Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>The market regulator has tightened some regulations for companies that are launching IPOs to protect investor interest and prevent volatility in stock prices.</li><li>Along with new norms for IPOs, <keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">SEBI</keyword> has come up with stringent norms for winding up of a mutual fund scheme.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them.</li></ul>India’s financial markets regulator has come up with a slew of measures to tighten the rules for companies coming out with an initial public offering (IPO) to protect investor interest and prevent volatility in such stocks. The new regulations pertain to change in lock-in period of anchor investors, utilisation of IPO proceeds, restrictions on large shareholdings and a cap on sale of promoter shares via IPO. This comes after shares of several IPOs including Paytm and Zomato facing huge volatility after anchor investors sold shares right after their 30-day lock-in period leading to a huge fall in the share price. Note that the share sale by big institutional investors shakes investors’ confidence, which can lead to hasty selling by investors. Securities and Exchange Board of India (SEBI) is trying to prevent this by increasing the lock-in period to 90 days from 30 days. Anchor investors can only sell 50% of their holding after 30 days. Anchor investors are institutional investors who are allotted shares just before an IPO opens for subscription. The market regulator has also addressed the ongoing trend of promoters selling their entire stake in the company through IPO. When promoters of companies or rather startups that are not doing well financially sell their entire stake in the company, it is bound to shake investor confidence in the IPO. From now, shareholders with over 20% stake can sell only half of its shares through the IPO. Here are the key changes put forward by SEBI: <ul><li>New regulation restricts large shareholders (with more than 20% stake) from selling their entire stake in the company. Now they can only sell half of their overall shareholding.</li><li>Companies can only use 25% of the IPO proceeds for unidentified acquisitions in the draft red herring prospectus (DRHP). This comes after companies not disclosing usage of IPO proceeds in detail.</li><li>Existing lock-in period of 30 days for anchor investors shall continue only for 50% of the holdings, the remaining 50% shares can only be sold after 90 days.</li><li>About 33% of the portion will be reserved for non-institutional investors (NIIs) with investment between ₹2 lakh - ₹10 lakh.</li><li>Remaining 66% of the portion will be reserved for NIIs with more than ₹10 lakh investment.</li><li>Winding up of mutual fund schemes would now be possible only after the consent of majority unitholders. </li></ul>SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/sebi-doesnt-want-mutual-funds-diving-into-crypto-assets-at-least-until-the-crypto-bill-is-finalised/articleshow/88563302.cms">India’s market watchdog warns mutual funds to stay away from crypto assets at least until regulations come in</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/urban-company-ola-uber-are-not-the-best-places-for-gig-workers/articleshow/88561764.cms">Urban Company is not the best place for gig workers anymore and Ola, Uber are the worst</a>

SEBI comes out with stringent norms to save IPO investors from losing big money

New Delhi, Feb 28 () Markets regulator Sebi on Friday imposed a total penalty of Rs 80 lakh on 16 entities for conducting fraudulent trading in the scrip of Mapro Industries Ltd.The order follows a probe by Sebi into the trading in the company shares between July 2014 and November 2014. Sebi, from the trading pattern of the entities, noted that the entities manipulated the share price of the company by contributing positively to the LTP (last traded price) which consequently led to the rise in the price of the scrip.Therefore, the entities have been fined Rs 5 lakh each for violating Prohibition of Fraudulent and Unfair Trade Practices norms. Apart from nine individuals, the entities include Cosmos Distributors, Bhargabi Trading, Jagsakti Tower, Jahman Agency, Ritudhan Marketing, Godavari Real Estate and V.S.G. Leasing and Finance Co. In a separate order, Sebi levied a total fine of Rs 40 lakh on Midfield Industries Ltd its chairman and managing director Madhu Mohan Reddy and executive director Ashok Sagar Mudumba for diverting the funds raised from initial public offer (IPO) of the firm. Out of Rs 59.85 crore of the IPO proceeds, the firm utilized Rs 30.89 crore towards clearing its pre-existing overdraft balance, which was not mentioned in the prospectus. "The Noticees had committed a fraud in diverting the funds raised through IPO and not utilized the money in accordance with the objects of the issue as stated in the prospectus," Sebi said.Separately, Sebi slapped a total fine of Rs 22 lakh on MPF Systems and its senior officials-- Kirti Salvi, Anil Kothari, Aakesh Chopra and Ambrish Barsati Pal for flouting various market norms.It was found that there was failure on the part of the firm to comply with principles of corporate governance and accounting standard leading to misrepresentation of financial statements.Among others, the entities failed to "recover the sundry debts and also failed to file any document to substantiate their submission that they rectify the error made by earlier management," Sebi said. SRS MRMR

