Sebi Update News Today

Asset Management Companies are required to put in place a structured institutional mechanism for identification and deterrence of potential market abuse. While Sebi will specify the broad framework of the institutional mechanism, industry body Association of Mutual Funds in India (Amfi) will have to detail on standards for such an institutional mechanism.

SEBI found offshore funds breaching Adani investment rules, seeking settlement with penalty. Regulator demanded group level disclosures. Adani denies acting in concert. No response to email requests.

Sebis proposal for a special call-auction mechanism aims to address liquidity issues and improve fair price discovery in Investment Companies and Investment Holding Companies with significant market price-book value gaps.

During an on-site inspection at Karvy Investors registered office in March last year, the regulator found inadequate infrastructure concerning office space, equipment, and manpower to effectively discharge the activities.

Current FPI rules do not provide for regularisation of FPI registration or liquidation of securities post expiry of their registration and the securities held by such FPI remain frozen in their demat accounts.

In its consultation paper, Sebi proposed categorising material changes notified by FPIs into two groups to set timelines for reporting such changes. Type I includes changes that require FPIs to seek fresh registration, or which affect any privileges or exemption available to such foreign investors and Type II includes all other material changes.

The regulators stated that the decision to extend the timeline for implementing LODR rules has been taken due to ongoing industry-standard finalisation and required amendments to market norms. The rule is aimed at strengthening the corporate governance of listed entities.

The Securities and Exchange Board of India has decided on a new system that will be in addition to the existing one with respect to OFS for companies employees. Under the new system, OFS to employees would be on T+1 day along with the retail category under a new category Employee. According to Sebi, for employee OFS, a certain number of shares should be reserved for the staff and the same should be mentioned in the OFS notice to the stock exchanges by the promoters.

A mule account is basically a trading account maintained with a stock broker or a dematerialized account or bank account linked with such trading account in the name of a person, where the account is effectively controlled by another person, whether or not the consideration for transactions in the account are paid by such other person.

Currently, voluntary blocking/freezing of demat accounts is already available for investors, and this facility is now proposed to be offered for their trading accounts also, Sebi said.