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,...

Paytm Receives SEBI Warning Over Unapproved Transactions With Paytm Payments Bank

One 97 Communications, the parent company of Paytm, has received an administrative warning from the Securities and Exchange Board of India (SEBI) regarding certain transactions conducted during the financial year 2021-22. SEBI's letter stated that Paytm engaged in related party transactions (RPTs) with Paytm Payments Bank Limited (PPBL) without obtaining the necessary approvals from its audit committee or shareholders. The transactions in question amounted to ₹324 crore and ₹36 crore....

SEBI Fines Berkeley Securities Ltd Rs. 9 Lakh For Regulatory Violations

The Securities and Exchange Board of India (SEBI) has levied a fine of Rs. 9 lakh on Berkeley Securities Ltd, a SEBI-registered stock broker, for multiple infractions of regulatory norms.Berkeley Securities was found to have misused credit balance client funds on several occasions. This misuse involved utilizing funds meant for credit balance clients to meet obligations of debit balance clients or for the firm's internal purposes. The amounts misused ranged significantly, from Rs. 1.97 lakh to...

SEBI Introduces New Guidelines To Enhance Credit Rating Agency Operations

The Securities and Exchange Board of India (SEBI) has released a new set of guidelines designed to streamline operations and enhance business ease for Credit Rating Agencies (CRAs). These new regulations, set to take effect from August 1, 2024. One of the changes introduced by SEBI is the establishment of specific timelines for various actions taken by CRAs. Previously, timelines were only specified for the initial rating reporting. The new guidelines now extend these timelines to...

SEBI Releases Master Circular On Surveillance of Securities Market

The Securities and Exchange Board of India (SEBI) has recently issued Master Circular on the Surveillance of the Securities Market. Under the new guidelines, SEBI mandates that trading in certain securities, including those affected by corporate actions such as mergers, demergers, and capital reductions, must initially occur in the Trade for Trade (TFT) segment. Trade for Trade segment refers to a trading mechanism where transactions are settled on a trade-to-trade basis. This means...

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SEBI Seeks Public Input On Amendments To REITs And InvITs Master Circulars

The Securities and Exchange Board of India (SEBI) has initiated a public consultation on proposed amendments to the master circulars governing Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). In a recent consultation paper, SEBI highlighted that the proposed changes respond to requests from market participants for clearer guidelines on the nomination process for unitholder nominee directors. Currently, under existing norms, unitholders with a...