Sebi levies Rs 80 lakh fine on 16 entities for fraudulent trading in Mapro Industries' scrip

New Delhi, Feb 10 () Markets regulator Sebi on Monday levied a total fine of Rs 12.05 crore on Tarini International Ltd and its officials for utilising the initial public offering (IPO) proceeds for purposes other than stated in the prospectus. Additionally, they had also concealed crucial information, such as loan taken from Hind Ispat prior to the IPO, from investors. Of the total fine levied by Sebi, Rs 5.05 crore have been imposed on the firm, while its managing director Vakamulla Chandra Shekhar and whole-time director Vakamulla Anu Naidu face a fine of Rs 5 crore each for violating various market norms. The regulator carried out investigation between June 2014 and August 2014 into the IPO of equity shares issued by Tarini International and its subsequent activities related to the trading of shares. The objectives of the IPO in the prospectus were for meeting long-term working capital requirements and renovation of the registered office, among others. However, the firm did not utilise the proceeds for the mentioned objectives and diverted the funds to the group companies. Sebi noted that the firm and its officials have misappropriated the proceeds of IPO aggregating to Rs 11.71 crore and transferred it to its group entities. "It is concluded that the Noticees, by their act, have disturbed the equilibrium of securities market by not disclosing material information to investors and misappropriating IPO proceed for the purpose other than that mentioned in the prospectus," Sebi said. In March 2019, Sebi had passed directions against the firm and its officials for the same set of violations and had directed the company to recover IPO proceeds aggregating to Rs 11.7 crore and also barred them from securities market for four years from the date of completion of recovery of the diverted funds with interest. SRS HRS

Sebi levies over Rs 12 cr fine on Tarini International, officials for flouting market norms

New Delhi, Dec 18 () Markets regulator Sebi has imposed a penalty of Rs 10 lakh on Magnum Fincom Broking and 22 other entities for cornering the shares reserved for the retail category in three initial public offerings (IPOs).
 The Securities and Exchange Board of India (Sebi) conducted an investigation into the dealing of Magnum and 22 connected entities in the IPO of Kernex Microsystems, Punj Lloyd and ABG Shipyard during the period from November 2005 to January 2006 with regard to the alleged violations of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
 The probe found that Magnum employed a scheme or device of misusing the IPO allotment process by cornering the shares of the three IPOs that were intended for genuine retail allottees, and was aided and abetted by the 22 connected entities.
 Magnum has made a profit of Rs 3.34 lakh by selling the shares received through the IPO allotment, it added.
 Accordingly, the regulator has slapped a fine of Rs 10 lakh to be paid jointly and severally, on these entities.
 In a separate order, the regulator has slapped a fine of Rs 3 lakh on a stock broker Leo Financial Services for failing to maintain segregation of client's funds and misusing these funds.
 By such activity, Leo Financial Services has violated stock brokers' norm.
 In another order, the markets watchdog has levied a fine of Rs 2 lakh on Gretex Corporate Services and Rs 1 lakh on Vatsal Agarwaal for failing to obtain acquisition window for "offer to buy" on the internet-based book building system platform of the BSE before opening of the tendering period and thereby violated SAST (Substantial Acquisition of Shares and Takeover) norms. SP HRS

