of SAT. The matter has been posted for further hearing on December 3.
Sebi whole time member Madhabi Puri Buch will be heading the committee, which has chief executives of stock exchanges and depositories, representatives of various stakeholders and senior officials of Sebi as members.
Under the norms, the firm is required to list its securities on the recognised bourse as the shares were issued to more than 50 persons. It was also required to file a prospectus, among other things, which it failed to do.
Last week, markets regulator Sebi granted exemption to NTPC from certain buyback norms for the proposed merger of its wholly-owned subsidiaries with the parent company.
SMARTs are expected to conduct investor awareness programs for existing and prospective investors in the securities markets.
They have been inducted with effect from October 7, an update by the Securities and Exchange Board of India (Sebi) on Thursday showed.
According to Sebi, an IA or parent entity will fulfil the networth requirement, separately and independently, for each activity undertaken by it.
At present, the regulations required companies doing a rights issue to ensure minimum 90% subscription.
Under the framework, a listed company will appoint one of the Indian depositories as the designated depository for the purpose of monitoring of limits in respect of depository receipts.
The Securities and Exchange Board of India (Sebi) had carried out an inspection in respect to records pertaining to Sharepro Services' RTA activities during January 2013 to December 2014.
Last week, Sebi made it mandatory for listed companies to disclose details of forensic audits immediately after initiation. Once the audit is finished companies are also required to disclose the comments of management on these reports.
Last week, Vedanta Ltd's delisting went from almost-a-success to failure due to a large number of unconfirmed orders.
Sebi has also approved the proposal of strengthening the role of debenture trustees (DTs) to protect the interest of debenture holders.
Vedanta shares were down 9.99 per cent at Rs 109.90 on the BSE, while benchmark Sensex was up 324.14 per cent at 40,879 points.
The recovery of assets would help in meeting the obligations of clients, stock exchanges and clearing corporations, the Securities and Exchange Board of India (Sebi) said in a circular.
“We took this decision after much deliberation. There were some teething problems because stakeholders did not make an effort to get their system ready by August end that led to increased loan on clearing corporations and depositories,” said Tyagi, Chairman, Sebi.
The regulator said to handle such a scenario of ‘near zero’ and negative prices, it had formed a panel to review the risk management framework.
The show-cause notices have been sent to senior executives in treasury and human resources departments then who had access to inside information. It could not be ascertained if these employees are still with DCB Bank.
The Sebi-appointed administrators had continued to accept claim forms from investors of the two companies even beyond the due date as there were many requests from investors to extend the deadline, the regulator said in two separate public notices on Monday.
It also increased the threshold from Rs 10 crore to Rs 50 crore, for filing requirement of rights issue draft letter of offer with the board for its observations.
Now, the deadline has been extended till January 1, 2021, after receiving representation from industry body Amfi (Association of Mutual Funds in India), Sebi said in a circular.
The regulator, in a notice, invited applications "in prescribed format for pre-qualification of agencies for processing and maintenance of records of investor complaints received at Sebi".
In a public notice, Securities and Exchange Board of India (Sebi) has asked it to submit the refund claim by November 30.
The regulator said the lead manger to the issue has to given an undertaking that the company is in compliance with Sebi norms on disclosure norms while submitted the updated offer document to it.
The SMARTs are expected to conduct investors awareness programmes on behalf of the regulator under the aegis of Sebi Investor Protection and Education Fund (Sebi IPEF).
Sebi had put a cap on the bearish bets that foreign investors, mutual funds and proprietary desks could take on index derivative contracts without owning the underlying shares.
SMARTs are expected to conduct Investor Awareness Programs (IAP) for existing and prospective investors in the securities markets, the Securities and Exchange Board of India (Sebi) said in a statement.
The company had in May announced plans to delist Vedanta Ltd from the Indian stock exchanges by buying out non-promoter shareholding.
The markets regulator also prescribed that the minimum amount of funds to be accepted by portfolio managers operating in IFSC should be $70,000.
Last year, the regulator’s adjudication officer had imposed Rs 25 lakh each against the three credit rating agencies. However, Sebi later decided to review the adjudication officer’s order.
The regulator, in December 2019, had imposed a fine of Rs 25 lakh each ICRA and CARE Ratings in the matter saying the default by IL&FS occurred due to "lethargic indifference and needless procrastination and laxity" of these rating agencies.
The group is expected to start the process of setting up a sponsor company for the InvIT under its subsidiary IL&FS Transportation Networks Limited (ITNL) by the end of this month.
Sebi said that in order to enable the risk management framework to handle such a scenario of ’near zero’ and negative prices, it constituted a Task Force of CCs and market participants to review the risk management framework.
Stating that a corporation must provide total protection to whistleblowers against vendetta by the bosses, Murthy said an important duty of a board is protecting and enhancing the reputation of the company and discharging its fiduciary responsibilities.
Sebi has asked fund houses to comply with the new norms by January 31, 2021. The rush to add small- and mid-cap stocks to multi-cap portfolios could result in a run-up in share prices.
