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Mishtann Foods' shares were locked in a 20% lower circuit for the second consecutive day following a show cause notice from SEBI regarding the misappropriation of a Rs 100 crore fund. The regulator accused the company of inflating sales and purchases through fictitious transactions involving non-existent entities linked to its promoters. The stock has plummeted over 40% year-to-date, reflecting investor concerns over the allegations.
Concerns regarding corporate governance in the small-and-medium enterprises (SME) segment of the capital market have been highlighted by SEBI's Ashwani Bhatia. Speaking at the Corporate Governance Summit, he emphasized the importance of regulation amidst the segment's growth, which has seen market capitalisation reach Rs 2 lakh crore. Bhatia cautioned against prioritizing market capitalisation at the expense of ethical practices, stating, "The quest for market capitalisation should not end up as a race to the bottom."
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.
Generating alpha in investments is becoming increasingly challenging, necessitating patience and thorough research from investors. The mutual fund sector is witnessing a rise in interest, particularly in ESG investing, while the overall share of mutual funds in financial savings has grown significantly. Despite market volatility and credit risks, mutual funds remain a viable option for achieving financial goals with relatively lower risk.
The Securities and Exchange Board of India (Sebi) has banned First Overseas Capital from managing public issues due to multiple regulatory violations, including failing to meet minimum net worth requirements for six years and submitting false statements. The regulator emphasized that allowing a non-compliant entity to operate poses systemic risks to the securities market and could harm investor interests.
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