SECURITIES LAW
SEBI Imposes ₹5 Lakh Penalty On HSBC Asset Management For Inadequate Investment Decision Documentation
The Securities and Exchange Board of India (SEBI) has imposed a penalty of ₹5 lakh on HSBC Asset Management (India) Private Limited (HSBC AMC). This penalty was levied after an earlier order that exonerated HSBC AMC was found to be flawed and contrary to the interests of the securities market. The scrutiny began with the examination of HSBC AMC's investment decisions focusing on transactions involving three stocks: Hindustan Zinc, Sadbhav Engineering, and Vodafone Idea. The sale of...
SEBI Imposes Three-Year Ban On Vijay Mallya For Securities Market Manipulation
The Securities and Exchange Board of India (SEBI) has imposed a three-year ban on Vijay Mallya, a prominent businessman and former chairman of United Breweries Group. This decision bars Mallya from trading in the securities market and prohibits him from associating with any listed company, either directly or indirectly. This decision stems from Mallya's involvement in a scheme to manipulate the Indian securities market through overseas accounts. SEBI's investigation revealed that ...
Piramal Insider Trading: Piramal Capital Housing Finance Former Managing Director Settles With SEBI By Paying Rs 91 Lakh
The former managing director of Piramal Capital Housing Finance Ltd and his wife have settled with the Securities and Exchange Board of India (SEBI) for unlawful gains accrued through the misuse of unpublished price-sensitive information (UPSI) by key individuals and entities associated with the company. The terms included the payment of over Rs 91 lakh by Khushru Burjor Jijina, the former managing director of Piramal Capital Housing Finance Ltd, and Rs 45.5 lakh by his wife....
'Dishonest, Misleading': SEBI Rejects Defence And Mandates Disclosure, Shareholder Approval For Material Related Party Transactions
The Securities and Exchange Board of India (SEBI) has issued a final order concerning Linde India Limited (LIL) and its related party transactions (RPTs) with Praxair India Pvt Ltd (PIPL) and Linde South Asia Services Pvt Ltd (LSASPL). The decision follows exchange between SEBI and LIL which began after SEBI's interim order on April 29, 2024 that questioned the legitimacy of these transactions. The matter revolves around transactions entered into by LIL with PIPL and LSASPL. SEBI's...
SEBI Fines IFGL Rs. 4 Lakh For Regulatory Breaches And Deficient Investor Grievance System
The Securities and Exchange Board of India (SEBI) has fined Delhi-based Indian Finance Guaranty Ltd (IFGL) Rs. 4 lakh for failing to meet regulatory standards particularly in relation to its investor grievance system. SEBI conducted an inspection of IFGL which uncovered regulatory breaches. The primary issues identified included IFGL's engagement in fund-based activities and multiple deficiencies in its investor grievance redressal system. IFGL was found to have taken unsecured loans ...
SEBI Enables ESG And Credit Rating Activities In IFSC-GIFT City
To bolster the financial ecosystem at the International Financial Services Centre (IFSC) in Gujarat International Finance Tech-City (GIFT City), the Securities and Exchange Board of India (SEBI) has granted permission to credit rating agencies (CRAs) and ESG rating providers (ERPs) to operate under the jurisdiction of the International Financial Services Centres Authority (IFSCA). According to SEBI's latest circular, the inclusion of IFSCA in the list of financial sector regulators...
Illegal Financial Advisory: SEBI Officials Collects Proof From Deleted Website Archives, Imposes Penalty Of Rs. 6 Lakh
The Securities and Exchange Board of India (SEBI) imposed a penalty of Rs. 6 lakh on Shashikant Kumar, owner of SM Global Research, for operating an illegal investment advisory service without the requisite registration. Kumar tried to elude regulatory action by deleting the website from which he was running an illegal advisory. But, SEBI traced the website and its contents, which proved the existence of an illegal advisory, by going through its archives. The investigation into Kumar's...
Supreme Court Forms Committee Led By Justice Ravindra Bhat To Address Investor Claims On Sai Group Of Companies
To deal with investor claims pertaining to the Sai Group of Companies, which are accused of illegal mobilization of funds, the Supreme Court recently invoked its power under Article 142 of the Constitution to appoint a High Powered Sale Committee (HSPC), to be headed by its former judge Justice S Ravindra Bhatt. It also granted interim bail to two founder-Directors of the companies, taking into account their incarceration of over 8 years.The judgment was delivered by a bench of Justices Surya...
Electrosteel Castings Promoters Settle Insider Trading Allegations With SEBI For Rs 1.36 Crore
The promoters of Electrosteel Castings Limited (ECL) have settled allegations of insider trading with the Securities and Exchange Board of India (SEBI) by paying a total of Rs 1.36 crore. The investigation by SEBI covered trading activities by promoter group entities of ECL between May 17, 2020, and January 6, 2021. During this period, SEBI noted the trades made by Amit Kumar Rathi, Anjushree Rathi, and Saroj Rathi, who were alleged to have traded in ECL shares while in possession...
SEBI Proposes Amendments To Handle Securities Law Violations By Intermediaries Through Summary Proceedings
The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing amendments to the SEBI (Intermediaries) Regulations, 2008 which introduces provisions for summary proceedings to handle specific types of securities law violations by intermediaries. The introduction of summary proceedings addresses issues observed in the current regulatory framework. Presently, only brokers' matters are resolved through summary proceedings. However, SEBI has noted an increased...
SEBI Proposes New Asset Class To Bridge Investment Gaps
The Securities and Exchange Board of India (SEBI) has introduced a proposal for a new asset class designed to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS). Current investment options range from retail-oriented Mutual Fund schemes with low ticket sizes to Portfolio Management Services and Alternative Investment Funds (AIFs), which require higher minimum investments. Despite this range, there is a gap between MFs and PMS in terms of flexibility and...
SEBI Fines Monetary Solutions Rs 25 Lakh For Regulatory Breaches
The Securities and Exchange Board of India (SEBI) levied a fine of Rs 25 lakh on Monetary Solutions for various regulatory violations. Employees of Monetary Solutions During the inspection, it was observed that seven employees associated with the Monetary Solutions, who dealt with clients, did not possess the requisite qualifications and certification as mandated by SEBI. This non-compliance was in violation of Regulation 15(13) read with Regulation 7 of the IA Regulations, 2013,...