Sebi imposes Rs 10 lakh fine on Magnum, 22 others for cornering retail investors' shares in IPOs

Investors will soon find it easy to apply for Initial Public Offers (IPOs) as <keyword id="6357264" type="ORGANIZATION" weightage="80" keywordseo="capital-market">capital market</keyword> regulator, <keyword id="6355630" type="ORGANIZATION" weightage="80" keywordseo="Securities-and-Exchange-Board-of-India">Securities and Exchange Board of India</keyword> (<keyword id="35210" type="ORGANIZATION" weightage="80" keywordseo="sebi">SEBI</keyword>) is coming up with norms on <keyword id="2302538" type="UNKNOWN" weightage="60" keywordseo="electronic-form">electronic form</keyword> of IPOs. The e-IPOs will allow investors to subscribe to issues online without filling application forms and standing in queues, according to an ET report. 

	Moreover, the e-IPO system will reduce the total IPO investing process for investors to six days from the existing 12 days. 
 

	At present, there are various ways of submitting an application form for a public issue including applying with a cheque. This makes it difficult to reduce the post issue timelines from the 12 days from issue closure to listing and trading of shares. 
 The challenge with the current system is the time taken for clearing cheques of the retail investors. “The proposed e-IPO system is likely to do away with cheques and provide payments through NPCI (<keyword id="394949" type="CITY" weightage="80" keywordseo="National-Payments-Corporation">National Payments Corporation</keyword> of India), brokers besides the current ASBA (Application Support Blocked Amount) mechanism…," Haresh Hinduja, head-primary market, <keyword id="1869539" type="UNKNOWN" weightage="80" keywordseo="Link-Intime">Link Intime</keyword>, told the financial daily. 

	If an investor makes an application through the ASBA route, the applicant's bank account doesn't get debited until shares are allotted to him. But, the system still has some challenges.
 In 2008, the <keyword id="6378893" type="UNKNOWN" weightage="80" keywordseo="market-regulator">market regulator</keyword> had introduced the ASBA mechanism, which is mandatory for institutional and rich investors, while optional for retail investors. At present, 70% of the applications by retail investors are done through cheques. 

	In the current IPO process, implementing ASBA across the country is a challenge. For instance, if investors send ASBA forms of multiple banks, brokers find it tedious to verify all the forms with the banks and clear them within the IPO 12-day period.
 "The proposed e-IPO mechanism has allowed more entities such as depository participants and registrar and transfer agents to accept ASBA forms, besides replicating the OFS (offer for sale) model. The client will make bid application and the clearing corporation will block brokers funds. Thus the whole settlement will be through the secondary market route," CEO of <keyword id="66607" type="CITY" weightage="80" keywordseo="Kotak-securities">Kotak Securities</keyword> Kamlesh Rao told ET. 

	SEBI is also planning to reduce the size of the abridged prospectus further and make it available electronically. 
	 
	(Image: Indiatimes)

