Page 11 - Sebi

Sebi issues framework on ties between intermediaries, unauthorised advisors

Markets regulator Sebi on Tuesday came out with a framework on associations between market intermediaries and unauthorised financial advisors, especially with regard to specified digital platforms. This came after Sebi in August amended rules aimed at regulating associations between intermediaries, like stock exchanges, clearing corporations and depositories, and entities providing financial advice or making performance claims. The rule restrains intermediaries, their agents, or associated persons from having direct or indirect ties with any entity that provides investment advice or recommendations without being registered or permitted by Sebi or makes performance or return-related claims unless specifically authorised by the regulator to do so. However, if these interactions occur through specified digital platforms, they will not be subject to these restrictions. In its circular on Tuesday, Sebi said the framework allows associations through "specified digital platforms", which t

SMEs' operating cash flow fell 69% in FY24; sales and profits outperformed

Amid increased scrutiny of price action in the SME segment by regulators and investors alike, a looks at their fundamentals in a three-part series. Part-1 examines sharp decline in operating cash flow

Sebi directs regulated entities to end ties with unregistered advisors

Issues draft circular for recognising digital platforms for associations with registered entities

Sebi asks registered entities to end contracts with unregistered advisors

Markets regulator Sebi on Tuesday provided three months to registered entities and their agents to terminate their existing contracts with unregistered financial advisors. This is part of Sebi's move to curb unauthorized financial advice and performance claims in the securities market. This came after Sebi in August amended rules aimed at regulating associations between intermediaries (like stock exchanges, clearing corporations, and depositories) and entities providing financial advice or making performance claims. The rule restrains intermediaries, their agents, or associated persons from having direct or indirect ties with any entity that provides investment advice or recommendations without being registered or permitted by Sebi or makes performance or return-related claims unless specifically authorized by the regulator to do so. However, if these interactions occur through specified digital platforms, they will not be subject to these restrictions. In its circular on Tuesday,

Adani Energy gets Sebi notice for alleged misclassification of shareholding

Adani Energy Solutions also stated that there were no other pending regulatory proceedings against the company except for the two show-cause notices

Mutual fund units to fall under PIT regulations from November 1

The market regulator had issued the notification on the inclusion of MF units under PIT in November 2022, but it is being made effective now after consultation with industry bodies and members

Sebi notice to Adani Energy for alleged mis-categorisation of shareholding

Adani Energy Solutions Ltd (AESL), the power transmission arm of the Adani group, on Tuesday said it has received a notice from SEBI alleging wrongful categorisation of certain investors as public shareholders. Without giving details, the firm in notes to its second-quarter earnings statement said it will respond to regulatory and statutory authorities by providing relevant information/clarifications. The group's renewable energy firm, Adani Green Energy Ltd, which also declared its second quarter earnings, did not receive any new notice from SEBI. "During the current quarter, an SCN (show-cause notice) has been received alleging wrongful categorization of shareholding of certain entities as public shareholding and consequences therefrom," AESL said. "The company will respond to the regulatory and statutory authorities by providing information, responses, documents and/or clarifications, as applicable, in the due course of time." SEBI's listing rule provides for listed firms having

F&O cannot be a national pastime: Sebi whole-time member Ashwani Bhatia

Warns Sebi whole-time member Ashwani Bhatia as regulator takes steps to curb frenzy in derivatives segment

F&O trading can't be a pastime, investors need to be serious: Sebi member

India cannot afford to make futures and options trading into a 'national pastime', Sebi whole-time member Ashwani Bhatia said on Tuesday, urging investors to be more serious. Speaking at an event organized by Morningstar here, Bhatia rued that investors are protesting against the latest moves to curb activity in the F&O Segment initiated by Sebi. The markets watchdog's study has revealed that 93 per cent of the trades result in a loss for retail investors, and Bhatia said it is the institutional investors who are making money in the process. "F&O cannot be and should not be a national pastime which actually means that savings of retail participants move into the pockets of institutional hands," he said, asking investors to do "serious investing". He said India is home to more than half of the global derivative volumes, making it the largest base for such bets globally, and made it clear that this is a "crown we do not wish to wear". "... uneasy lies the head that wears a ...

Edelweiss Asset's former manager settles MF rule violation case with Sebi

A former fund manager of Edelweiss Asset Management has settled a case pertaining to alleged violations of mutual fund rules with markets regulator Sebi following a payment of Rs 19.5 lakh towards settlement charges. Abhishek Gupta allegedly failed to ensure that the funds of the schemes were invested to achieve the objectives of the scheme and by doing so he allegedly violated mutual fund rules. The order came after Gupta filed an application with Sebi proposing to settle the alleged violations "without admitting or denying of the findings of fact and conclusions of law" through a settlement order. "In view of the receipt of settlement amount by Sebi, the instant adjudication proceedings initiated against the noticee viz, Abhishek Gupta vide ShowCause Notice... dated January 4, 2024, are hereby disposed of," the regulator said in its settlement order. The Securities and Exchange Board of India (Sebi) received Rs 19.5 lakh from Gupta on October 17, towards the settlement amount.

