Page 2 - Securities Market

Sebi bans individual from securities mkt for flouting regulatory norms

Capital markets regulator Sebi has barred an individual from the securities markets for a period of five years as well as slapped a fine of Rs 30 lakh for flouting regulatory norms. Besides, the regulator restrained Mohit Manghnani (proprietor of Wealthit Global) from associating himself as a director or key managerial personnel with any listed public company or any Sebi-registered intermediary for a period of five years. Sebi also directed Manghnani to resolve all complaints received through the regulator's SCORES portal within a period of three months. The order came after the markets watchdog had passed an ex parte order against Manghnani and the latter approached the Securities Appellate Tribunal (SAT), which remanded the matter back to Sebi and directed the regulator to pass a fresh order. In its order passed on Friday, the regulator found that the noticee (Manghnani) did not cooperate with Sebi during the inspection and deceived its clients by not disclosing the information a

Sebi refuses to stay securities market ban on Eros International Media

Sebi on Friday refused to lift the securities market ban imposed on Eros International Media Ltd and four others in an alleged fund diversion case. Further, an investigation by Sebi will be completed in six months in the matter, according to the order. Apart from Eros International, the ban from dealing in the securities market will continue on its Managing Director Sunil Arjan Lulla, Chief Executive Officer Pradeep Kumar Dwivedi and the two promoter entities -- Eros Worldwide FZ LLC and Eros Digital Private Ltd. Sebi, in an interim order in June, had prohibited these five entities from the securities markets in a case pertaining to the possible diversion of funds based on prima facie findings, and now, it has confirmed the ban against them. In its confirmatory order passed on Friday, Sebi said that "no cogent reasoning has been furnished by the noticees (the five entities) about the prima facie findings in the interim order, including the allegations of siphoning off funds to ...

Gross market borrowing for H2 to be Rs 6.55 trn, 50-yr bond to be issued

The government on Tuesday said it will borrow Rs 6.55 lakh crore in the second half of 2023-24 through dated securities, including Rs 20,000 crore through issuance of Sovereign Green Bonds (SGrBs). The government meets its fiscal deficit mainly through market borrowings. The government had projected gross market borrowing of Rs 15.43 lakh crore for 2023-24. "...the Government of India has decided to borrow the balance amount of Rs 6.55 lakh crore (42.45 per cent of Rs 15.43 lakh crore) in the second half of the fiscal year 2023-24 through dated securities, including Rs 20,000 crore through issuance of Sovereign Green Bonds (SGrBs)," the finance ministry said in a statement. "Responding to market demand for longer duration securities, 50-year security will be issued for the first time," it added. The gross market borrowing of Rs 6.55 lakh crore will be completed through 20 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 14, 30, 40 and 50-year securities. The

Sebi board clears various proposals, discusses tech in securities market

Markets regulator Sebi on Thursday decided to provide flexibility to large corporates in raising funds through issuance of debt securities for incremental financing needs. The decision was taken at the board meeting of the Securities and Exchange Board of India (Sebi) held here on Thursday. In a release, Sebi said its board also discussed various trends in the securities markets, including technology trends. Besides, the board has approved streamlining the framework for credit of unclaimed amounts of investors in listed entities to the Investor Protection and Education Fund (IPEF) and process of refund from the IPEF. This will be applicable for listed entities other than companies, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The regulator has also decided to extend the timeline for compliance with enhanced qualification and experience requirements for Investment Advisers (IAs).

Sebi bars Eros Group entities, MD from securities mkt over irregularities

The SEBI has barred Eros International Media Ltd, Eros Worldwide and Eros Digital from the securities market until further orders

Sebi revokes securities market ban on 6 entities in Poonawalla Fincorp case

Markets regulator Sebi on Thursday revoked a securities market ban imposed on six entities in a case of alleged insider trading in the shares of Poonawalla Fincorp Ltd, earlier known as Magma Fincorp Ltd. The six entities are Saumil Shah, Surabhi Kishore Shah, Amit Agrawal, Murlidhar Bajaranglal Agrawal, Rakesh Rajendra Bhojgadhiya and Rakesh Rajendra Bhojgadhiya HUF. The regulator revoked the ban following the settlement of cases by the entities. The six entities had filed the settlement applications under the provisions of Sebi (Settlement proceedings) rules in respect of the alleged violation of norms, according to a Sebi order. The settlement terms proposed by the noticees were accepted and approved by Sebi and subsequently, settlement orders were passed in respect of the proceedings initiated against the noticees vide the show cause notice. Sebi had passed an ex-parte ad-interim order in September 2021, against certain entities, including the noticees, for alleged violation o