SEBI soon coming up with e-IPO norms

Markets regulator <keyword id="35210" type="General" weightage="20" keywordseo="Sebi" source="Orion">SEBI</keyword> on Tuesday said it has recovered pending dues worth Rs 6.57 crore from Sahara India Real Estate Corporation, its chief <keyword id="31933" type="General" weightage="80" keywordseo="subrata-roy" source="Orion">Subrata Roy</keyword>, and others in the case pertaining to flouting norms in issuance of optionally fully convertible debentures. "In view of the payment of the amount of Rs 6.57 crore due under the certificate, the said certificate is hereby completed," the Securities and Exchange Board of India (SEBI) said in its recovery order. The amount included interest and other charges. The regulator in December ordered the attachment of bank and demat accounts of Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation), Subrata Roy, <keyword id="1595961" type="General" weightage="50" keywordseo="ashok-roy-choudhary" source="Orion">Ashok Roy Choudhary</keyword>, Ravi Shanker Dubey and <keyword id="15891249" type="General" weightage="50" keywordseo="vandana-bharrgava" source="Orion">Vandana Bharrgava</keyword> to recover Rs 6.42 crore for violating regulatory norms in the issuance of OFCDs (Optionally Fully Convertible Debentures). This amount included interest, all costs, charges and expenses. The recovery proceedings were initiated against these entities after they failed to pay Rs 6 crore fine imposed on them by SEBI in June 2022. The case relates to the issuance of OFCDs by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation during 2008-09. The companies raised money through the public issue of securities by issuing OFCDs without following the various procedures intended to protect the interest of the investors, in respect of public issues, prescribed under the norms. According to SEBI, the subscription towards the OFCDs was solicited by the two companies from the general public throughout the country, without adequately informing them about the risks involved in the instruments. The issuance was allegedly done in contravention of the provisions of the SEBI's ICDR (Issue of Capital and Disclosure Requirements) Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices). SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/news/sky-gazers-in-for-celestial-treat-tonight-with-5-planets-forming-an-arc/articleshow/99063586.cms">Sky gazers in for celestial treat tonight with 5 planets forming an arc</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/electronic-manufacturing-services-firm-avalon-technologies-865-crore-ipo-to-open-on-april-3/articleshow/99063995.cms">Electronic manufacturing services firm Avalon Technologies’ ₹865 crore IPO to open on April 3</a>

SEBI recovers dues worth ₹6.57 crore from Sahara Group firms, Subrata Roy & others

Following a board meeting on 21 June, the Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword>) <a href="https://www.sebi.gov.in/media/press-releases/jun-2018/sebi-board-meeting_39324.html">unveiled a number of changes </a>in the country’s initial public offering (<keyword id="6354763" type="UNKNOWN" weightage="20" keywordseo="ipo">IPO</keyword>) rules as well as <keyword id="56788" type="ORGANIZATION" weightage="20" keywordseo="Governance">governance</keyword> norms. The move by the <keyword id="6544108" type="COMPANY" weightage="20" keywordseo="Capital-markets">capital markets</keyword> regulator was part of a concerted effort to make the IPO process easier and in alignment with the rules in other countries. The updated rules will be included in the recent Companies Act of 2014. They were based on the recommendations of panel of market experts led by Prithvi Haldea, the founder of the country’s first database on primary capital markets. Here are the major changes that SEBI made:- <ul><li>Companies looking to go public will only be required to provide financial accounts and <keyword id="49224" type="ENTERTAINMENT" weightage="20" keywordseo="Disclosure">disclosure</keyword>s for the three years prior to the issue, as opposed to five years, in line with international norms. The disclosure process will also be made less cumbersome as companies will only be required to submit their consolidated financial statements instead of both the standalone statements for group companies and the consolidated statements of the parent company. </li></ul><ul><li>The pricing band, or the envisioned share price, for a company’s rights offering can be made public two days prior to the IPO instead of five days earlier. This will help prevent wide deviations from the price band owing to market volatility.</li></ul><ul><li>The category of anchor investors, or institutional investors taking a large portion of shares in the offering, has been expanded to include mutual funds, insurers and venture capital funds in addition to investment banks. As a result, they can fill in for a shortfall in the contribution of a promoter if needed. Furthermore, to qualify as an anchor investor for the IPO of a small-and-medium-sized enterprises, a fund can invest a minimum of ₹20 million instead of ₹100 million.</li></ul>The regulator did, however, impose a few restrictions to prevent any fraud or tax evasion through IPOs. It expanded the definition of “promoter groups” to include immediate family members and relatives, and lowered the shareholding threshold for being categorised as a promoter group from 20% to 10%. Promoters are subject to higher regulatory scrutiny than public shareholders. Another strong year for IPOs? The new rules will likely encourage more companies to go public and tap capital markets for funds. In terms of IPOs, India had a solid 2017, with 38 offerings raising over ₹750 billion - nearly a threefold jump from 2016. However, the IPO market has been muted so far in 2018 in terms of deal value amid a deterioration in India’s macroeconomic fundamentals. While there have been 17 IPOs, they have only raised ₹221 billion. Ernst and Young, a consultancy, forecasts that the amount raised for the year will total around <a href="https://www.moneycontrol.com/news/business/ipo/ipos-to-raise-rs-35000-cr-in-2018-report-2614041.html">₹350 billion,</a> but the new rules could prove to be the boost the IPO market needs.

