Mr. Ravi Prakash further carefully evaluated the implications of the SCN recently issued by SEBI to Hindenburg and its associated companies by examining the basis of SEBI’s course of action both in case of national and international jurisdiction – 📌 In the Hindenburg case, SEBI has issued a Show-Cause Notice for alleged violations with regards to market manipulation stemming from the Hindenburg’s analysis report on the Adani Stocks, underscoring its commitment to market integrity. However, enforcing actions against a foreign entity involves complexities requiring cooperation with international regulators like the SEC. This creates a grey area dependent on cross-border collaboration. SEBI might pioneer new protocols for global regulatory enforcement and advocate for an international regulatory consortium to address globalized securities market challenges. 📜 SEBI's measures under the series of Section 11 may span across barring Hindenburg and its affiliates (directly and indirectly) from the Indian securities market for a definite period and, if unlawful gains are identified, directing disgorgement. Additionally, under Section 15HA, penalties can range from five lakh rupees to twenty-five crore rupees or three times the profits made, whichever is higher. Under Section 15HB, penalties can range from one lakh rupees to one crore rupees. This SCN demonstrates SEBI's commitment to maintaining market integrity and safeguarding investor interests. 🌐 In order to enhance extraterritorial capabilities, SEBI must explore bilateral agreements, legislative amendments, and leveraging technology for better surveillance and effective enforcement. SEBI aims to ensure a fair and transparent market for all stakeholders by proposing a collaborative approach through the International Organisation of Securities Commission (IOSCO). #SEBI #SecuritiesRegulation #GlobalEnforcement #InvestorProtection #MarketIntegrity #HindenburgResearch #InvestorProtection #CrossBorderCollaboration #IOSCO #TheHinduBusinessLine #CorporateProfessionals
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EXPLAINER ☀ Key Changes Affected by SEBI Amendments to the LODR (Listing Obligations and Disclosure Requirement). SEBI’s concern for the interest of investors can be understood from the SEBI’s response to the rapidly changing circumstances. To achieve this interest, SEBI regularly updates and tightens its laws. The current amendment regulations 2023 are the result of the recent circumstances within the listed space. It follows the significant happening (namely the Adani-Hindenburg and the Amazon-Future Group sagas) and an expanding need to certify market uniformity to safeguard the interests of all investors. It is likely that India will move toward higher standards of corporate governance over the coming years due to a combination of investors who have become more outspoken and are not afraid to object to shareholder resolutions and regulators who have actively been developing stewardship codes to facilitate such shareholder participation. ~Misha K. Read more: https://lnkd.in/dwyQrbFf
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On July 12, 2024, the Securities and Exchange Board of India (SEBI) granted recognition to BSE Limited as both the Research Analyst Administration and Supervisory Body (RAASB) and the Investment Adviser Administration and Supervisory Body (IAASB) for a five-year term starting July 25, 2024. This move aims to streamline the administration and supervision of Research Analysts and Investment Advisers. Key Highlights: - New Bye-laws & SOPs: BSE to formulate bye-laws, SOPs, and FAQs for smooth adoption of the RAASB and IAASB framework. - Administrative Fees: Applicants for registration/renewal as RA/IA to pay administrative fees to RAASB/IAASB. - Fee Neutrality: Total fees for application, registration, and renewal to remain fee neutral compared to previous structures. - Effective Date: Amendments effective from July 25, 2024. Stay updated with the latest regulatory changes to ensure compliance with Global Regulatory Insights! SEBI Circular - https://lnkd.in/gCNSSGUJ #SEBI #BSE #InvestmentAdvisers #ResearchAnalysts #RegulatoryUpdate #GRI #LegalIntelligence #Compliance
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🚨 *Prohibition of Insider Trading in India: Ensuring Market Integrity* 🚨 by Tejas Fadia Insider trading, the act of trading based on non-public, material information, undermines market fairness and investor trust. In India, SEBI (Securities and Exchange Board of India) regulates this through the SEBI (Prohibition of Insider Trading) Regulations, 2015. 🔑 *Key Points*: - *Definition of Insider*: Includes anyone with access to unpublished price-sensitive information (UPSI). - *UPSI*: Critical non-public information affecting stock prices. - *Trading Window*: Specific periods when insiders can trade; closed during sensitive times. - *Code of Conduct*: Companies must regulate, monitor, and report insider trades. - *Disclosure Requirements*: Insiders must disclose their trading activities. SEBI enforces these rules with strict penalties to maintain market integrity. Continuous updates to the framework help tackle new challenges, ensuring a transparent and fair market environment. #InsiderTrading #SEBI #MarketIntegrity #InvestorProtection #Finance #Regulation
