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Capital Markets
Amidst growing scale of the mutual fund industry, capital markets regulator Sebi has proposed to increase the role and accountability of the trustees in a bid to safeguard unitholders' interest. In addition, the regulator has suggested to enhance the accountability of board of asset management company (AMC). Also, Sebi has proposed a common platform for dissemination of public announcements by mutual funds. In order to have an independent review mechanism for the decisions of AMC from the perspective of the unitholders' interest across all products and services, Sebi has proposed to mandate that a "Unit Holder Protection Committee (UHPC) should be constituted by board of AMC". In its consultation paper, Sebi has suggested that trustees of mutual funds should focus on market abuse by AMC, its employees and mis-selling by the AMC to increase the asset base. Also, trustees should be responsible for fairness of fees and expenses charged by the AMC, compare its performance with peers a
Investment in the Indian capital markets through participatory notes slightly dropped to Rs 96,292 crore at the end of December 2022 from the preceding month on higher valuation of domestic markets. Before the decline, the investment through the route had been on an increasing trend since July because of a slump in prices of oil and other commodities and relative outperformance of Indian equity markets. Participatory notes (P-notes) are issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. According to Sebi data, the value of P-note investments in Indian markets --- equity, debt, and hybrid securities -- stood at Rs 96,292 crore at December-end, as compared to Rs 99,315 crore at the end of November. The investment level through the route was at Rs 97,784 crore at October-end, Rs 88,813 crore at September-end, Rs .
Capital markets regulator Sebi has amended rules which require vault managers and custodians to seek the watchdog's prior approval in case of change in control. The changes have been made to streamline the process of providing approval to the proposed change in control of the entities. In a notification, the Securities and Exchange Board of India (Sebi) said that the vault managers and Custodians will have to obtain prior approval of the Board in case of change in control in such a manner as specified by the regulator. To give this effect, Sebi has amended rules governing custodian and vault managers and the new rule has become effective from January 17. Vault manager is regulated as a Sebi intermediary for providing vaulting services meant for gold deposited to create electronic gold receipts (EGRs). The obligations of the vault manager include accepting deposits, storage and safekeeping of gold, creation as well as withdrawal of EGR, grievance redressal and periodic reconciliatio
Capital Markets regulator Sebi on Tuesday barred four entities from the securities markets for providing unauthorised investment advisory services without the regulator's authorisation. The regulator has restrained PNP Shareon Solutions, its proprietor Pradeep Haldar, PNP Solutions and its proprietor Prakash Haldar from securities markets for six months. PNP Shareon Solutions, PNP Solutions, Pradeep and Prakash Haldar are collectively referred to as noticees. The present proceedings emanate from a show cause notice issued to noticees by the regulator in August 2021. In its final order, Sebi found that noticees were engaged in providing investment advisory services without obtaining a certificate from Sebi as an investment adviser, thereby violating IA (Investment Advisers) rules. The total amount of money collected by the noticees is Rs 60.49 lakh from September 2017 to June 2020. Sebi has directed the noticees to refund jointly and severally within three months, the money receiv
Capital markets regulator Sebi on Thursday imposed penalties totalling Rs 45 lakh on two individuals for indulging in insider trading in the shares of Deepak Fertilizers and Petrochemicals Ltd. The regulator has slapped a fine of Rs 25 lakh on Naresh Ramniklal Mehta and Rs 20 lakh on his wife Pallavi Naresh Mehta, and also directed them to pay the fine within 45 days, according to an order. Sebi noted that Naresh is a director of Nishant Infin, which provided business services to Deepak Fertilizers and its subsidiaries. Also, Naresh is a cousin of Sailesh Mehta, who is the Managing Director of Deepak Fertilizers. Therefore, Naresh is reasonably expected to have access to information pertaining to Deepak Fertilizers, it said. As per the order, the Mehta couple traded in the scrip of Deepak Fertilizers while in possession of Unpublished Price Sensitive Information (UPSI) pertaining to the financial results of the company for the quarter ended June 30, 2020. "The noticees (Mehtas) ha
Capital markets regulator Sebi on Wednesday introduced the mechanism of net settlement of cash and Futures & Options (F&O) segment upon expiry of stock derivatives. The move is aimed at providing better alignment of cash and derivatives segment, mitigation of price risk in certain cases and netting efficiencies for market participants, the Securities and Exchange Board of India (Sebi) said in a circular. Under the mechanism, the obligations arising out of cash segment settlement and physical settlement of F&O segments, upon expiry of stock derivatives, would be settled on a net basis as against the current approach of settling such obligations separately. The benefit of netting (merged settlements) would be available to investors who trade and clear through the same TM-CM (trading member-clearing member) combination in cash and F&O segment. However, investors whose TM clears trades through different CM/Clearing Corporation (CC) will not be able to avail the benefit of .