Respect regulations

Source: Business Standard Relevance: Changes to minimum public shareholding norms and consequent impact Synopsis: The government’s move to exempt any public sector listed company from complying with the minimum public shareholding norm is undesirable and inappropriate. Background Exempting select PSUs from minimum free float norm reverses govt stance Issues with the latest move Blocked an… Continue reading Respect regulations

Exempting select PSUs from minimum free float norm reverses govt stance

Source: Indian Expres Relevance: Changes to minimum public shareholding norms and consequent impact Synopsis: Recently, the Department of Economic Affairs has amended the Securities Contract (Regulation) Rules, 1957 (SCRR). Background Through a recent notification in the government gazette, the Department of Economic Affairs has amended the Securities Contract (Regulation) Rules, 1957 (SCRR). The amendment states… Continue reading Exempting select PSUs from minimum free float norm reverses govt stance

Non-profit Organisations Can Directly List on Social Stock Exchanges: Sebi Panel

News: Sebi-constituted panel under the chairmanship of Ishaat Hussain has submitted its recommendations on social stock exchange(SSE). Facts: Key Recommendations: Direct listing of non-profit organisations(NGO) through the issuance of bonds and a range of funding mechanisms. Tax Sops: It has recommended exemptions from securities transaction tax (STT) and capital gains tax (CGT) to ensure that… Continue reading Non-profit Organisations Can Directly List on Social Stock Exchanges: Sebi Panel

Sebi puts in place guidelines for listed REIT, InvIT on rights issue

News:The Securities and Exchange Board of India(SEBI) has announced guidelines pertaining to rights issue of units by listed real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Facts: Key features of the guidelines: The issuer will have to disclose objects of the issue, related-party transactions, valuation, financial details, review of credit rating and the… Continue reading Sebi puts in place guidelines for listed REIT, InvIT on rights issue

SC stays SAT order holding that Sebi lacks power to bar auditors

News:The Supreme Court stayed an order of the Securities Appellate Tribunal (SAT) which had held that markets watchdog Sebi does not have the power to bar auditors. Facts: Background: The Securities and Exchange Board of India(SEBI) had filed an appeal in the Supreme Court against the SAT’s order.  The Securities Appellate Tribunal(SAT) in its order… Continue reading SC stays SAT order holding that Sebi lacks power to bar auditors

SEBI sets up panel to suggest norms for social stock exchanges

News:Securities and Exchange Board of India(SEBI) has constituted a working group on Social Stock Exchanges (SSE). Facts: In Budget 2019,Finance Minister had proposed a social stock exchange for social enterprises and voluntary organisations working for social welfare to help them raise capital through debt, equity and mutual fund. About the working group: The working group… Continue reading SEBI sets up panel to suggest norms for social stock exchanges

SEBI tightens norms for liquid funds

News:The Securities and Exchange Board of India (Sebi) has released a circular on risk management framework for liquid funds. Facts: About Liquid funds: Liquid funds belong to the debt category of mutual funds. They invest in very short-term market instruments like treasury bills, government securities among others. They are getting popular with retail investors due… Continue reading SEBI tightens norms for liquid funds

SEBI announces reward of Rs 1 crore to insider trading informants

Securities and Exchange Board of India(SEBI) has approved a detailed set of rules for the new ‘Informant Mechanism’ under its Prohibition of Insider Trading Regulations. However,these rules would only be available to individuals and corporates.But professionals like auditors will not be able to use this route as they are duty-bound to report any wrongdoing. Insider… Continue reading SEBI announces reward of Rs 1 crore to insider trading informants

SEBI should handle proxy firms’ disputes’

Securities and Exchange Board of India(SEBI) had set up a working group on issues related to proxy advisors in 2018.The group was headed by Sandeep Parekh. Proxy adviser is a person who provides advice to institutional investors or shareholder of a company in relation to exercise of their rights in the company including recommendations on… Continue reading SEBI should handle proxy firms’ disputes’

Centre rejects SEBI plea to amend provision for transferring reserves

The Finance Ministry has refused to accept the request from the Securities and Exchange Board of India(SEBI) to amend the provision that mandates transferring 75% of the market regulator’s surplus funds to the central government. SEBI had written to the government seeking a review of the Budget proposal that mandates transferring 75% of the market… Continue reading Centre rejects SEBI plea to amend provision for transferring reserves

SEBI opposes Centre’s proposal to transfer surplus money to CFI

Securities and Exchange Board of India(SEBI) has written to the government seeking a review of the Budget proposal that mandates transferring 75% of the market regulator’s surplus funds to the central government SEBI said that the proposal would result in compromising its autonomy and its ability to function effectively towards the progress and development of… Continue reading SEBI opposes Centre’s proposal to transfer surplus money to CFI

