DEPUTY GENERAL MANAGER
INVESTMENT MANAGEMENT DEPARTMENT
SEBI/IMD/CIR No.2/122577/08
April 8, 2008
All Mutual Funds Registered with SEBI
Association of Mutual Funds in India (AMFI)
Dear Sirs,
Re: Overseas Investments by Mutual Funds
1. Please refer to clause 1 (a) of SEBI Circular SEBI/IMD/CIR No.7/104753/08
dated September 26, 2007 pertaining to overseas investments by mutual
funds.
2. In consultation with Govt. of India and RBI, it has now been decided to
enhance the aggregate ceiling for overseas investment to US$7 bn.
3. All other conditions specified in the above mentioned circular remain
unchanged.
4. These guidelines are issued in exercise of powers conferred under Section
11(1) of the Securities and Exchange Board of India Act, 1992 read with the
provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996.
Yours faithfully,
Ruchi Chojer
Wednesday, April 9, 2008
Changes in Clause 49 of the Listing Agreement - April 2008
SEBI/CFD/DIL/CG/1/2008/08/04
April 08, 2008
Corporate Governance in listed Companies – Clause 49 of the Listing Agreement
SEBI, vide circular SEBI/CFD/DIL/CG/1/2004/12/10 dated October 29, 2004, issued the revised clause 49 of the listing agreement, which has come into effect from January 1, 2006.
SEBI had received requests/suggestions to bring about clarifications on certain provisions of the clause. After examining the same, it has been decided to modify the existing Clause 49 by including the following provisions:
Mandatory provisions:
1. If the non-executive Chairman is a promoter or is related to promoters or persons occupying management positions at the board level or at one level below the board, at least one-half of the board of the company should consist of independent directors.
2. Disclosures of relationships between directors inter-se shall be made in specified documents/filings.
3. The gap between resignation/removal of an independent director and appointment of another independent director in his place shall not exceed 180 days. However, this provision would not apply in case a company fulfils the minimum requirement of independent directors in its Board, i.e., one-third or one-half as the case may be, even without filling the vacancy created by such resignation/removal.
4. The minimum age for independent directors shall be 21 years.
Non-mandatory provisions:
The company shall ensure that the person who is being appointed as an independent director has the requisite qualifications and experience which would be of use to the company and which, in the opinion of the company, would enable him to contribute effectively to the company in his capacity as an independent director.
In view of the above, certain changes have to be incorporated in Clause 49, details of which are placed in Annexure I.
ANNEXURE I
Clause 49 of the Listing Agreement shall be amended as follows –
1. In item (I),
(a) in para (A),
(i) after sub-clause (ii), the following proviso shall be inserted, namely:–
“Provided that where the non-executive Chairman is a promoter of the company or is related to any promoter or person occupying management positions at the Board level or at one level below the Board, at least one-half of the Board of the company shall consist of independent directors.”
(ii) in sub-clause (iii),
(A) in point (e), the word “and” occurring after “director;” shall be omitted;
(B) after point (f), the following shall be inserted, namely:-
“(g) is not less than 21 years of age.”
(b) in para (C), after sub-clause (iii), the following sub-clause shall be inserted,
namely:-
“(iv) An independent director who resigns or is removed from the Board of the Company shall be replaced by a new independent director within a period of not more than 180 days from the day of such resignation or removal, as the case may be:
Provided that where the company fulfils the requirement of independent directors
in its Board even without filling the vacancy created by such resignation or removal, as the case may be, the requirement of replacement by a new independent director within the period of 180 days shall not apply.”
2. In item (IV), in para (G), after sub-clause (i), the following sub-clause shall be inserted, namely: –
“(ia) Disclosure of relationships between directors inter-se shall be made in the Annual Report, notice of appointment of a director, prospectus and letter of offer for issuances and any related filings made to the stock exchanges where the company is listed.”
3. In Annexure 1D under the heading “Non-Mandatory Requirements”, for item no. 1, the following shall be substituted, namely:-
“1. The Board - A non-executive Chairman may be entitled to maintain a Chairman’s office at the company’s expense and also allowed reimbursement of expenses incurred in performance of his duties. Independent Directors may have a tenure not exceeding, in the aggregate, a period of nine years, on the Board of a company. The company may ensure that the person who is being appointed as an independent director has the requisite qualifications and experience which would be of use to the company and which, in the opinion of the company, would enable him to contribute effectively to the company in his capacity as an independent director.”
Circular issued by
Parag Basu
General Manager
Corporation Finance Department
Division of Issues and Listing-II
Phone: +91 22 2644 9360
Fax: +91 22 2644 9016. Email: paragb@sebi.gov.in
April 08, 2008
Corporate Governance in listed Companies – Clause 49 of the Listing Agreement
SEBI, vide circular SEBI/CFD/DIL/CG/1/2004/12/10 dated October 29, 2004, issued the revised clause 49 of the listing agreement, which has come into effect from January 1, 2006.
SEBI had received requests/suggestions to bring about clarifications on certain provisions of the clause. After examining the same, it has been decided to modify the existing Clause 49 by including the following provisions:
Mandatory provisions:
1. If the non-executive Chairman is a promoter or is related to promoters or persons occupying management positions at the board level or at one level below the board, at least one-half of the board of the company should consist of independent directors.
2. Disclosures of relationships between directors inter-se shall be made in specified documents/filings.
3. The gap between resignation/removal of an independent director and appointment of another independent director in his place shall not exceed 180 days. However, this provision would not apply in case a company fulfils the minimum requirement of independent directors in its Board, i.e., one-third or one-half as the case may be, even without filling the vacancy created by such resignation/removal.
4. The minimum age for independent directors shall be 21 years.
Non-mandatory provisions:
The company shall ensure that the person who is being appointed as an independent director has the requisite qualifications and experience which would be of use to the company and which, in the opinion of the company, would enable him to contribute effectively to the company in his capacity as an independent director.
In view of the above, certain changes have to be incorporated in Clause 49, details of which are placed in Annexure I.
ANNEXURE I
Clause 49 of the Listing Agreement shall be amended as follows –
1. In item (I),
(a) in para (A),
(i) after sub-clause (ii), the following proviso shall be inserted, namely:–
“Provided that where the non-executive Chairman is a promoter of the company or is related to any promoter or person occupying management positions at the Board level or at one level below the Board, at least one-half of the Board of the company shall consist of independent directors.”
(ii) in sub-clause (iii),
(A) in point (e), the word “and” occurring after “director;” shall be omitted;
(B) after point (f), the following shall be inserted, namely:-
“(g) is not less than 21 years of age.”
(b) in para (C), after sub-clause (iii), the following sub-clause shall be inserted,
namely:-
“(iv) An independent director who resigns or is removed from the Board of the Company shall be replaced by a new independent director within a period of not more than 180 days from the day of such resignation or removal, as the case may be:
Provided that where the company fulfils the requirement of independent directors
in its Board even without filling the vacancy created by such resignation or removal, as the case may be, the requirement of replacement by a new independent director within the period of 180 days shall not apply.”