India’s market regulator has made the IPO process easier for companies

<ul><li><keyword id="7039692" type="UNKNOWN" weightage="20" keywordseo="ireda-chairman">IREDA Chairman</keyword> said that IPO is likely to happen before September, the earlier expected IPO was to be in June. </li><li>They had got the approval from SEBI for IPO in February 2018. </li><li>The Chairman added that they have plans to borrow ₹3,000 crore- ₹4,000 crore next year. </li></ul>The Indian Renewable Development Agency (IREDA), the government’s nodal agency to route subsidies in the renewable energy sector, was headed for an Initial Public Offering by June, 2019 but the same could now be delayed. The IREDA chairman and managing director KS Popli said that IPO is likely to be done before September. “We can only go upto 15% of our total equity, the approval we had was for 13.9 crore shares, whatever the rate comes. The amount will be between ₹700-750 crores,” Sharma said on February 7. The state-run IREDA, a non-banking financial company with RBI, had got the approval from <a href="https://economictimes.indiatimes.com/markets/ipos/fpos/bharat-dynamics-ireda-get-sebis-go-ahead-for-ipo/articleshow/63028335.cms">SEBI</a> for an IPO in February last year. The company had hoped to launch the IPO in March last year but had faced a delay because of <a href="https://www.bloombergquint.com/business/indian-renewable-energy-development-agency-ipo-delayed#gs.AlYPMf6W">compliance</a> issues with SEBI. The Chairman added that they have plans to borrow around ₹3,000 crore to ₹4,000 crore next year depending on the demand for funds from the purchasers. In <a href="https://www.financialexpress.com/market/ireda-scraps-proposed-green-bond-sale-amid-tepid-response/1426964/">December </a>2018, the agency had also done away with its proposed green bond sale because of not a great response from the market, even though it had hoped to raise ₹250 crore through them. Meanwhile, the IREDA had also run into trouble as Moody’s, the global credit rating agency, had warned investors regarding the former’s financials. The rating agency turned its outlook of IREDA from outstanding to negative stating “deterioration in IREDA’s financial performance, due to an increase in problem assets, as well as a significant decline in profitability, driven by certain changes in accounting norms" as reported by <a href="https://www.livemint.com/Companies/Y4sfNm4e7vzGsZCq5SdEhO/Moodys-cautions-investors-on-financials-of-PSU-lender-IREDA.html">Mint.</a> See Also: <a href="https://www.businessinsider.in/unemployment-indias-new-solar-power-projects-may-create-60000-jobs/articleshow/67878602.cms">New solar projects may create 60,000 jobs, says India's government</a> <a href="https://www.businessinsider.in/interim-budget-2019-the-state-of-indias-solar-power-is-a-matter-of-concern/articleshow/67622437.cms">India’s solar power producers are awaiting a ray of hope</a>