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Securities Exchange Board of India ("SEBI") vide Circular SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/52 dated May 21, 2024 has formulated the industrial standards on verification of market rumours. 1️⃣ The said circular is being addressed to: (a) All listed entities; (b) All recognised Stock Exchanges; (c) The Associated Chambers of Commerce and Industry of India ("ASSOCHAM"); (d) Federation of Indian Chambers of Commerce and Industry (FICCI); (e) Confederation of Indian Industry (CII). 2️⃣ Applicability of the verification of the market rumours: To top 100 listed entities with effect from June 01, 2024 and to top 250 listed entities (i.e., next top 150) with effect from December 01, 2024 as specified by SEBI circular dated January 25, 2024. 3️⃣ In order to facilitate ease of doing business, the Industry Standards Forum (“ISF”) comprising of representatives from three industry associations, viz. ASSOCHAM, CII and FICCI, under the aegis of the Stock Exchanges, on a pilot basis, has formulated industry standards, in consultation with SEBI, for effective implementation of the requirement to verify market rumours under Regulation 30(11) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”). The industry associations which are part of ISF (ASSOCHAM, FICCI, and CII) and the stock exchanges shall publish the industry standards note on their websites. 4️⃣ The Stock Exchanges are advised to bring the contents of this circular to the notice of their listed entities and ensure its compliance. #SEBI #Circulars #NewStandards #RumoursVerification #Guidelines #ASSOCHAM #CII #FICCI #SEBILODR #StockExchanges #NSE #BSE
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📢 From SEBI Master Circular No. SEBI/HO/OIAE/IGRD/P/CIR/2022/0150 dated 07 November 2022: Strengthening Investor Protection with SCORES! 📊 SEBI's recent circular on SCORES (SEBI Complaints Redress System) marks a pivotal moment in our commitment to safeguarding investor interests in the Indian securities market. 🇮🇳 🔍 What is SCORES? SCORES is a revolutionary platform that streamlines the resolution of investor complaints, ensuring transparency and efficiency throughout the process. 🔄 The Process in a Nutshell: 1️⃣ Circular Issuance: SEBI provides comprehensive guidelines via circular. 2️⃣ Investor Complaint Submission: Investors report grievances related to securities transactions through SCORES. 3️⃣ Complaint Registration: Each grievance receives a unique registration number for easy tracking. 4️⃣ Complaint Routing: Complaints are directed to relevant intermediaries. 5️⃣ Intermediary Response: Intermediaries respond within set timelines. 6️⃣ Investigation and Resolution: Thorough investigation leads to resolution. 7️⃣ Investor Tracking: Real-time monitoring for investors. 8️⃣ SEBI Oversight: SEBI ensures compliance and timely resolution. 9️⃣ Escalation: Investors can escalate issues if unsatisfied. 🔟 Closure and Feedback: Complaints are closed upon resolution, with feedback encouraged. 🤝 Investor Protection Amplified: This circular strengthens SEBI's commitment to a fair and secure environment for investors, empowering them to voice concerns and holding intermediaries accountable. Investors, take note of SCORES—it's your ally in safeguarding investments and rights. Intermediaries, ensure you're well-versed in these processes for top-notch service. Together, let's fortify investor trust in the Indian securities market! 💼📈 #SEBI #InvestorProtection #SCORES #Investing #FinancialMarkets 🇮🇳 #EnterSlice
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On Monday (July 15), the Securities and Exchange Board of India (SEBI) imposed a fine of Rs. 25 lakh on Monetary Solutions for violating regulatory rules. This action follows an inspection conducted in September 2022, focusing on compliance with PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and IA (Investment Advisers) regulations. Key Findings: - Fake Testimonials: Monetary Solutions advertised fake testimonials and past performance on its website to lure investors by falsely demonstrating the accuracy of its tips. - Fraudulent Actions: SEBI's Adjudicating Officer, Barnali Mukherjee, noted that these actions were fraudulent, intending to deceive clients into taking advice from Monetary Solutions. - Regulatory Violations: Monetary Solutions failed to disclose the investor charter on its website and did not provide a link to lodge complaints on SCORES, further violating IA rules. SEBI's stringent action highlights its commitment to maintaining transparency and integrity in the capital markets. Stay informed with the latest regulatory updates from Global Regulatory Insights! #SEBI #MarketRegulation #InvestmentAdvisers #Compliance #FinancialRegulation #RegulatoryUpdate #GRI