2. In item (IV), in para (G), after sub-clause (i), the following sub-clause shall be inserted, namely: –
“(ia) Disclosure of relationships between directors inter-se shall be made in the Annual Report, notice of appointment of a director, prospectus and letter of offer for issuances and any related filings made to the stock exchanges where the company is listed.”
3. In Annexure 1D under the heading “Non-Mandatory Requirements”, for item no. 1, the following shall be substituted, namely:-
“1. The Board - A non-executive Chairman may be entitled to maintain a Chairman’s office at the company’s expense and also allowed reimbursement of expenses incurred in performance of his duties. Independent Directors may have a tenure not exceeding, in the aggregate, a period of nine years, on the Board of a company. The company may ensure that the person who is being appointed as an independent director has the requisite qualifications and experience which would be of use to the company and which, in the opinion of the company, would enable him to contribute effectively to the company in his capacity as an independent director.”
Circular issued by
Parag Basu
General Manager
Corporation Finance Department
Division of Issues and Listing-II
Phone: +91 22 2644 9360
Fax: +91 22 2644 9016. Email: paragb@sebi.gov.in
Wednesday, April 2, 2008
SEBI Proposal on Sales Practices of Stock Brokers
31 march 2008
PROPOSED POLICY FOR IMPROVEMENT IN SALES PRACTICE BY THE
MEMBERS OF THE STOCK EXCHANGES
Introduction
SEBI has received suggestions for further improvement in sales practices
followed by the trading members of the Stock Exchanges. It is observed that the
code of conduct mentioned in the SEBI (Stock-brokers and Sub-brokers)
Regulations, 1992 as well as the bye laws/circulars/rules/regulations of the
exchanges lay down guidelines in respect of sales practices.
The matter was discussed with the Stock exchanges. It is felt that there is a need
to enhance the regulatory framework and also to create a sense of awareness
among investors in this regard. Accordingly, based on the suggestions received
from exchanges, it is proposed that brokers adopt the guidelines prescribed
below:
1. Strengthening KYC Norms
a) The Exposure/Turnover limit given by the trading members should be
commensurate with the financial details of the clients reported in the
KYC. The said limit to be specified in the KYC and strictly adhered to
or the details in KYC to be suitably modified.
b) Only person with financial standing at least comparable to that of the
client he is introducing should be accepted as introducer. The
documents such as PAN Card, Income Tax Return / Proof of residence
etc to be maintained alongwith the KYC of the client to whom he is
introducing.
2. Work history & background of the Trading Member
a) Trading Members may be required to inform the clients (upfront at the
time of entering into Member-Client agreement) about work history &
background of their firm.
b) Actions against the trading member for non-compliance/breach of
regulatory requirements, investor grievances & arbitration cases filed,
pending etc. may be disclosed.
3. Sales practices
a) Trading members owe their clients a duty to provide suitable
investment advice in the best interest of the clients. The basis of sales
efforts should reasonably represent fair treatment for the persons
towards whom the sales efforts are directed.
b) While recommending purchase or sale of any security / derivatives
contract to a client, trading member shall have reasonable grounds for
believing that the recommendation is suitable for such client on the
basis of the facts disclosed by such client as to his / her financial
position, other security holdings, past investment experience & pattern
and investment needs.
c) Prior to the execution of transactions on behalf of a non-institutional
client, trading member shall make reasonable efforts to obtain the
following information regarding the client
• Financial status
• Investment objectives
• Past investment experience & pattern
• Risk appetite of the client.
• Such other information considered to be reasonable by the
trading member
d) Trading members shall not recommend to any client any transactions
unless they have reasonable grounds for believing that the entire
recommended transaction is not unsuitable for the client, based on the
information provided by the client and after reasonable enquiry by the
trading member.
e) Trading members shall ensure that the client is adequately informed of
the nature and the implication of the recommended transactions and
the facts or circumstances which the client needs to know in order to
make informed purchase or sale decision.
f) Trading members shall also assure themselves that the client
understands the risks involved in such orders and has sufficient
networth to be able to assume the risks and bear the potential losses if
such orders result in trades.
g) Trading members shall not recommend to their clients securities or
derivative contracts on such securities in a concentrated manner,
which represents a subjective or arbitrary supply of information.
h) Trading members shall also ensure timely execution of such
transactions of their clients so as to ensure best available price for the
client.
4. Excessive trading activity
a) Trading members shall not encourage or induce excessive trading or
speculative activity in a client’s account which is not in accordance with
the objectives, risk appetite and financial situation of the client
involved.
5. Fair dealing with customers with regard to derivative products or new
financial products
a) Trading members shall ensure fair dealing with customers when
making recommendations or accepting orders for derivatives contracts
and new financial products.
b) As new products are introduced from time to time, it is imperative that
trading members make every effort to familiarize themselves with each customer’s financial situation, trading experience, and ability to meet
the risks involved with such products and to make every effort to make
customers aware of the pertinent information regarding such products.
c) The clients may be required to have certain minimum amount of networth
(e.g.5 lacs) for trading in Derivative Segment. A net-worth
certificate from a practicing Chartered Accountant or acknowledgement
for I.T. return filed should be accepted in this regard.
d) While registering any client for Derivative Segment, apart from signing
a Risk Disclosure Document, the trading member also should ensure
that adequate training vis-à-vis risk associated (including margin
requirement) with Derivative Segment is imparted to the clients.
6. Conflicts of interest
a) Trading members must maintain Chinese wall among its various
activities such as proprietary trading, investment banking, research etc.
b) No trading member may directly or indirectly offer favorable research
or a specific price target to a company as consideration or inducement
for the receipt of business or compensation.
c) Trading members shall ensure that no research analyst may purchase
or sell any security issued by a company that the research analyst
follows or derivative of such security, for a period beginning 30
calendar days before and five calendar days after the publication of a
research report concerning the company.
d) Trading member shall ensure that no research analyst may purchase
or sell any security or derivative of such security in a manner
inconsistent with the research analyst’s recommendation as reflected
in the most recent research report published by the member.
e) A member must disclose in research reports and a research analyst of
the trading member must disclose in public appearances:
(a) if the research analyst or a member of the research analyst’s
household has a financial interest in the securities of the subject
company, and the nature of the financial interest (including,
without limitation, whether it consists of any option, right,
warrant, future, long or short position)
(b) any other actual, material conflict of interest of the trading
member or research analyst of which the trading member knows
or has reason to know at the time of publication of the research
report.
7. Record Keeping
a) Trading members shall establish and maintain procedures to ensure
that sufficient information is recorded and retained about their business and clients for enabling themselves to justify the risk profiling of their
clients and the suitability of any advice given.
8. General obligations
a) Fictitious accounts: Trading members shall not allow establishment of
fictitious accounts in order to execute transactions which otherwise
would be prohibited or to disguise such transactions.
b) Unauthorized transactions: Trading members shall not cause to
execute transactions which are not explicitly authorized by the client
concerned.
c) Misuse of customers’ funds or securities: Trading members shall not
use clients’ funds and / or securities otherwise than as prescribed in
the rules, bye-laws, regulations and circulars issued there under.
d) Front running: Trading members shall not execute transactions for own
account in securities ahead of making recommendations to their clients
in such securities. Trading members shall also have adequate systems
in place to maintain the confidentiality of the information about their
dealing by their clients.
e) Trading members or their representatives shall not indulge in any
fraudulent activities, such as forgery, non-disclosure or misstatement
of material facts, manipulations and various deceptions. Making,
directly or indirectly, any false or misleading advertisement or any
untrue statement of a material fact, constitutes a fraudulent, deceptive
or manipulative act on the part of trading members.