Accordingly, the regulator in July invited Expression of Interest (EoI) from solution providers for "upgrade and revamp of IT network, IP telephony and video conferencing set-up of Sebi".
"In view of the impact of the COVID-19 pandemic, it has been decided to extend the timelines for seeking public comments to October 18, 2020," the Securities and Exchange Board of India (Sebi) said in a statement.
The regulator found that Chawla was giving trading tips, stock specific recommendations, among others, to investors and general public by charging fees from them. Through such services, he collected over Rs 1.25 crore.
A segregated portfolio can be created in a mutual fund scheme by AMC in case the securities held by them are downgraded below investment grade and subsequent downgrades in credit rating.
The order came after Sebi received several complaints and conducted an examination against the company to ascertain if Kalyani and Kalyani Developers India Ltd (KKDIL) had issued securities to investors in violation of the public issue requirements.
The market regulator said multicap funds will now invest minimum 75 per cent of total assets in equities with 25 per cent each in largecap, midcap and smallcap companies.
In a virtual AGM, showing and counting the hands of shareholders in favour of a resolution is impossible. Sebi rules anyway require listed companies with more than 1,000 investors to offer e-voting facilities.
The decision has been taken after receiving representations from market participants, Securities and Exchange Board of India (Sebi) said in a circular.
The case relates to raising money through the issuance of shares to more than 1,500 people between July-November 2008 without complying with the regulatory provisions applicable for a public issue.
Sebi noted that the company has filed various false and concocted documents before it to persist with its contention that the issue of shares was a private placement only.
Sebi, in March 2019, had clarified that transfer deeds lodged before the deadline of April 1, 2019, and rejected or returned due to deficiency in the documents may be re-lodged with requisite documents.
However, such relaxations will not be applicable for entities from jurisdictions where lockdown has already been lifted, the Securities and Exchange Board of India (Sebi) said in a circular.
The Securities and Exchange Board of India (SEBI) on Friday said so-called multi-cap funds should invest a minimum 75% of their assets in stocks, but spooked industry by mandating equal allocation of 25% between large-, mid- and small-cap shares.
They also said brokers are not technically prepared to roll out the proposed framework and are seeking a month's extension to implement the same.
Brokers are pushing clients to pledge a portion of their shares. This is to ensure that whenever clients decide to do a quick trade, they are not found wanting for the mandatory initial margin.
The markets regulator said the timeline was extended after taking into consideration requests received from registered proxy advisors, and the prevailing business and market conditions due to Covid-19 pandemic.
On March 20, Sebi had imposed curbs on trading in futures and options to curtail frenzied activity that has contributed to a spike in volatility sparked by worries about the unchecked spread of coronavirus.
On March 20, the markets regulator has imposed curbs on trading in futures and options to curtail frenzied activity that has increased volatility amidst a near shut down of economic activity due to coronavirus.
During the investigation, Sebi found that the four entities made wrongful gains by trading in the scrip of IAL while in possession of UPSI pertaining to stock split.
"In today's virtual meeting, Sebi's declined to grant extension of further time in implementing margin pledge/repledge process. This came as a big surprise to Anmi and its 900 members. Anmi is holding consecutive meetings with all stakeholders and studying all options available to it in the matter," a spokesperson of Anmi said.
The government currently holds 87.40 per cent stake in IRCTC. To meet Sebi's public holding norm, it has to lower its stake in the company to 75 per cent.
The country’s only IFSC Gujarat International Finance Tec (GIFT) City is located between Ahmedabad and Gandhinagar
Prior to his promotion as ED, Shri Garg was Chief General Manager in SEBI and has handled several assignments since joining in January 1994.
The regulator on Wednesday proposed three options to increase public holding post the corporate insolvency resolution process.
Over 48% of the InvIT—Digital Fibre Infrastructure Trust (DFIT)—will be owned by various RIL entities, with the rest being held by high net worth individuals (HNIs), they said.
The fibre optic unit, earlier a part of RIL's telecom arm, Reliance Jio, has a debt of Rs 87,296.3 crore, including suppliers' credit.
Earlier, 50 per cent of the total post of executive directors were required to be filled in from internal candidates and the remaining 50 per cent were to be recruited by deputation/ contract and/or direct recruitment.
Before implementing the framework, Sebi wants to discuss the preparedness with the depositories (CDSL and NSDL), stock brokers association and clearing corporations.
Whole time member of the Sebi had earlier directed the bank to comply with the guidelines on or before December 31, 2020, the filing said.
Sebi observed that SBI, LIC and BoB are the sponsors of SBI Mutual Fund, LIC Mutual Fund and Baroda Mutual Fund, respectively, and they also hold more than 10 per cent stake each in these mutual funds.
Under the framework, exchanges can levy penalty on companies in case of non-redressal of investor complaints and ask depositories to freeze the shareholding of the promoter entities.
The funds have been mopped up to strengthen balance sheets, which might have been impacted due to the coronavirus pandemic, retire existing debt and to support working capital requirements, market experts believe.
