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SEBI has proposed that market price data used for investor education can be utilized with a lag of at least three months. This measure aims to regulate unregistered investment advisors who often claim to provide educational content while discussing stocks and trading calls. The consultation paper, issued on December 6, seeks feedback on how regulated entities can collaborate with these unregistered entities.
The Securities and Exchange Board of India (SEBI) has updated its investor charter to enhance confidentiality of investor information and ensure the right to exit services at fair terms from securities market products. The revised charter outlines investor rights and responsibilities, along with a strengthened grievance redressal mechanism through the launch of SCORES 2.0 and SMART Online Dispute Resolution (ODR).
SEBI has proposed a change in the handling of in-the-money (ITM) single-stock options, suggesting that instead of being auto-exercised into physical delivery on expiry, they will devolve into stock futures one day prior to expiry. This adjustment allows traders to close their resultant stock futures positions on the actual expiry day.
Fundraising through debt issues saw a significant decline of 40% month-on-month in October, according to the SEBI bulletin. The total amount raised dropped to ₹76,752 crore, with public issues contributing ₹670 crore and private placements at ₹76,082 crore. Additionally, fundraising through InvITs plummeted nearly 90%, falling to ₹694 crore from ₹6,666 crore in September.
A new liquidity window facility has been introduced for corporate bond investors, allowing issuers to buy back bonds from retail investors, functioning like a put option. This initiative aims to enhance bond liquidity and provide a crucial exit route for retail investors, with collective demand expected to increase its usage. Managed funds investing in bonds can also benefit from this facility.
The Securities and Exchange Board of India (SEBI) has proposed that market infrastructure institutions (MIIs) engage an independent external agency for the recruitment of key management personnel (KMPs) in technology, operations, and compliance. Additionally, SEBI should be consulted regarding the reappointment or termination of these KMPs, and a cooling-off period is suggested for KMPs and directors before they can join competing MIIs.
At the Corporate Governance Summit on November 12, SEBI's Whole-time Member Ashwani Bhatia described the relationship between regulators and businesses as one of "frenemies," marked by both cooperation and conflict. He emphasized that while regulators aim to support businesses, they will adapt regulatory frameworks to ensure investor protection as market dynamics evolve.
The Solicitor General of India has confirmed that the National Financial Reporting Authority (NFRA) holds the exclusive authority to issue Standards on Quality Management for auditing, as the Institute of Chartered Accountants of India (ICAI) lacks such powers under the ICAI Act of 1949. This opinion has received backing from key regulators, including the CAG, RBI, and SEBI, emphasizing NFRA's role as the statutory regulator in auditing and accounting.
The Securities and Exchange Board of India (SEBI) has banned three unregistered online bond platforms—altGraaf, Tap Invest, and Stable Investments—from selling securities due to significant risks posed to public investors. An interim order was issued following a routine investigation that revealed these platforms were advertising and selling unlisted non-convertible debentures (NCDs) to retail investors, prompting further scrutiny into their operations and potential collusion with issuers.
Proxy advisories have raised concerns about royalty payments to related parties, indicating that such payments do not correlate with higher profits or revenues in a SEBI study. The analysis of 233 listed companies over ten years revealed that royalty payments, intended for technology transfer or brand use, often exceed 20% of net profit without delivering expected growth.
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