Comments/suggestions are invited on the above proposals.
Comments/suggestions may be sent to the address mentioned below to Mr.
Susanta Kumar Das, Assistant General Manager, Integrated Surveillance
Department, SEBI before April 15, 2008.
Integrated Surveillance Department
SEBI Bhavan, 6th Floor, A-Wing
Plot No.: C4-A, “G” Block
Bandra Kurla complex
Mumbai-400 051
Comments/suggestions may also be emailed to susantad@sebi.gov.in or to
sunilk@sebi.gov.in before April 15, 2008.
http://www.sebi.gov.in/commreport/sales.pdf
PROPOSED POLICY FOR IMPROVEMENT IN SALES PRACTICE BY THE
MEMBERS OF THE STOCK EXCHANGES
Introduction
SEBI has received suggestions for further improvement in sales practices
followed by the trading members of the Stock Exchanges. It is observed that the
code of conduct mentioned in the SEBI (Stock-brokers and Sub-brokers)
Regulations, 1992 as well as the bye laws/circulars/rules/regulations of the
exchanges lay down guidelines in respect of sales practices.
The matter was discussed with the Stock exchanges. It is felt that there is a need
to enhance the regulatory framework and also to create a sense of awareness
among investors in this regard. Accordingly, based on the suggestions received
from exchanges, it is proposed that brokers adopt the guidelines prescribed
below:
1. Strengthening KYC Norms
a) The Exposure/Turnover limit given by the trading members should be
commensurate with the financial details of the clients reported in the
KYC. The said limit to be specified in the KYC and strictly adhered to
or the details in KYC to be suitably modified.
b) Only person with financial standing at least comparable to that of the
client he is introducing should be accepted as introducer. The
documents such as PAN Card, Income Tax Return / Proof of residence
etc to be maintained alongwith the KYC of the client to whom he is
introducing.
2. Work history & background of the Trading Member
a) Trading Members may be required to inform the clients (upfront at the
time of entering into Member-Client agreement) about work history &
background of their firm.
b) Actions against the trading member for non-compliance/breach of
regulatory requirements, investor grievances & arbitration cases filed,
pending etc. may be disclosed.
3. Sales practices
a) Trading members owe their clients a duty to provide suitable
investment advice in the best interest of the clients. The basis of sales
efforts should reasonably represent fair treatment for the persons
towards whom the sales efforts are directed.
b) While recommending purchase or sale of any security / derivatives
contract to a client, trading member shall have reasonable grounds for
believing that the recommendation is suitable for such client on the
basis of the facts disclosed by such client as to his / her financial
position, other security holdings, past investment experience & pattern
and investment needs.
c) Prior to the execution of transactions on behalf of a non-institutional
client, trading member shall make reasonable efforts to obtain the
following information regarding the client
• Financial status
• Investment objectives
• Past investment experience & pattern
• Risk appetite of the client.
• Such other information considered to be reasonable by the
trading member
d) Trading members shall not recommend to any client any transactions
unless they have reasonable grounds for believing that the entire
recommended transaction is not unsuitable for the client, based on the
information provided by the client and after reasonable enquiry by the
trading member.
e) Trading members shall ensure that the client is adequately informed of
the nature and the implication of the recommended transactions and
the facts or circumstances which the client needs to know in order to
make informed purchase or sale decision.
f) Trading members shall also assure themselves that the client
understands the risks involved in such orders and has sufficient
networth to be able to assume the risks and bear the potential losses if
such orders result in trades.
g) Trading members shall not recommend to their clients securities or
derivative contracts on such securities in a concentrated manner,
which represents a subjective or arbitrary supply of information.
h) Trading members shall also ensure timely execution of such
transactions of their clients so as to ensure best available price for the
client.
4. Excessive trading activity
a) Trading members shall not encourage or induce excessive trading or
speculative activity in a client’s account which is not in accordance with
the objectives, risk appetite and financial situation of the client
involved.
5. Fair dealing with customers with regard to derivative products or new
financial products
a) Trading members shall ensure fair dealing with customers when
making recommendations or accepting orders for derivatives contracts
and new financial products.
b) As new products are introduced from time to time, it is imperative that
trading members make every effort to familiarize themselves with each customer’s financial situation, trading experience, and ability to meet
the risks involved with such products and to make every effort to make
customers aware of the pertinent information regarding such products.
c) The clients may be required to have certain minimum amount of networth
(e.g.5 lacs) for trading in Derivative Segment. A net-worth
certificate from a practicing Chartered Accountant or acknowledgement
for I.T. return filed should be accepted in this regard.
d) While registering any client for Derivative Segment, apart from signing
a Risk Disclosure Document, the trading member also should ensure
that adequate training vis-à-vis risk associated (including margin
requirement) with Derivative Segment is imparted to the clients.
6. Conflicts of interest
a) Trading members must maintain Chinese wall among its various
activities such as proprietary trading, investment banking, research etc.
b) No trading member may directly or indirectly offer favorable research
or a specific price target to a company as consideration or inducement
for the receipt of business or compensation.
c) Trading members shall ensure that no research analyst may purchase
or sell any security issued by a company that the research analyst
follows or derivative of such security, for a period beginning 30
calendar days before and five calendar days after the publication of a
research report concerning the company.
d) Trading member shall ensure that no research analyst may purchase
or sell any security or derivative of such security in a manner
inconsistent with the research analyst’s recommendation as reflected
in the most recent research report published by the member.
e) A member must disclose in research reports and a research analyst of
the trading member must disclose in public appearances:
(a) if the research analyst or a member of the research analyst’s
household has a financial interest in the securities of the subject
company, and the nature of the financial interest (including,
without limitation, whether it consists of any option, right,
warrant, future, long or short position)
(b) any other actual, material conflict of interest of the trading
member or research analyst of which the trading member knows
or has reason to know at the time of publication of the research
report.
7. Record Keeping
a) Trading members shall establish and maintain procedures to ensure
that sufficient information is recorded and retained about their business and clients for enabling themselves to justify the risk profiling of their
clients and the suitability of any advice given.
8. General obligations
a) Fictitious accounts: Trading members shall not allow establishment of
fictitious accounts in order to execute transactions which otherwise
would be prohibited or to disguise such transactions.
b) Unauthorized transactions: Trading members shall not cause to
execute transactions which are not explicitly authorized by the client
concerned.
c) Misuse of customers’ funds or securities: Trading members shall not
use clients’ funds and / or securities otherwise than as prescribed in
the rules, bye-laws, regulations and circulars issued there under.
d) Front running: Trading members shall not execute transactions for own
account in securities ahead of making recommendations to their clients
in such securities. Trading members shall also have adequate systems
in place to maintain the confidentiality of the information about their
dealing by their clients.
e) Trading members or their representatives shall not indulge in any
fraudulent activities, such as forgery, non-disclosure or misstatement
of material facts, manipulations and various deceptions. Making,
directly or indirectly, any false or misleading advertisement or any
untrue statement of a material fact, constitutes a fraudulent, deceptive
or manipulative act on the part of trading members.
