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Sebi Norms
Markets regulator Sebi has introduced a concise and standardised summary of offer documents in the form of a draft abridged prospectus, a move aimed at making IPO disclosures more accessible and investor-friendly. IPO-bound companies will now be required to submit this abridged prospectus alongside their detailed offer documents. The regulator said the document will present key information including the company's business model, financials, promoters, risks, and key performance indicators in a simplified and easy-to-understand format. "Draft abridged prospectus ... shall be submitted along with the updated draft red herring prospectus-I, and shall be hosted on the websites of the issuer, the Board, stock exchanges where specified securities are proposed to be listed and lead manager(s) associated with the issue," Sebi said in a notification dated March 16. The abridged prospectus will be made available on the websites of issuers, stock exchanges, and lead managers to ensure easier
Sebi has levied penalties totalling Rs 2.8 crore on 18 entities as well as barred them from securities markets for up to five years for manipulating the share prices of Retro Green Revolution Ltd (RGRL). Besides, the regulator has directed 15 of these entities to disgorge the total unlawful gains worth Rs 2.94 crore, along with 12 per cent interest per annum from December 31, 2021, till the date of payment. The amount is to be deposited in Sebi's Investor Protection and Education Fund within 45 days. In its 61-page order passed on Tuesday, the regulator found that the entities were part of a premeditated scheme to artificially jack up the price of an illiquid scrip of RGRL and lure gullible investors. Sebi observed that the scheme involved trading among connected entities to create artificial volumes in a thin stock, followed by circulating tips/ stock recommendations through a Telegram channel. The noticees no 1 to 6, including Sanjay Arunkumar Choksi, had indulged in creating a
Sebi chairman Tuhin Kanta Pandey said the regulator has no concerns over the futures segment of the derivatives market, but remains watchful of speculative activity in short-dated options. Pandey said the regulator's recent interventions are focused specifically on curbing excesses in short-tenor options, while preserving the crucial role of futures and derivatives in price discovery and liquidity. Responding to a question on the derivatives segment, Pandey said the issue should not be broadly labelled as one concerning F&O. "You should not be calling it F&O because futures we never had an issue with. There was an issue around short-dated options," he said in an interaction with PTI. He noted that Sebi has already introduced a series of regulatory measures targeting excesses in short-tenor options. Measures were rolled out in October 2024 and May 2025, with phased implementation in July, October and December. The regulator is now assessing the impact of these interventions ...
To boost ease of doing business, markets regulator Sebi on Friday proposed additional relaxations to reporting norms for stock brokers, including exempting certain demat accounts held by brokers who are also primary dealers from tagging requirements. Further, brokers that are banks or primary dealers will be required to report only those bank accounts that are used for stock broking activities, Sebi proposed. "All demat accounts maintained by stock brokers should be appropriately tagged. Further, this shall not be applicable for the demat account which are used exclusively for activities other than stock broking activities by stock brokers, which are also primary dealers. "Stock broker which is also bank or primary dealer, shall be required to report to the stock exchanges only those bank accounts that are used for their stock broking activities," Sebi said in its draft circular. Under the current rules, brokers are required to maintain properly named and tagged bank and demat ...
The Securities Markets Code (SMC) Bill draws a clear line on capital markets regulator Sebi's enforcement reach by imposing an eight-year statutory limit on inspections and investigations, a move aimed at preventing prolonged regulatory overhang on market participants. However, this eight-year limitation will not apply to cases that have a systemic impact on the securities market. Apart from setting a time bar, the Bill also introduced a time-bound enforcement framework. It mandates Sebi to complete investigations within 180 days, while simultaneously strengthening investor protection through the introduction of an Ombudsperson-led grievance redressal mechanism. The Bill, which was introduced in the Lok Sabha last week, requires Sebi to set aside 25 per cent of its annual surplus in a Reserve Fund for expenses, with the remaining surplus transferred to the Consolidated Fund of India. According to a person familiar with the matter, the eight-year limit would bring legal certainty an