Private firm's three directors convicted for not following Sebi rules

A court here has convicted a private company and its three directors in an over 23-year-old case under the SEBI Act and Collective Investment Scheme (CIS) regulations, saying they trapped innocent people by promising them unrealistic returns. Additional Sessions Judge Vandana Jain was hearing a 2001 case against Kisley Plantation Ltd, a company in East Patel Nagar, and its directors against whom SEBI had registered a case. According to the Securities and Exchange Board of India, the company was running a CIS and raised an aggregate amount of around Rs 2.43 crore from the general public, without registering with the regulatory body, while promising high returns and fiscal incentives. In its order dated October 8, the court said, "It has been proved beyond reasonable doubt that accused no.1 (Kisley Plantation) floated Collective Investment Schemes while there was a complete embargo under Section 12 (1B) of SEBI Act to launch any such scheme." The section deals with obtaining a mandat

Sebi clarifies on 3-in-1 accounts usage for online public issue application

Markets regulator Sebi on Friday clarified that investors can continue using 3-in-1 accounts to apply online for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitised debt instruments. This is in addition to the existing modes of application, Sebi said in a circular. A three-in-one trading account combines a savings account, a demat account, and a trading account into a single integrated solution. In this case, the clients would have their funds in their bank account, earning interest on the cash balances. The clarification came after Sebi received feedback that there is a need to explicitly specify the usage of 3-in-1 type accounts for making an application in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments. Last month, Sebi's board approved a proposal whereby, in addition to the current mode of trading, the qualified st

Exchanges to hold special trading session for holdcos on October 28

Sebi had issued the framework to address the gap at which these holdocs are traded and the intrinsic value of their holdings

NSDL settles depository violation rule case with Sebi; pays Rs 3.12 crore

The National Securities Depository Ltd (NSDL) on Thursday settled a case pertaining to alleged violation of depository rules with markets regulator Sebi after paying Rs 3.12 crore towards settlement amount. This came after NSDL proposed to settle the case involving alleged violations of rules specified under the Sebi (Depositories and Participants) Regulations, 2018 "without admitting or denying the findings of facts" through a settlement order. NSDL was accused of failing to address grievances from participants and beneficial owners within 30 days, as required by Regulation 7(g) and breaching clauses of the Code of Conduct under the same regulations, both before and after August 28, 2023. "In view of the acceptance of the settlement terms and the receipt of settlement amount...by Sebi, the instant adjudication proceedings initiated against applicant vide show cause notice (SCN) dated February 8, 2024, is disposed of," the settlement order noted. The Securities and Exchange Board o

India equity option traders hunt for new playgrounds as tighter rules loom

However, traders are not expected to have a smooth transition from options trading to other segments

BSE tumbles by over 5% after Jefferies downgrade stocks to 'underperform'

Many are hopeful that BSE may gain market share from the spillover trades into the continuing weekly products

MF licence aspirant list swells with new wave of AMCs ready to roll

New applications serve as launchpad for diversifying business and expanding capital market reach

Corporate bond funds: High credit quality, moderate duration risk

According to the Securities and Exchange Board of India (Sebi), corporate bond funds must allocate at least 80 per cent to corporate bonds rated AA-plus or higher

Sebi considers allowing Associations of Persons to open demat accounts

Markets regulator Sebi on Wednesday proposed allowing Associations of Persons (AOPs) to open demat accounts in their name to hold certain securities, excluding equity shares. The proposal if implemented would promote ease of doing business and encourage the shift from physical to electronic holdings of securities. In its consultation paper, Sebi has proposed amending its rules to allow AOPs to open demat accounts in their names. These accounts would enable AOPs to hold securities, excluding equity shares, directly. The AOP would need to provide its PAN details when opening the account and confirm that only permitted securities are held, ensuring the account is not used for equity shares. The Securities and Exchange Board of India (Sebi) has sought public comments on the proposal by November 5. The proposal came after Sebi received suggestions to allow partnership firms, AOPs, and unregistered trusts to open demat accounts in their own name, instead of only in the names of their ..

Sebi to auction Rose Valley's 27 properties worth Rs 63.26 cr on Nov 25

Capital markets regulator Sebi on Wednesday said it will auction 27 properties of Rose Valley group of companies on November 25 at a reserve price of Rs 63.26 crore in a bid to recover money raised by the firm from the public through illicit schemes. The properties to go under the hammer include flats, buildings, land parcels and hotels located in West Bengal and Bihar, the Securities and Exchange Board of India (Sebi) said in a notice. The e-auction will be conducted on November 25 between 11 am to 1 pm. The total reserve price of these properties is pegged at Rs 63.26 crore, it added. The markets regulator said it has engaged Quikr Realty to assist it in sale of the properties of Rose Valley while C1 India has been appointed as the e-auction service provider. A committee would oversee sale of the assets and the money will be utilised for repaying the investors. The committee was formed following an order passed by Calcutta High Court in May 2015. Going by the notice, bidders may