Comments/suggestions are invited on the above proposals.
Comments/suggestions may be sent to the address mentioned below to Mr.
Susanta Kumar Das, Assistant General Manager, Integrated Surveillance
Department, SEBI before April 15, 2008.
Integrated Surveillance Department
SEBI Bhavan, 6th Floor, A-Wing
Plot No.: C4-A, “G” Block
Bandra Kurla complex
Mumbai-400 051
Comments/suggestions may also be emailed to susantad@sebi.gov.in or to
sunilk@sebi.gov.in before April 15, 2008.
http://www.sebi.gov.in/commreport/sales.pdf
Document filing fee for public issue
31 March 2008
SEBI issued a clarification that ad valorem fee for filing offer document in case of public issue has been reduced from 0.1 % at present to 0.025% of the issue size. there was an error in earlier PR communication
SEBI issued a clarification that ad valorem fee for filing offer document in case of public issue has been reduced from 0.1 % at present to 0.025% of the issue size. there was an error in earlier PR communication
Friday, March 14, 2008
Merchant Bankers should not demand for photocopy of PAN card
SEBI PRESS RELEASE
PR No.88/2008
SEBI instructs Merchant Bankers not to demand for photocopy of PAN card along with Public Issue applications
It has been clarified to all registered Merchant Bankers that, the practice of requiring public issue applicants to attach photocopies of PAN cards with the application form has not been mandated by SEBI and that the present SEBI (DIP) Guidelines only require the PAN number to be quoted in the application forms, irrespective of the size of the application.
SEBI has instructed Merchant Bankers to ensure that all collection agents/ centers /syndicate/ sub syndicate members etc., engaged in collecting application forms do not refuse to accept applications in the absence of photocopy of PAN card.
PR No.88/2008
SEBI instructs Merchant Bankers not to demand for photocopy of PAN card along with Public Issue applications
It has been clarified to all registered Merchant Bankers that, the practice of requiring public issue applicants to attach photocopies of PAN cards with the application form has not been mandated by SEBI and that the present SEBI (DIP) Guidelines only require the PAN number to be quoted in the application forms, irrespective of the size of the application.
SEBI has instructed Merchant Bankers to ensure that all collection agents/ centers /syndicate/ sub syndicate members etc., engaged in collecting application forms do not refuse to accept applications in the absence of photocopy of PAN card.
Shifting Companies from Trade for Trade Segment (TFTS) to Rolling Segment
From SEBI circular MRD/DoP/SE/Cir-04/08 dated 14.3.2008
It is observed from the information provided by the depositories that the companies listed in Annexure A have established connectivity with both the depositories during the month of December 2007.
The stock exchanges may consider shifting the trading in these securities to rolling settlement subject to the following:
a) At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFT segment to Rolling segment. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s.
b) There are no other grounds/reasons for continuation of the trading in TFTS.
It is observed from the information provided by the depositories that the companies listed in Annexure A have established connectivity with both the depositories during the month of December 2007.
The stock exchanges may consider shifting the trading in these securities to rolling settlement subject to the following:
a) At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFT segment to Rolling segment. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s.
b) There are no other grounds/reasons for continuation of the trading in TFTS.
Friday, March 7, 2008
SEBI invites comments on (Prohibition of Insider Trading) Regulations
Consultative Paper
on
amendments to SEBI
(Prohibition of Insider Trading) Regulations 1992
http://www.sebi.gov.in/commreport/InsiderTrading.pdf
On the consultative paper on insider trading regulation SEBI invites comments
Comments are invited from the public on the above proposals. The comments may be
sent by e-mail upto 27th March 2008 to the following addresses –
santoshs@sebi.gov.in (Mr. Santosh Shukla) Dy. Legal Adviser
vidishak@sebi.gov.in (Ms. Vidisha Krishan) Legal Officer
Comments may also be sent physically to the following address, so as to reach latest by
27th March 2008 –
Mr. Santosh Shukla, Deputy Legal Advisor,
Legal Affairs Department
Securities and Exchange Board of India
SEBI Bhavan,
C-4A, G-Block, Bandra Kurla Complex
Mumbai – 400051
on
amendments to SEBI
(Prohibition of Insider Trading) Regulations 1992
http://www.sebi.gov.in/commreport/InsiderTrading.pdf
On the consultative paper on insider trading regulation SEBI invites comments
Comments are invited from the public on the above proposals. The comments may be
sent by e-mail upto 27th March 2008 to the following addresses –
santoshs@sebi.gov.in (Mr. Santosh Shukla) Dy. Legal Adviser
vidishak@sebi.gov.in (Ms. Vidisha Krishan) Legal Officer
Comments may also be sent physically to the following address, so as to reach latest by
27th March 2008 –
Mr. Santosh Shukla, Deputy Legal Advisor,
Legal Affairs Department
Securities and Exchange Board of India
SEBI Bhavan,
C-4A, G-Block, Bandra Kurla Complex
Mumbai – 400051
Tuesday, March 4, 2008
INTRODUCTION OF LONG DATED OPTIONS BSE
As per the SEBI circular SEBI/DNPD/Cir-34/2008 issued on 11-Janury-2008, BSE has introduced 'Long Dated Options on Sensex ' whereby trading in Sensex (normal lot of 15 only and not 'mini' Sensex) Options contracts is available with an expiry upto 3years. The following new options are available for the Sensex (normal lot of 15) Options contracts:
a. Along with the existing 3 monthly rolling contracts, three additional 3 fixed quarterly months of the cycle Mar/Jun/Sep/Dec would be available.
b. Further, 5 additional semi-annual months of the cycle Jun/Dec would be available, so that at any point in time there would be options contract with up to 3 years tenure available.
To illustrate, from the March series onwards i.e from February 29, 2008 onwards, the users will get to trade the following Futures and Options contracts on the normal Sensex market lot of 15 :
Three monthly Futures contracts viz. March, April and May 2008
Three monthy Options contracts viz. March, April and May 2008
Three quarterly Options contracts viz. June 2008, September 2008, December 2008
Five semi-annual Options contracts viz. June 2009, December 2009, June 2010, December 2010 and June 2011.
The existing three monthly Futures and Options series will continue for all the other underlyings presently available in the system and there will be no long dated options available for those underlyings.
Security Symbol BSX
Underlying SENSEX
Contract Multiplier 15
Contract Period Upto 3 years
Exercise Style European
Settlement Style Cash
Tick size 0.05 index points
Premium Quotation In index points
Strike price Intervals Shall have a minimum of 3 strikes (1 in-the-money, 1 near-the-money, 1 out-of-the-money).
Trading Hours 9:55 a.m. to 3:30 p.m.