SEBI gets teeth to probe new-age cases

The Finance Bill,2019 has given the Securities and Exchange Board of India (SEBI) new powers to act against entities that tamper or destroy electronic databases or fail to furnish information. The bill has introduced section 15HAA in the SEBI Act.The section states that if a person tampers with information to obstruct or influence an investigation,destroys… Continue reading SEBI gets teeth to probe new-age cases

SEBI tightens norms for mutual fund investments

The Securities and Exchange Board of India(Sebi) has introduced more checks and balances for mutual funds(MFs) to secure investors and stem systemic risks. SEBI has said that mutual fund schemes can now invest only in listed debt or equity.The valuation of securities in debt funds will now be on mark-to-market basis instead of the earlier… Continue reading SEBI tightens norms for mutual fund investments

SEBI allows futures on commodity indices

The Securities and Exchange Board of India (SEBI) has permitted stock exchanges with commodity derivative segment to introduce futures on commodity indices. The stock exchanges willing to start trading in futures on commodity indices are required to take prior approval for launching such contracts. SEBI has also directed the stock exchanges to submit proposal with… Continue reading SEBI allows futures on commodity indices

SEBI directs rating agencies to disclose probability of default

The Securities and Exchange Board of India (Sebi) has prescribed guidelines to strengthen the disclosures made by credit rating agencies to enhance the rating standards. SEBI has asked credit rating agencies(CRAs) to start disclosing a probability of default(PD) benchmark for the companies rated by them. Probability of default(PD) is a financial term describing the likelihood… Continue reading SEBI directs rating agencies to disclose probability of default

SEBI mulls norms to reward whistle-blowers

Securities and Exchange Board of India (SEBI) has released a discussion paper for informant mechanism related to insider trading wherein whistleblowers could get monetary reward of up to Rs 1 crore. Insider trading is defined in the SEBI (Prohibition of Insider Trading) Regulations, 2015 to mean trading of securities while in possession of unpublished price… Continue reading SEBI mulls norms to reward whistle-blowers

SEBI, MCA sign pact for more data scrutiny

Ministry of Corporate Affairs(MCA) and the Securities and Exchange Board of India(SEBI) has signed a Memorandum of Understanding (MOU) for data exchange between the two regulatory organizations. The MoU comes in the backdrop of increasing need for surveillance in the context of Corporate Frauds affecting important sectors of the economy. The MoU will facilitate the… Continue reading SEBI, MCA sign pact for more data scrutiny

SEBI tightens disclosure norms for listed debt securities

Securities and Exchange Board of India (SEBI) has asked debenture trustees to enhance their disclosure for listed debt securities with a view to protecting the interests of investors. Debenture is an instrument of debt executed by the company acknowledging its obligation to repay the sum at a specified rate and also carrying an interest.It is… Continue reading SEBI tightens disclosure norms for listed debt securities

After RBI, Sebi & IRDAI launch initiatives to boost startups

Securities and Exchange Board of India(SEBI) and the Insurance Regulatory and Development Authority of India(IRDAI) has announced sandbox initiative to encourage startups in their segments by making data and systems available to them. A sandbox is an enabling infrastructure or interface which is made available to an outside innovator or fintech by a bank so… Continue reading After RBI, Sebi & IRDAI launch initiatives to boost startups

NSE fined ₹1,000 crore in co-location case

Securities and Exchange Board of India(SEBI) has barred National Stock Exchange(NSE) from raising money on securities markets for six months and has also fined NSE Rs 1000 crore under NSE co-location scam. Under the NSE co-location facility,trading members can place their servers in the exchange’s data centre,where they get faster access to the price feed,helping… Continue reading NSE fined ₹1,000 crore in co-location case

SAT settles SEBI-broker dispute over interest calculation

The Securities Appellate Tribunal (SAT) was recently forced to calculate simple interest in a matter between the SEBI and broker Prebon Yamane(India).It was calculated after they failed to arrive at a consensus on the manner and the amount on which simple interest had to be calculated. The Securities and Exchange Board of India (SEBI) is… Continue reading SAT settles SEBI-broker dispute over interest calculation

Mallya row: SEBI seeks changes to Companies Act

Capital markets regulator,Securities Exchange Board of India(SEBI) has requested the government to amend the Companies Act to ensure that a director declared by Sebi as a disqualified person should immediately vacate the position.This appeal was required due to defaulter businessman Vijay Mallya’s reluctance to vacate his position as a director. Under the Companies Act, the… Continue reading Mallya row: SEBI seeks changes to Companies Act