Sebi bars entities from securities market over stock manipulation

Sebi levied a penalty of about 1.26 billion rupees towards wrongful gains made from alleged market manipulation of small-cap companies through bulk messages

Sebi revokes securities market ban on 8 former promoter entities of DHFL

Sebi on Friday revoked the securities market ban imposed on eight former promoter entities of Dewan Housing Finance Ltd (DHFL) in a case pertaining to alleged fraudulent financial transactions. Also, the regulator said the investigation in the matter had been completed and thereafter it initiated quasi-judicial proceedings against Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Kumar Wadhawan and Sarang Wadhawan who were the other four former promoters of DHFL (now known as Piramal Finance). The eight former promoter entities are -- Aruna Wadhawan, Malti Wadhawan, Anu Wadhawan, Pooja Wadhawan, Wadhawan Holdings Pvt Ltd, Wadhawan Consolidated Holdings Pvt Ltd, Wadhawan Retail Venture Pvt Ltd and Wadhawan Global Capital Ltd (formerly known as Wadhawan Housing Pvt Ltd). The entities are collectively referred to as noticees. In its fresh order, Sebi's Whole Time Member Ashwani Bhatia said, "I note that the investigation in the matter has now been completed, and quasi-judicial proceedings are

Manipulation via Youtube: Sebi penalises Arshad Warsi, wife, 29 others

Sebi noted that Arshad Warsi has made a profit of Rs 29.43 lakh and his wife has earned a profit of Rs 37.56 lakh

Sebi bans 2 individuals from securities markets, fines for insider trading

Capital markets regulator Sebi has barred two individuals from securities markets for one year and levied penalties totalling Rs 25 lakh on them for indulging in insider trading in the shares of Aptech Ltd. In addition, Sebi directed two individuals -- Lashit Lallubhai Sanghvi and his wife Neha Sanghvi -- to disgorge notional profits totalling Rs 99.72 lakh along with interest at the rate of 9 per cent per annum from September 2016 till the date of actual payment. Lashit, Late Rakesh Jhunjhunwala and others co-founded Alchemy Capital Management, an investment management firm, and Jhunjhunwala was the chairman/ promoter of Aptech. Besides, the regulator restrained Lashit and Neha from securities markets for one year and also barred them from dealing in the securities of Aptech for two years. The present proceeding emanated from a show cause notice issued in October 2020 against nine individuals, including Late Rakesh Jhunjhunwala, Lashit Sanghvi and Neha Sanghvi, following an ...

Sebi bans Anugrah Stock, 5 others from securities market for up to 7 years

Sebi has barred Anugrah Stock & Broking and five other entities from the securities market for up to seven years in a case pertaining to providing unregulated portfolio management services (PMS). The others banned by the regulator are the brokerage house's directors -- Paresh Mulji Kariya and Sadhana Paresh Kariya -- Teji Mandi Analytics, its director Anil Gopal Gandhi and Om Sri Sai Investments, an associate entity of Anugrah Stock, as per its order. In addition, Sebi has levied a penalty totalling Rs 8 crore on Anugrah Stock, its directors and the associate entity and the fine needs to be paid within 45 days. These four entities were engaged in providing Derivative Advisor Services (DAS) which was in the nature of portfolio management services (PMS) while promising assured returns to the prospective clients. These activities were being carried out without seeking requisite registration under the PMS rules, Sebi said in its 60-page order on Tuesday. While indulging in such ...

Sebi bans Capital Worth, its partners from securities market for 3 years

Sebi has banned Capital Worth Research House and its partners from the securities market for a period of three years for providing unauthorised investment advisory services. Besides, they have been directed to refund more than Rs 1.54 crore to clients within three months. The debarment of the entity and its partners will continue till the expiry of three years from the date of completion of the refund to investors, according to an order passed on Wednesday. Capital Worth is a partnership firm and its partners are Ankit Shrivastav, Mohammed Aamir Shaikh, Shahid Rangrej and Sameer Memon. Sebi found that Capital Worth by engaging in the activities and holding itself out as an 'investment adviser', without having a valid certificate of registration violated Investment Adviser (IA) rules. The regulator also noted that the partners of Capital Worth are fully responsible for the contravention committed by the firm. More than Rs 1.54 crore was credited in the account of Capital Worth bet