Last Trading/Expiration Day: Last Thursday of the contract month in case of monthly & last Friday of contract maturity in case of weekly options. If it is a holiday, then the immediately preceding business day. For this purpose business day is a day during which the underlying stock market is open for trading.
a. Along with the existing 3 monthly rolling contracts, three additional 3 fixed quarterly months of the cycle Mar/Jun/Sep/Dec would be available.
b. Further, 5 additional semi-annual months of the cycle Jun/Dec would be available, so that at any point in time there would be options contract with up to 3 years tenure available.
To illustrate, from the March series onwards i.e from February 29, 2008 onwards, the users will get to trade the following Futures and Options contracts on the normal Sensex market lot of 15 :
Three monthly Futures contracts viz. March, April and May 2008
Three monthy Options contracts viz. March, April and May 2008
Three quarterly Options contracts viz. June 2008, September 2008, December 2008
Five semi-annual Options contracts viz. June 2009, December 2009, June 2010, December 2010 and June 2011.
The existing three monthly Futures and Options series will continue for all the other underlyings presently available in the system and there will be no long dated options available for those underlyings.
Security Symbol BSX
Underlying SENSEX
Contract Multiplier 15
Contract Period Upto 3 years
Exercise Style European
Settlement Style Cash
Tick size 0.05 index points
Premium Quotation In index points
Strike price Intervals Shall have a minimum of 3 strikes (1 in-the-money, 1 near-the-money, 1 out-of-the-money).
Trading Hours 9:55 a.m. to 3:30 p.m.
Last Trading/Expiration Day: Last Thursday of the contract month in case of monthly & last Friday of contract maturity in case of weekly options. If it is a holiday, then the immediately preceding business day. For this purpose business day is a day during which the underlying stock market is open for trading.
Thursday, February 28, 2008
Announcement of Risk of Mutual Funds
26 Feb 2008
With reference to clause 2 of the circular SEBI/MFD/CIR No.6/ 12357/03 dated June 26, 2003 for Advertisements through Audio-Visual media SEBi made the following observations.
The rapid fire manner in which the standard warning ?Mutual Fund investments are subject to market risks, read the offer document carefully before investing is recited in the audio visual and audio media renders it unintelligible to the viewer / listener.
In order to improve the manner in which the said message is conveyed to the investors it has been decided in consultation with AMFI that with effect from April 1, 2008:
the time for display and voice over of the standard warning be enhanced to five seconds in audio visual advertisements.
in case of audio advertisements the standard warning shall be read in an easily understandable manner over a period of five seconds.
With reference to clause 2 of the circular SEBI/MFD/CIR No.6/ 12357/03 dated June 26, 2003 for Advertisements through Audio-Visual media SEBi made the following observations.
The rapid fire manner in which the standard warning ?Mutual Fund investments are subject to market risks, read the offer document carefully before investing is recited in the audio visual and audio media renders it unintelligible to the viewer / listener.
In order to improve the manner in which the said message is conveyed to the investors it has been decided in consultation with AMFI that with effect from April 1, 2008:
the time for display and voice over of the standard warning be enhanced to five seconds in audio visual advertisements.
in case of audio advertisements the standard warning shall be read in an easily understandable manner over a period of five seconds.
Sunday, February 24, 2008
Sovereign wealth fund for energy assets abroad
India plans sovereign wealth fund for energy assets abroad
New Delhi, Feb 19 (PTI) India plans to set up a multi billion dollar sovereign wealth fund to invest in energy assets overseas.
"The plans are at a very initial stage. A decision on this would be taken after the budget. The fund would invest in overseas energy assets like Temasek of Singapore does," Planning Commission Member Surya Sethi said here.
When asked about the corpus of the fund, he said it has to be in billions of dollars.
Asked about the need to set up such a fund, a top Plan panel official said the proposed fund would be one of the way to earn higher returns as compared to those investing in domestic projects.
"We have large (forex) reserves... Which have associated costs. Up to a certain level, costs are justified in minimising the risk of fluctuations and any kind of shocks," he said.
Beyond a point, costs cannot be justified and "therefore you need to find other ways to earn revenue", the official said. PTI
New Delhi, Feb 19 (PTI) India plans to set up a multi billion dollar sovereign wealth fund to invest in energy assets overseas.
"The plans are at a very initial stage. A decision on this would be taken after the budget. The fund would invest in overseas energy assets like Temasek of Singapore does," Planning Commission Member Surya Sethi said here.
When asked about the corpus of the fund, he said it has to be in billions of dollars.
Asked about the need to set up such a fund, a top Plan panel official said the proposed fund would be one of the way to earn higher returns as compared to those investing in domestic projects.
"We have large (forex) reserves... Which have associated costs. Up to a certain level, costs are justified in minimising the risk of fluctuations and any kind of shocks," he said.
Beyond a point, costs cannot be justified and "therefore you need to find other ways to earn revenue", the official said. PTI
Saturday, February 23, 2008
Order against Moneycare Securities & Financial Services Ltd
Order against Moneycare Securities & Financial Services Ltd.,
Member of NSE
21 Feb 2008
Dr. T.C.Nair, Whole Time Member, SEBI has passed an order against Moneycare Securities & Financial Services Ltd., Member, National Stock Exchange of India Ltd., imposing a penalty of suspension of Certificate of Registration of the broker for one day.
The order has been passed for the dealings of the broker in the shares of Adani Exports Ltd.(AEL) during the period January 1, 1999 to March 31, 1999.
The order shall come into effect immediately after the expiry of 21 days from the date of the order.
SEBI PR No. PR No.64/2008
Member of NSE
21 Feb 2008
Dr. T.C.Nair, Whole Time Member, SEBI has passed an order against Moneycare Securities & Financial Services Ltd., Member, National Stock Exchange of India Ltd., imposing a penalty of suspension of Certificate of Registration of the broker for one day.
The order has been passed for the dealings of the broker in the shares of Adani Exports Ltd.(AEL) during the period January 1, 1999 to March 31, 1999.
The order shall come into effect immediately after the expiry of 21 days from the date of the order.
SEBI PR No. PR No.64/2008
IFC Global Corporate Governance Forum
Feb 22, 2008
IFC Global Corporate Governance Forum Partners with SEBI and NISM to Promote Awareness of Governance Reform in India
(India Press Release by Integral PR Services)
In consultation with the Securities Exchange Board of India and the National Institute for Securities Markets, the IFC Global Corporate Governance Forum has designed a program to address key elements of corporate governance reform, capacity building, and enhance awareness in India.
As part of this collaboration, a business investor dialogue is being organized to facilitate discussions between the private sector, domestic and international investors, and the Securities Exchange Board and to shed light on that state of governance in Indian companies. Issues to be explored include the effectiveness of various governance structures, the role of the board, disclosure, and enforcement.
The event will give participants an opportunity to make recommendations for improving corporate governance among enterprises. Discussions around research on the state of corporate governance in India’s listed companies will be conducted by Professor Vic Khanna of the University of Michigan, Professor Bernard Black of the University of Texas, and Professor N. Balasubramanian of the Indian Institute of Management in Bangalore.
The ongoing research includes surveys of 500 publicly traded companies, representing various sectors in the country's six largest cities. This research is supplemented by publicly available information. The data analysis seeks to identify the connections between various aspects of governance, company performance, and profitability.