The regulator said trustees should specify the scope of work of the said officer from time to time to support the role and responsibilities of the trustees.
The museum is intended to be a visual online organised collection of history of evolution, achievements and milestones in the Indian securities market over the decades in terms of market infrastructure.
They have also been restrained from accessing the securities market until further orders.
Shares of all broking firms have also managed to deliver positive returns to investors since April 1
The Appointments Committee of the Cabinet, headed by Prime Minister Narendra Modi, has approved extension of Tyagi’s term until February 28, 2022. His tenure would otherwise have ended at the end of this month.
Accordingly, in the interest of market development and investors, the depository has decided to reduce the charges substantially and levy a charge of Rs 5 for margin pledge or margin unpledge involving the end investor, he added.
The government had earlier this year granted a six-month extension to Tyagi, ahead of the expiry of his three-year tenure on March 1. Tyagi took charge from his predecessor, U K Sinha, on March 1, 2017.
Markets regulator Sebi will auction properties of Royal Twinkle Star Club and Citrus Check Inns on August 14 at a reserve price of over Rs 68 crore.
The regulator examined KYC (Know Your Customer) documents, common directorship, fund transfers and off-market transfers of shares and found that these entities were inter-connected with each other.
Sebi has barred Money Increase, Venture Revenue and two individuals from the capital markets for providing unauthorised investment tips and falsely promising assured returns to investors.
“Apart from rebalancing their portfolio in the Multi Cap schemes, they could inter-alia facilitate switch to other schemes by unitholders, merge their Multi Cap scheme with their Large Cap scheme or convert their Multi Cap scheme to another scheme category, for instance Large cum Mid Cap scheme.”
Markets regulator Sebi on Thursday said it has lined up as many as 18 properties of Asurre Agrowtech Ltd for an auction on August 30.
As per Sebi rules, a listed company is required to submit its quarterly, half year and annual financial results within 45 days or sixty days as applicable from the end of each quarter or half year or financial year.
Equity-oriented MFs have witnessed a cumulative net outflow of Rs 6,450 core in July and August while hybrid funds saw a withdrawal of Rs 12,121 crore.
The regulator has come out with host of measures to make it easier for corporates to raise funds as many companies are facing various challenges due to the pandemic.
Last week, the state- owned power generation company had approached Sebi seeking an exemption from one of its rules which bars a company from announcing buyback program pending any scheme of amalgamation.
On March 20, the regulator had come out with various measures, including revision of market wide position limit, to ensure orderly trading and settlement to contain high market volatility.
The new policy, aimed at helping local firms achieve better valuations, could be a shot in the arm for Indian unicorn start-ups valued at over $1 billion and Reliance’s digital unit which is eyeing a U.S. listing after raising over $20 billion from global names like KKR & Co.
Indian fund managers on Monday sought to assuage investor concerns that a regulatory change affecting portfolio structures of some equity funds which manage assets worth $20 billion will make such holdings riskier and destabilise the market.
“In order to enable the debenture trustees to take prompt action for enforcement of security in case of default in listed debt securities, a ‘Recovery Expense Fund’ (REF) shall be created which shall be used in the manner as decided in the meeting of the holders of debt securities,” Sebi said in a circular.
The decision has been taken in view of the prevailing situation due to the COVID-19 pandemic and partial lockdowns in various areas of the country.
The regulator found that 13 entities manipulated the price of JDL and of these entities, two booked gains by selling their shares at artificially high prices.
The applicants were called for a meeting with the internal committee (IC) of Sebi.
The investigation carried out by the regulator found that Ravishankar, who held 19,500 shares of the company, acquired through exercise of employee stock option plan (ESOP), sold 5,000 shares in September 2018 without seeking pre-clearance from the compliance officer.
While both IDBI and LIC held stake in the exchange, the shareholding threshold in NSE was breached when LIC acquired a 51 per cent controlling stake in IDBI Bank.
“Significant amount of margin pledges/repledges continue to be processed seamlessly since September 1, 2020. The new margin pledge process has now been fairly stabilized,” CDSL, NSDL, Indian Clearing Corp and NSE Clearing said in a joint statement.
The case relates to four schemes of Taurus AMC which had exposure in debt securities issued by Gautam Thapar-run paper maker Ballarpur Industries( BILT). The company defaulted on their payment obligation in February 2017.
"Launching the delisting bid to garner approx 134 crore shares was indeed a mammoth task. We saw enthusiastic participation by our shareholders that took us within striking distance of our goal, short by only 7 per cent," Vedanta Resources, the parent firm of Vedanta Ltd, said in a statement.
The markets regulator said the move will enhance the transparency and disclosure pertaining to debt schemes and investments by mutual funds in corporate bonds and commercial papers.
Extending the time period for compliance, the finance ministry amended the Securities Contracts (Regulation) Rules to allow companies three years to attain the minimum public shareholding, effective from July 31.
Under the new framework , stock brokers will have to collect margins from investors upfront for any purchase or sale of shares and failure to do so will attract penalties.