SECURITIES LAW
SEBI Mandates 2x Peak Load Capacity For Commodity Derivatives Exchanges, Clearing Corporations
The Securities and Exchange Board of India (SEBI) has recently directed stock exchanges and clearing corporations in the commodity derivatives segment to maintain installed system capacity at least twice their projected peak load. This effectively requires exchanges in the segment to prepare their systems for traffic levels well above expected peak volumes. SEBI noted that Clause 16.1.2 of Chapter 16 of its Master Circular for Commodity Derivatives Segment dated August 4, 2023, requires stock...
Unregistered Investment Advisory: SEBI Orders Divinecommodity.co's Madhav Tiwari To Refund ₹17.48 Lakh
The Securities and Exchange Board of India (SEBI) has recently directed Madhav Tiwari, proprietor of Divinecommodity.co, to refund money to investors after finding that he had carried out investment advisory activities without registration. SEBI had earlier, in September 2024, passed an order against Tiwari for providing investment advisory services without registration. It held that Tiwari had misrepresented himself as a SEBI-registered advisor, collected funds from investors, and...
SEBI Cuts Rs 67-Crore Penalty On GDR Subscriber In Winsome Textile Case To ₹20 Lakh
The Securities and Exchange Board of India (SEBI) has reduced the penalty on Arun Panchariya from Rs 67 crore to Rs 20 lakh in the Winsome Textile Industries GDR case, following a remand by the Securities Appellate TribunalSEBI's Quasi Judicial Authority, Biju S, passed the order after reconsidering the quantum of penalty in light of the findings and directions issued by the SAT. The regulator had, in December 2021, passed an order against Panchariya and 17 others in connection with the GDR...
SEBI Holds Unison Metals Shares Were Manipulated Via Telegram Tips, Bars 15 Entities From Market
The Securities and Exchange Board of India (SEBI) has recently passed a final order holding that the shares of Unison Metals Limited were manipulated through stock recommendation tips circulated on Telegram channels. The regulator barred 15 noticees from accessing the securities market for periods ranging from one to three years, ordered disgorgement of unlawful gains and imposed monetary penalties, while dropping proceedings against two noticees.Whole Time Member Amarjeet Singh held that the...
SAT Upholds SEBI Findings On Manipulation Of Stock Tips Aired Through CNBC Show 'Pandya Ka Funda'
The Securities Appellate Tribunal (SAT) has recently upheld the findings of the Securities and Exchange Board of India in a case involving the alleged manipulation of stock recommendations disseminated through the CNBC television show “Pandya Ka Funda”. The matter was heard by a coram comprising Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar. The appeal arose from a SEBI order passed against Alpesh Vasanji Furiya and his connected...
Budget Proposes Hike In Securities Transaction Tax On Futures And Options
The Union Budget 2026–27 on Sunday proposed an increase in Securities Transaction Tax (STT) on futures and options trades.Presenting the Budget, Finance Minister Nirmala Sitharaman announced higher STT rates for derivative transactions. “I propose to raise the STT on Futures to 0.05 per cent from the present 0.02 per cent,” she said. The Finance Minister also proposed a hike in STT on options. “STT on options premium and exercise of options are both proposed to be raised to 0.15 per cent from...
Budget 2026–27 Proposes Allowing Individuals Resident Outside India To Invest In Listed Shares Through PIS
The Union Budget 2026–27 on Sunday proposed allowing individuals resident outside India to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme, while also raising the permissible holding limits.Presenting the budget, Finance Minister Nirmala Sitharaman said, “Individual persons resident outside India will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme.” She announced an increase in...
Karnataka High Court Upholds Award Against Kotak Securities Over Unauthorised Share Sale
The Karnataka High Court has dismissed an appeal by Kotak Securities Limited and declined to interfere with an arbitral award holding the broker liable for unauthorised sale of shares and wrongful charging of interest. A bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha upheld the findings of the arbitral tribunal as well as the commercial court. The court found no merit in Kotak's attempt to reopen the dispute by advancing a new case at the appellate stage. “We do not consider it...
SEBI Censures Investment Adviser, Says Firm Cannot Escape Liability For Employee Misconduct
The Securities and Exchange Board of India (SEBI) has recently censured investment advisory firm Winway Research for multiple regulatory violations, holding that the firm failed to act as a fiduciary and could not escape responsibility for misconduct by its own employee. The order was passed by SEBI Whole Time Member Amarjeet Singh.In the order, the regulator made it clear that an adviser cannot distance itself from wrongdoing that occurs during the course of employment. “An employee of the...
SEBI Fines Research Guru Proprietor, Nephew ₹12 Lakh For Violating Investment Adviser Regulations
The Securities and Exchange Board of India (SEBI) has recently imposed a penalty of Rs 12 lakh on Research Guru proprietor Veena Sharma and her nephew Abhishek Sharma after finding multiple violations of the SEBI Act and investment adviser regulations. Of the total penalty, Rs 7 lakh was imposed on Veena Sharma, the proprietor of the SEBI-registered investment adviser Research Guru, while Rs 5 lakh was imposed on Abhishek Sharma. The penalties were imposed by SEBI adjudicating officer Sudeep...
Delhi High Court Upholds Forensic Audit Into CRB Mutual Fund Winding Up
The Delhi High Court has upheld directions for a forensic audit into the winding up of the Arihant Mangal Growth Scheme of CRB Mutual Fund. It has also allowed the Securities and Exchange Board of India to take steps to recover money paid to CRB group entities if violations are found. A Division Bench of Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar dismissed appeals filed by former members of a court-appointed special committee, former CRB Capital Markets director C.R....