The event aims to identify challenges facing companies, offer possible measures for improvement, and provide an opportunity for local and international business leaders and investors to share views and experiences on the investment climate in India. It also aims to generate discussions and obtain policy recommendations from an assembly of local business representatives and investors.
Participants expected include investors and senior business leaders from Barclays, Bombay Stock Exchange, Crisil, National Stock Exchange, Fortis, Kotak, KPMG, Tata Motors, and Wipro.
IFC Global Corporate Governance Forum Partners with SEBI and NISM to Promote Awareness of Governance Reform in India
(India Press Release by Integral PR Services)
In consultation with the Securities Exchange Board of India and the National Institute for Securities Markets, the IFC Global Corporate Governance Forum has designed a program to address key elements of corporate governance reform, capacity building, and enhance awareness in India.
As part of this collaboration, a business investor dialogue is being organized to facilitate discussions between the private sector, domestic and international investors, and the Securities Exchange Board and to shed light on that state of governance in Indian companies. Issues to be explored include the effectiveness of various governance structures, the role of the board, disclosure, and enforcement.
The event will give participants an opportunity to make recommendations for improving corporate governance among enterprises. Discussions around research on the state of corporate governance in India’s listed companies will be conducted by Professor Vic Khanna of the University of Michigan, Professor Bernard Black of the University of Texas, and Professor N. Balasubramanian of the Indian Institute of Management in Bangalore.
The ongoing research includes surveys of 500 publicly traded companies, representing various sectors in the country's six largest cities. This research is supplemented by publicly available information. The data analysis seeks to identify the connections between various aspects of governance, company performance, and profitability.
The event aims to identify challenges facing companies, offer possible measures for improvement, and provide an opportunity for local and international business leaders and investors to share views and experiences on the investment climate in India. It also aims to generate discussions and obtain policy recommendations from an assembly of local business representatives and investors.
Participants expected include investors and senior business leaders from Barclays, Bombay Stock Exchange, Crisil, National Stock Exchange, Fortis, Kotak, KPMG, Tata Motors, and Wipro.
Friday, February 22, 2008
FII purchases in Oct - Dec 2007
Feb. 18 2008
According to SEBI data, net FII purchases dwindled from Rs 32,000 crore between July and September 2007 to Rs 20,000 crore in the October-December quarter. However, the value of FII holdings in S&P CNX 500 stocks rose from Rs 10 lakh crore at the end of September to more than Rs 12 lakh crore at the end of December.
http://www.thehindubusinessline.com/2008/02/19/stories/2008021952461400.htm
According to SEBI data, net FII purchases dwindled from Rs 32,000 crore between July and September 2007 to Rs 20,000 crore in the October-December quarter. However, the value of FII holdings in S&P CNX 500 stocks rose from Rs 10 lakh crore at the end of September to more than Rs 12 lakh crore at the end of December.
http://www.thehindubusinessline.com/2008/02/19/stories/2008021952461400.htm
Business Confidence Index
23 Feb 2008
In its latest BCI tracked by the non-profit think-tank on policy the National Council of Applied Economic Research (NCAER) shows that the latest round for the third quarter of the current fiscal has logged an increase of 5.4 per cent, which is the second successive improvement, following the recovery in the second quarter.
http://www.thehindubusinessline.com/2008/02/23/stories/2008022352421000.htm
In its latest BCI tracked by the non-profit think-tank on policy the National Council of Applied Economic Research (NCAER) shows that the latest round for the third quarter of the current fiscal has logged an increase of 5.4 per cent, which is the second successive improvement, following the recovery in the second quarter.
http://www.thehindubusinessline.com/2008/02/23/stories/2008022352421000.htm
(Real Estate Investment Trusts) Regulations, 2008
DRAFT SECURITIES AND EXCHANGE BOARD OF INDIA (REAL ESTATE INVESTMENT TRUSTS) REGULATIONS, 2008 FOR PUBLIC COMMENTS
1 Jan 2008
In recent years, India's real estate business has seen significant expansion, underpinned by rapid economic growth coupled with a series of IPOs by real estate companies. Changing demographics, rising levels of foreign investment, a vibrant services sector powered by the IT sector and buoyant exports are the major contributors for India’s rapid GDP growth. The GDP growth and corporates' growing scale of operations have led to greater demand for commercial space, including modern offices, warehouses, lodging facilities and operational infrastructure. It has also boosted housing demand. Moreover, improved access to housing finance has boosted the demand for residential property. Over the last few years, modern real estate development and some investor interest has spread beyond metros and large cities.
In the aforesaid backdrop, Real Estate Investment Trusts (REITs) play a crucial role. REITs have become a preferred public property investment vehicle around the world. REITs boost and help to stabilize capital access, and reduce capital costs. REITs help in real estate business efficiently by creating conditions for building integrated property businesses. Most REITs in the leading markets are internally managed, and have diverse skill bases in property development, redevelopment, acquisitions, leasing and management.
REITs provide better access to stable, global and more competitively priced capital, as well as stronger and more professional property businesses. A significant part of the urban development activities currently underway is being undertaken by private sector real estate development companies. To raise resources from the capital markets and to achieve economies of scale, private sector developers adopt better corporate governance and financial transparency practices.
In the residential sector, a growing middle class is enjoying rising income levels. Increasing consumer interest has encouraged growth in organized retailing contributing to the spread of 'mall culture' and the popularity of other large-scale retail property developments. REITs can become the investment vehicle of choice for institutional and retail investors looking to participate in real estate ownership, management and development. They provide a similar structure for investors buying into real estate as mutual funds provide for investment in stocks.
With a view to encourage and facilitate healthy growth of REITs in India, SEBI is proposing to frame the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2008.
download the draft regulations from
http://www.sebi.gov.in/commreport/RealEstateReg.pdf
Comments/suggestions on the draft SEBI (REIT) Regulations may be sent, on or before January 10, 2008, to Shri J.Ranganayakulu, Legal Adviser, 5th Floor, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 or by email to rangaj@sebi.gov.in
1 Jan 2008
In recent years, India's real estate business has seen significant expansion, underpinned by rapid economic growth coupled with a series of IPOs by real estate companies. Changing demographics, rising levels of foreign investment, a vibrant services sector powered by the IT sector and buoyant exports are the major contributors for India’s rapid GDP growth. The GDP growth and corporates' growing scale of operations have led to greater demand for commercial space, including modern offices, warehouses, lodging facilities and operational infrastructure. It has also boosted housing demand. Moreover, improved access to housing finance has boosted the demand for residential property. Over the last few years, modern real estate development and some investor interest has spread beyond metros and large cities.
In the aforesaid backdrop, Real Estate Investment Trusts (REITs) play a crucial role. REITs have become a preferred public property investment vehicle around the world. REITs boost and help to stabilize capital access, and reduce capital costs. REITs help in real estate business efficiently by creating conditions for building integrated property businesses. Most REITs in the leading markets are internally managed, and have diverse skill bases in property development, redevelopment, acquisitions, leasing and management.
