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.
Thursday, February 28, 2008
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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