Sebi issues show-cause notice to NSDL over non-compliance related matters

The Securities and Exchange Board of India (Sebi) on Wednesday said it had introduced a new system under which foreign portfolio investors (FPIs) get sale proceeds faster. Earlier, many had reported delays in access beyond the standard T+1 settlement date due to the previous process adopted for obtaining tax clearance on their net sale proceeds for compliance with the regulations.
 

“Under the new system, in place since September 9, 2024, tax certificates for FPI sale trades executed on ‘T’ day are issued by tax consultants by 9:00 AM IST on ‘T+1’ day. This allows FPIs to access sale proceeds, either for repatriation or for reinvestment, on the same ‘T+1’ day,” said Sebi in a press release.

 

The market regulator estimates that the efficiency gains on account of the revised process would be around Rs 2,000 crore per annum. The Securities and Exchange Board of India (Sebi) has issued a show-cause notice to the National Securities Depository (NSDL) for alleged non-compliance with certain regulations.

The market regulator sent the notice to NSDL on October 11, related to findings from an inspection of the company conducted during the financial year 2023-24.

In a disclosure dated October 15, NSDL said it will file appropriate responses to the show-cause notice. However, it added that there is no impact on the financial, operational, or other activities of the company.

NSDL, India’s largest depository, is preparing for an initial public offering (IPO), where existing shareholders—National Stock Exchange (NSE), IDBI Bank, HDFC Bank, Union Bank of India, State Bank of India (SBI), and the Government of India (SUUTI)—will be reducing their holdings.

The share sale is also to comply with an earlier Sebi directive to limit single-entity ownership to 15 per cent.

Sebi issued final observations on NSDL’s IPO draft documents on September 30. The draft documents were filed in July 2023.

NSDL’s Draft Red Herring Prospectus (DRHP) was kept in abeyance between August and December last year, causing a delay in obtaining final approval.

At present, NSE holds a 24 per cent share in NSDL, while IDBI is the largest shareholder with a 26 per cent stake.

Danish Power launches Rs 198 crore  IPO, largest ever in SME segment

Danish Power’s Rs 198 crore initial public offering (IPO), the largest ever for the SME segment, will open on October 22. 

The company has priced its issue between Rs 360 and Rs 380 per share. The IPO is entirely a fresh fundraise. It plans to utilise the proceeds to fund working capital and capital expenditure requirements, and repay debt. Danish Power manufactures different types of transformers, including inverter duty transformers used in renewable power projects like solar power plants or wind farms.

FPIs to get faster sale proceeds, announces Sebi
 

The Securities and Exchange Board of India (Sebi) on Wednesday said it had introduced a new system under which foreign portfolio investors (FPIs) get sale proceeds faster. Earlier, many had reported delays in access beyond the standard T+1 settlement date due to the previous process adopted for obtaining tax clearance on their net sale proceeds for compliance with the regulations.