REITs provide better access to stable, global and more competitively priced capital, as well as stronger and more professional property businesses. A significant part of the urban development activities currently underway is being undertaken by private sector real estate development companies. To raise resources from the capital markets and to achieve economies of scale, private sector developers adopt better corporate governance and financial transparency practices.
In the residential sector, a growing middle class is enjoying rising income levels. Increasing consumer interest has encouraged growth in organized retailing contributing to the spread of 'mall culture' and the popularity of other large-scale retail property developments. REITs can become the investment vehicle of choice for institutional and retail investors looking to participate in real estate ownership, management and development. They provide a similar structure for investors buying into real estate as mutual funds provide for investment in stocks.
With a view to encourage and facilitate healthy growth of REITs in India, SEBI is proposing to frame the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2008.
download the draft regulations from
http://www.sebi.gov.in/commreport/RealEstateReg.pdf
Comments/suggestions on the draft SEBI (REIT) Regulations may be sent, on or before January 10, 2008, to Shri J.Ranganayakulu, Legal Adviser, 5th Floor, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 or by email to rangaj@sebi.gov.in
'Short Swing Profit' regulations
Consultative Paper on introduction of 'Short Swing Profit' regulations in India
1 Jan 2008
Download from
http://www.sebi.gov.in/commreport/ShortSwing.pdf
1 Jan 2008
Download from
http://www.sebi.gov.in/commreport/ShortSwing.pdf
Consultative Paper on Securities and Exchange Board of India
Consultative Paper on Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008
3 Jan 2008
Download from
http://www.sebi.gov.in/commreport/DebtReg.pdf
3 Jan 2008
Download from
http://www.sebi.gov.in/commreport/DebtReg.pdf
Introduction of Index options with longer tenure
Introduction of Index options with longer tenure
11 Jan 2008
SEBI issued a circular regarding this.
1. The SEBI Derivatives Market Review Committee (DMRC) headed by Professor M.
Rammohan Rao, recommended the introduction of new derivative products in the
Indian market, with option contracts on indices and stocks with life/tenure of up to 5 years (60 months) being one of them.
2. To begin with, it has been decided to launch long term options on Sensex and Nifty
with tenures of upto 3 years. The options cycle shall be as under:
a. The 3 serial month contracts would continue to exist.
b. The following 3 quarterly months of the cycle Mar/Jun/Sep/Dec would be
available.
c. After these, 5 following semi-annual months of the cycle Jun/Dec would be
available, so that at any point in time there would be options contract with
atleast 3 year tenure available for investors.
3. The risk containment and other measures applicable for existing exchange traded
equity Index option contracts shall be extended suitably to long term option contracts on Index.
SEBI Circular No. SEBI/DNPD/Cir-34/2008
January 11, 2008
11 Jan 2008
SEBI issued a circular regarding this.
1. The SEBI Derivatives Market Review Committee (DMRC) headed by Professor M.
Rammohan Rao, recommended the introduction of new derivative products in the
Indian market, with option contracts on indices and stocks with life/tenure of up to 5 years (60 months) being one of them.
2. To begin with, it has been decided to launch long term options on Sensex and Nifty
with tenures of upto 3 years. The options cycle shall be as under:
a. The 3 serial month contracts would continue to exist.
b. The following 3 quarterly months of the cycle Mar/Jun/Sep/Dec would be
available.
c. After these, 5 following semi-annual months of the cycle Jun/Dec would be
available, so that at any point in time there would be options contract with
atleast 3 year tenure available for investors.
3. The risk containment and other measures applicable for existing exchange traded
equity Index option contracts shall be extended suitably to long term option contracts on Index.
SEBI Circular No. SEBI/DNPD/Cir-34/2008
January 11, 2008
Introduction of Volatility Index for Derivative Exchanges
Introduction of Volatility Index
15 Jan 2008
The SEBI appointed Derivatives Market Review Committee (DMRC), headed by Professor M.
Rammohan Rao, recommended the introduction of Volatility Index and Futures and Options on this Index.
Accordingly, it has been decided that, to begin with, Exchanges shall construct a Volatility Index and disseminate the same. The Exchanges are free to decide whether they want to adopt any of the Volatility Index computation models available globally or may like to develop their own model for computation of Volatility Index. The detailed methodology for computing the Volatility Index shall be disseminated by the Exchange for the benefit of the market participants and investors.
Based on experience gained and awareness generated, derivatives on Volatility Index shall be considered for introduction in due course of time.
15 Jan 2008
The SEBI appointed Derivatives Market Review Committee (DMRC), headed by Professor M.
Rammohan Rao, recommended the introduction of Volatility Index and Futures and Options on this Index.
Accordingly, it has been decided that, to begin with, Exchanges shall construct a Volatility Index and disseminate the same. The Exchanges are free to decide whether they want to adopt any of the Volatility Index computation models available globally or may like to develop their own model for computation of Volatility Index. The detailed methodology for computing the Volatility Index shall be disseminated by the Exchange for the benefit of the market participants and investors.
Based on experience gained and awareness generated, derivatives on Volatility Index shall be considered for introduction in due course of time.
Removal of Initial issue expenses of Closed Ended MFs
31 Jan 2008
Currently close-ended schemes are permitted to charge initial issue expenses and not charge entry load. In order to bring in more transparency and clarity to the investors in terms of the expenses charged to them in closed-end schemes, SEBI Board in a recent meeting decided as under:
1. Henceforth, there will not be any provision of charging initial issue expense and amortization of the same.
2. All mutual fund schemes shall now meet the sales, marketing and other such expenses connected with sales and distribution of schemes from the entry load.
This circular would be applicable to all mutual fund schemes launched after the date of the circular.
Currently close-ended schemes are permitted to charge initial issue expenses and not charge entry load. In order to bring in more transparency and clarity to the investors in terms of the expenses charged to them in closed-end schemes, SEBI Board in a recent meeting decided as under:
1. Henceforth, there will not be any provision of charging initial issue expense and amortization of the same.
2. All mutual fund schemes shall now meet the sales, marketing and other such expenses connected with sales and distribution of schemes from the entry load.
This circular would be applicable to all mutual fund schemes launched after the date of the circular.
SEBI on Art Funds
13 Feb 2008
SEBI issues advisory on Art Funds
SEBI has advised investors with regard to their investments in Art Funds that Art Funds are Collective Investment Schemes as defined under the SEBI Act. At present, no entity has registered with SEBI, under the SEBI (Collective Investment Schemes) Regulations.
Launching / floating of Art Funds or Schemes without obtaining registration from SEBI amounts to violation of SEBI Act and Regulations. Appropriate actions, civil and criminal, under the SEBI Act may be taken by SEBI against such funds / companies.
SEBI issues advisory on Art Funds
SEBI has advised investors with regard to their investments in Art Funds that Art Funds are Collective Investment Schemes as defined under the SEBI Act. At present, no entity has registered with SEBI, under the SEBI (Collective Investment Schemes) Regulations.
Launching / floating of Art Funds or Schemes without obtaining registration from SEBI amounts to violation of SEBI Act and Regulations. Appropriate actions, civil and criminal, under the SEBI Act may be taken by SEBI against such funds / companies.