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MMJC is thrilled and grateful to share our Founder Partner - Makarand Joshi's insightful comments on SEBI's newly introduced rumor verification framework have been featured in several prestigious media outlets, including Moneycontrol, Business Standard, Economic Times, Udayavani, Telegraph, News India Express, Business Today, and Times Now News! 🎉 He highlighted the significance of SEBI's move: "The regulator's new framework will exclude price volatility when determining the average market price for corporate actions, ensuring fairness for all investors. This measure will help prevent information leaks that could impact valuations during corporate actions. SEBI's initiative will strengthen the rumor verification framework, promoting a fair market and making it a preferred destination for investors worldwide." SEBI has also clarified that while calculating prices for various corporate actions—such as buybacks through book building and stock exchanges, qualified institutional placements, preferential allotments, and takeovers—the impact of material price movements due to confirmed rumors will be excluded. This means that any period of significant price movement caused by verified rumors will not be considered in the price calculation for these corporate actions. Parallelly the same can be read at: - https://lnkd.in/d__pqPMD A big thank you to the media platforms for capturing and amplifying this important perspective! 🙏 Kumudini Paranjape Deepti Jambigi-Joshi Aarti Ahuja Saurabh Agarwal Deepti Yavagal Kulkarni Pradnesh Kamat CS Omkar Dindorkar #SEBI #RumorVerification #MarketIntegrity #MediaCoverage #Gratitude #MMJC #MMJCCares
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SEBI has come up with various circular, details of which are mentioned below 1. SEBI vide Master Circular No. SEBI/LAD-NRO/GN/2023/155 dated 9th October, 2023 with respect to Circular for SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (Fifth Amendment)) REGULATIONS, 2023 2. Limited relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 3. Circular for Relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 4. Master Circular on Know Your Client (KYC) norms for the securities market . For more details, visit our website- www.mitconcredentia.com #SEBI #sebinews #market #marketnews #Compliance #investment #disputeresolution #Capitalmarketsregulator #Economy #SecuritiesandExchangeBoardofIndia #mitconcredentia #MITCON
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📣 SEBI's New "Fit and Proper" Criteria for Exchanges & Clearing Corporations! 🏦🔍 The Securities and Exchange Board of India (SEBI) has introduced fresh "Fit and Proper" criteria for exchanges and clearing corporations, aiming to enhance their governance and credibility. Here are the key takeaways: 📌 Stringent Standards: The new criteria set higher benchmarks for evaluating the "fit and proper" status of individuals associated with exchanges and clearing corporations. This ensures a robust and transparent selection process. 💼🔒 📌 Enhanced Governance: SEBI's move emphasizes the importance of strong governance practices. The updated criteria promote ethical conduct, accountability, and responsible decision-making, bolstering the integrity of the market. 💡🏛️ 📌 Risk Management: The criteria lay emphasis on the implementation of effective risk management systems. This proactive approach enhances the resilience of exchanges and clearing corporations, safeguarding them against potential crises. 📊🛡️ 📌 Alignment with International Practices: By aligning with global standards, India's exchanges and clearing corporations are set to gain recognition on the international stage. This could attract greater participation from global investors. 🌐🌍 📌 Investor Confidence: The stringent criteria contribute to building investor trust and confidence. Investors can be assured that exchanges and clearing corporations are held to high standards, promoting a stable and reliable market environment. 💰🤝 📌 Effective Oversight: SEBI's oversight role is reinforced through these criteria. By holding key individuals to a higher standard, SEBI strengthens its regulatory influence, ensuring the market's overall health. 🧐🔍 In conclusion, SEBI's new "Fit and Proper" criteria represent a significant stride towards elevating the governance, credibility, and risk management standards of exchanges and clearing corporations. This move resonates with SEBI's commitment to fostering a resilient and investor-friendly financial ecosystem. 📈👏 #SEBI #FinancialMarkets #governancematters
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Senior Associate at Corporate Professionals
1moCongrats Ravi