Sebi bans 14 entities from securities market for 4 years period

Regulator Sebi on Monday barred 14 entities from the securities market for four years and imposed a penalty totalling Rs 70 lakh on them in a case pertaining to front-running by some former dealers of Reliance Securities Ltd and their connected entities. They have been directed to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in its order. In addition, they have been asked to disgorge Rs 4.23 crore of unlawful gains made by them, along with an interest of 12 per cent. In its order, Sebi found that entities with the help and cooperation of each other/ by being in nexus with each other, in a pre-determined manner were successful in front-running the impending orders of Tata Absolute Return Fund, a scheme of Tata AIF (Big Client). Tata AIF is a Sebi-registered alternative investment fund. Pursuant to the nexus, they have front-run the orders of the Big Client on multiple occasions during the investigation period and have made considerable wrongful

Sebi bans 24 entities from for three years in Sulabh Engineers matter

Sebi on Friday barred 24 entities from the securities markets for three years for indulging in the manipulation of the stock price of Sulabh Engineers and Services Ltd. The order will come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said in its order. The order came after the Securities and Exchange Board of India (Sebi) conducted an investigation in the scrip of Sulabh Engineers to ascertain whether there were any violations of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms by 150 entities in the company's stock during the period December 2011 to January 2015. Following this, Sebi in its order in September 2020, concluded that 102 entities had violated PFUTP rules and restrained them from accessing the securities market. It also disposed of the show-cause notice against 47 other entities. In its order, Sebi noted that the company had come out with two preferential allotments during March 2011 and March 2012. Thereafter,

Sebi bans entities from market in unauthorised investment advisory case

Sebi on Wednesday barred Safe Trader and its proprietor Rajnandani Jalkhediya from the securities markets for providing unauthorised investment advisory services and also imposed a penalty of Rs 2 lakh on them. In addition, they have been asked to refund Rs 39.64 lakh collected from the clients as fees in respect of their unregistered investment advisory activities. In its order, Sebi found that the entities were providing investment advisory services without obtaining a registration certificate from the regulator, which was in violation of the provisions of Investment Advisers (IA) rules. The order revealed that over Rs 39 lakh were credited in the accounts of the entities between August 2020 and July 2021. "The noticees (Safe Trader and its proprietor) without holding a certificate of registration as investment adviser have knowingly disseminated false information/made misleading statements and held themselves out as investment adviser on their website. Thus, I find that the ...

Sebi bans 3 entities from securities market for insider trading activities

Sebi has slapped penalties totalling Rs 15 lakh on three entities and also barred them from the securities markets for one year for flouting insider trading rules with respect to the shares of VSL

Sebi bans CFAS, its partners from mkts for 3 yrs for unauthorised services

Sebi on Monday barred Capproin Financial Advisory Services (CFAS) and its partners from the securities markets for three years for providing investment advisory services without the market regulator's authorisation. Capproin Financial Advisory Services is a partnership firm and its partners -- Sourabh Rai and Jasmeet Kaur Bagga. The order came after Sebi received complaints through the market watchdog's SCORES (SEBI Complaints Redress System portal) platform against CFAS and its partners. Thereafter, the matter was examined by the regulator to ascertain whether there had been any violation of the provisions of IA (Investment Advisers) norms. Further, a show cause notice was issued to CFAS and its partners in March 2020. In its order, the regulator found that CFAS and Rai were never registered with Sebi in any capacity as an intermediary. However, Bagga was registered with the regulator in her capacity as proprietor of Research Infotech. According to Sebi, CFAS, Rai and Bagga were

Sebi moots measures to strengthen investor grievance redress mechanism

Capital markets regulator Sebi on Monday proposed ways to strengthen the existing complaint redressal process in the securities market by making use of online dispute resolution mechanisms. In its consultation paper, the regulator has suggested measures to deepen the existing Market Infrastructure Institution or MII-administered mediation and arbitration mechanism by making these processes more accessible and effective. MIIs are stock and commodities exchanges and depositories. Further, Sebi said these processes should be conducted online on an end-to-end basis using the capacity, technology, and other assistance of online dispute resolution institutions and proposed to modify the existing processes for the benefit of the investor. The proposed modifications in the existing MII-administered mediation and arbitration mechanism include re-labelling the IGRC (Investor Grievance Redressal Committee) process, providing for a sole mediator or arbitrator irrespective of the amount of the

Sebi bars AIFs from raising capital from non-compliant foreign investors

Foreign investor must be is a resident of the country whose market regulator is a signatory to either IOSCO multilateral MoU or has signed bilateral MoU with Sebi

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