Thursday, February 21, 2008
Reliance Power demands inquiry regarding into Price Fall
Reliance Power demands stock market inquiry
18 Feb 2008
Reliance Power Ltd (RPL), promoted by the Reliance Anil Dhirubhai Ambani Group (RADAG), has sought an inquiry by the markets regulator into the factors that resulted in a steep decline in the company's stock prices on its debut Feb 11.
In a communique Monday to the Bombay Stock Exchange (BSE), RPL said the slide was compounded by 'a vicious and orchestrated campaign of market manipulation and market abuse, unleashed by unscrupulous rival corporate interests, to hammer down all RADAG stocks'.
The statement added that this was an attempt to undermine the group's 'fair name and reputation and cause losses to million of genuine investors'.
The company said it had written to markets regulator Securities and Exchange Board of India (SEBI) seeking an investigation.
RPL also informed BSE that its board would consider a proposal Feb 24 to issue bonus shares to all categories of shareholders except the promoters.
The bonus issue would be considered 'in keeping with the Reliance ADA Group's fundamental and overriding philosophy of creating value for genuine long-term investors.
'This will include inter alia consideration of a proposal for issuing free bonus shares to all categories of shareholders, excluding the promoter group, thereby protecting investors even from notional short-term losses.
'The proposal will result in dilution of the promoter group's shareholding in Reliance Power.'
From the time of opening of the Reliance Power initial public offer (IPO) Jan 15, the sensitive index (Sensex) of the Bombay Stock Exchange was down 13 percent. The company's stock was down by a comparatively lower level of 11 percent from the issue price for retail investors, the company said.
Despite drawing record subscriptions, the first day of listing saw the Reliance scrip close at Rs.372 on the opening day Feb 11, with a huge discount over the issue price of Rs.450.
This had created huge resentment and disappointment among investors, who had overwhelmingly subscribed to the issue, as many expected the scrip to debut higher at around Rs.750-850 a share.
The IPO had attracted more than five million bids from all categories of domestic and international investors with aggregate commitment of over Rs.7.5 trillion ($189 billion) against the issue size of Rs.115.60 billion ($2.91 billion).
The company is currently developing 12 power projects in the country with a total planned installed capacity of 28,000 MW. This is among the largest portfolios of power generation assets under development.(Indiaenews)
18 Feb 2008
Reliance Power Ltd (RPL), promoted by the Reliance Anil Dhirubhai Ambani Group (RADAG), has sought an inquiry by the markets regulator into the factors that resulted in a steep decline in the company's stock prices on its debut Feb 11.
In a communique Monday to the Bombay Stock Exchange (BSE), RPL said the slide was compounded by 'a vicious and orchestrated campaign of market manipulation and market abuse, unleashed by unscrupulous rival corporate interests, to hammer down all RADAG stocks'.
The statement added that this was an attempt to undermine the group's 'fair name and reputation and cause losses to million of genuine investors'.
The company said it had written to markets regulator Securities and Exchange Board of India (SEBI) seeking an investigation.
RPL also informed BSE that its board would consider a proposal Feb 24 to issue bonus shares to all categories of shareholders except the promoters.
The bonus issue would be considered 'in keeping with the Reliance ADA Group's fundamental and overriding philosophy of creating value for genuine long-term investors.
'This will include inter alia consideration of a proposal for issuing free bonus shares to all categories of shareholders, excluding the promoter group, thereby protecting investors even from notional short-term losses.
'The proposal will result in dilution of the promoter group's shareholding in Reliance Power.'
From the time of opening of the Reliance Power initial public offer (IPO) Jan 15, the sensitive index (Sensex) of the Bombay Stock Exchange was down 13 percent. The company's stock was down by a comparatively lower level of 11 percent from the issue price for retail investors, the company said.
Despite drawing record subscriptions, the first day of listing saw the Reliance scrip close at Rs.372 on the opening day Feb 11, with a huge discount over the issue price of Rs.450.
This had created huge resentment and disappointment among investors, who had overwhelmingly subscribed to the issue, as many expected the scrip to debut higher at around Rs.750-850 a share.
The IPO had attracted more than five million bids from all categories of domestic and international investors with aggregate commitment of over Rs.7.5 trillion ($189 billion) against the issue size of Rs.115.60 billion ($2.91 billion).
The company is currently developing 12 power projects in the country with a total planned installed capacity of 28,000 MW. This is among the largest portfolios of power generation assets under development.(Indiaenews)
Bhave takes over rein as SEBI Chief
India's markets watchdog gets new chief
18 Feb 2008
Chandrasekhar Bhaskar Bhave took over the reins as the new chief of markets regulator Securities and Exchange Board of India (SEBI) Monday evening from outgoing chairman Meleveetil Damodaran.
The former chairman of National Securities Depository Ltd (NSDL), India's central repository of dematerialised stocks, Bhave hails from Nagpur in Maharashtra.
He is no stranger to SEBI. In 1992, Bhave joined the newly formed SEBI as executive director.
During his stint with SEBI, he was instrumental in conceptualising the National Stock Exchange (NSE) and banning the 'badla' system, an Indian version of futures trading.
Considered a no-nonsense officer, Bhave is an electrical engineer by training and belongs to the 1975 batch of the Indian Administrative Service.
Kicking off his bureaucratic stint as district collector at Nanded in south central Maharashtra, Bhave went on to serve as an undersecretary in the central ministry of finance and deputy secretary in the ministry of petroleum before serving as additional industries commissioner of Maharashtra.
In 1996, Bhave quit the administrative service and joined NSDL as chairman and managing director. He is credited with the introduction of the dematerialised stocks system in the Indian market. NSDL is central repository for such stocks.
A familiar face in financial circles, Bhave locked horns with Damodaran over the initial public offer (IPO) of Oil and Natural Gas Corp (ONGC). It took the Securities Appellate Tribunal to sort out the legal tangle.
18 Feb 2008
Chandrasekhar Bhaskar Bhave took over the reins as the new chief of markets regulator Securities and Exchange Board of India (SEBI) Monday evening from outgoing chairman Meleveetil Damodaran.
The former chairman of National Securities Depository Ltd (NSDL), India's central repository of dematerialised stocks, Bhave hails from Nagpur in Maharashtra.
He is no stranger to SEBI. In 1992, Bhave joined the newly formed SEBI as executive director.
During his stint with SEBI, he was instrumental in conceptualising the National Stock Exchange (NSE) and banning the 'badla' system, an Indian version of futures trading.
Considered a no-nonsense officer, Bhave is an electrical engineer by training and belongs to the 1975 batch of the Indian Administrative Service.
Kicking off his bureaucratic stint as district collector at Nanded in south central Maharashtra, Bhave went on to serve as an undersecretary in the central ministry of finance and deputy secretary in the ministry of petroleum before serving as additional industries commissioner of Maharashtra.
In 1996, Bhave quit the administrative service and joined NSDL as chairman and managing director. He is credited with the introduction of the dematerialised stocks system in the Indian market. NSDL is central repository for such stocks.
A familiar face in financial circles, Bhave locked horns with Damodaran over the initial public offer (IPO) of Oil and Natural Gas Corp (ONGC). It took the Securities Appellate Tribunal to sort out the legal tangle.
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