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The Securities and Exchange Board of India (Sebi) has proposed changes to the rules governing angel funds, which could have mixed effects on investors. The consultation paper, released on November 13, targets angel networks that pool investments from ultra-high-net-worth individuals to support early-stage startups, potentially impacting their operations and investment strategies.
Sebi has raised alarms over systemic risks in SME IPOs, highlighting a staggering 245-fold increase in retail investor participation in FY24 compared to just 4-fold in FY22. Concerns include inflated revenues through circular transactions and the diversion of funds to shell companies controlled by promoters, prompting tighter regulatory oversight.
Sebi has issued a consultation paper proposing a review of SME IPO and disclosure norms. Currently, a minimum of 50 allottees is required for an SME public issue to be deemed successful, but the regulator suggests increasing this threshold to 200.
The Securities and Exchange Board of India (SEBI) clarified that research reports from research analysts (RAs) will not be classified as advertisements unless they promote the RA's products or services. This clarification addresses confusion regarding the advertising code's applicability to research reports.
Sebi chairperson Madhabi Puri Buch is scheduled to appear before the Public Accounts Committee (PAC) of Parliament today. This meeting comes in the wake of allegations from a Bharatiya Janata Party member, claiming that the committee's chairman, Congress MP KC Venugopal, is acting with political bias.
Mutual fund companies must now disclose the holdings of 'Designated Persons', trustees, and their immediate relatives on a quarterly basis, starting November 1. This disclosure is required within 10 days after each quarter ends. Additionally, any transactions exceeding Rs 15 lakh by designated employees and their relatives must be reported to the Compliance Officer within two working days.
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