SECURITIES LAW
SEBI's Yellow Card: 'Warning Letters'
In India, the Securities and Exchange Board of India (“SEBI”) serves a dual role of being a watchdog as well as a guide in the arena of the securities market. To foster market discipline, SEBI has increasingly resorted to issuing warning letters, an ostensibly soft enforcement tool, which may or may not be followed by a show cause notice. In a way, think of SEBI as a referee in a football match: when SEBI issues a warning letter, it seems akin to the referee pulling out a yellow card—not a...
Lok Sabha MP Mahua Moitra Files Lokpal Complaint Against SEBI Chief Madhabi Puri Buch Over Alleged Adani Links
Mahua Moitra, Member of Parliament in Lok Sabha, has filed a complaint before the Lokpal against Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI) over allegations of misconduct and financial irregularities.The Trinamool Congress member has accused the SEBI head of improper conduct and entering into quid pro quo arrangements. "My LokPal complaint against Ms. Puri-Buch been filed electronically & in physical form. LokPal must within 30 days refer it to...
Hidden Hatchery: The Birth Of Unpublished Price Sensitive Information
In the kingdom of the securities market, information reigns supreme. It is capable of shaping perceptions, driving market movements, and influencing the pricing of securities. Information is the lifeblood of the securities market - its protection, timely and accurate dissemination is vital for the market's integrity. The dynamic realm of economic activity continuously gives rise to information regarding the health and endeavours of companies and businesses. Amongst this vast galaxy of...
SEBI Proposes Mandatory ASBA-Like Trading Facility For Qualified Stock Brokers Leveraging UPI Block Mechanism In Secondary Markets
The Securities and Exchange Board of India (SEBI) has proposed that all qualified stock brokers (QSBs) should be mandated to offer a trading facility similar to the Application Supported by Blocked Amount (ASBA) system currently used in the primary market. This facility would leverage the Unified Payments Interface (UPI) block mechanism which has been in use for retail investor applications in public issues since January 2019. The proposal is outlined in a consultation paper where SEBI...
SEBI Proposes Tripling Fees For Informal Guidance, Expanding Eligibility To Include More Market Entities
The Securities and Exchange Board of India (SEBI) has proposed amendments to the existing Informal Guidance (IG) Scheme, 2003. This scheme, originally introduced in June 2003 and amended in 2004 and 2023, allows registered entities to seek SEBI's guidance on specific transactions and interpretations of securities laws. The IG Scheme was introduced by SEBI to provide clarity to market participants on complex regulatory issues. Initially, it catered to a limited group, including listed...
SEBI Tightens Eligibility Criteria For Stocks In Derivatives Segment With Stricter Standards And New Product Success Framework
The Securities and Exchange Board of India (SEBI) has updated the eligibility criteria for the entry and exit of stocks in the derivatives segment. The revised criteria introduce stricter standards for stocks to be eligible for entry into the derivatives segment. These criteria are based on the stock's performance in the cash market over the preceding six months on a rolling basis. One of the changes in the eligibility criteria is the increase in the Median Quarter Sigma Order Size...
SEBI Cancels Registration Of 39 Stock Brokers, 7 Commodity Brokers, And 22 Depository Participants For Non-Compliance
The Securities and Exchange Board of India (SEBI) has cancelled the registration of 39 stock brokers, seven commodity brokers, and 22 depository participants. The cancellations were primarily driven by the fact that these entities were no longer actively participating as members of recognized stock exchanges or depositories. SEBI noted that the action was necessary to prevent these entities from misusing their registration status, which could potentially harm unsuspecting investors. ...
SEBI Bars Rana Sugars And Top Promoters For 2 Years, Imposes ₹63 Crore Fine For Fund Diversion And Fraudulent Activities
The Securities and Exchange Board of India (SEBI) has taken action against Rana Sugars Limited (RSL) and its key promoters and officials. This move comes after a detailed investigation into allegations of fund diversion and fraudulent activities within the company. SEBI's decision includes barring the company and its top management from participating in the securities markets for two years, along with imposing a hefty fine of ₹63 crore on the involved parties. Rana Sugars Limited, a...
CDSL Settles With SEBI For ₹1.3 Crore Over Alleged Regulatory Violations
The Central Depository Services (India) Limited (CDSL), one of India's prominent depositories, has resolved allegations of regulatory violations by paying a settlement amount of ₹1.3 crore to the Securities and Exchange Board of India (SEBI). This settlement stems from alleged non-compliance with specific directives issued by SEBI. SEBI initiated adjudication proceedings against CDSL under Section 15HB of the SEBI Act, 1992. The proceedings were based on alleged violations of multiple...