India's Renewable Energy Development Agency IPO may be delayed again

Sebi on Monday ordered the attachment of bank and demat accounts of <keyword id="31906" type="General" weightage="50" keywordseo="sahara-group" source="Orion">Sahara Group</keyword> firm, its chief <keyword id="31933" type="General" weightage="100" keywordseo="subrata-roy" source="Orion">Subrata Roy</keyword> and others to recover Rs 6.42 crore for violating regulatory norms in the issuance of optionally fully convertible debentures (OFCDs). The recovery proceedings against five entities -- <keyword id="486078" type="General" weightage="50" keywordseo="sahara-india-real-estate-corporation" source="Orion">Sahara India Real Estate Corporation</keyword> (now known as Sahara Commodity Services Corporation), Subrata Roy, <keyword id="1595961" type="General" weightage="80" keywordseo="ashok-roy-choudhary" source="Orion">Ashok Roy Choudhary</keyword>, Ravi Shanker <keyword id="20551" type="General" weightage="80" keywordseo="dubey" source="Orion">Dubey</keyword> and Vandana <keyword id="15888278" type="General" weightage="80" keywordseo="bharrgava" source="Orion">Bharrgava</keyword> -- for Rs 6.42 crore, includes interest, all costs, charges and expenses, the Securities and Exchange Board of India (Sebi) said in the attachment order. In its notice, Sebi asked all banks, depositories and mutual funds not to allow any debit from accounts of Sahara India Real Estate Corp, Subrata Roy, Ashok Roy Choudhary, Dubey and Bharrgava. However, credits have been permitted. Further, the market watchdog has directed all banks to attach all accounts, including lockers, of the defaulters. The regulator, in its order in June, levied a fine totalling Rs 6 crore on Sahara India Real Estate Corp, Subrata Roy, Ashok Roy Choudhary, Dubey and Bharrgava. The case relates to the issuance of OFCDs by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation during 2008-09. They raised money through the public issue of securities by issuing OFCDs without following the various procedures intended to protect the interest of the investors, in respect of public issues, prescribed under the norms, as per Sebi order. According to Sebi, the subscription towards the OFCDs was solicited by the two companies from the general public throughout the country, without adequately informing them about the risks involved in the instruments. The issuance was allegedly done in contravention of the provisions of the Sebi's ICDR (Issue of Capital and Disclosure Requirements) Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices). SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/capital-intensive-cyclical-and-value-stocks-to-continue-their-outperformance/articleshow/95659482.cms">Capital-intensive, cyclical and value stocks to continue their outperformance</a> <a href="https://www.businessinsider.in/thelife/personalities/news/top-five-billionaires-in-2022-elon-musk-gautam-adani-and-bill-gates/articleshow/96509847.cms">After a round of musical chairs, Musk, Gates and Adani are among 2022’s top 5 billionaires</a> <a href="https://www.businessinsider.in/stock-market/news/sah-polymers-ipo-to-open-on-dec-30-price-band-set-at-61-65-a-share/articleshow/96514593.cms">Sah Polymers IPO to open on Dec 30, price band set at ₹61-65 a share</a>

SEBI orders attachment of bank, demat accounts of Sahara group firm, Subrata Roy and others

New Delhi, Jan 15 () Two persons -- Dushyant Natwarlal Dalal and Puloma Dushyant Dalal -- have settled a probe by markets regulator Sebi after paying over Rs 76 lakh towards settlement charge for alleged involvement in the infamous IPO scam of 2003-05.
Securities and Exchange Board of India (Sebi) agreed to settle proposed adjudication proceedings in the case after it was approached by these persons with a settlement application.
They filed a settlement application proposing to settle, "without admitting the findings of fact and conclusions of law" through a settlement order, the pending adjudication proceedings initiated by the regulator for the alleged violation of the PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) norms as well as non-compliance with Sebi's direction.
Besides, they made the payment of over Rs 76.66 lakh towards settlement charges as suggested by the markets watchdog.
Consequently, the regulator, through a settlement order passed on Tuesday, said, "the enforcement proceedings for the alleged defaults...are settled".
"Sebi shall not initiate any enforcement action against the applicants for the said default," it added.
The regulator, which had conducted an investigation in the matter of the alleged irregularities during the initial public offering of various scrips, had observed certain irregularities in the transactions in the shares that were issued through the IPOs during the period 2003-05, before their listings on the stock exchanges.
The two had been accused of making unlawful gains by cornering shares of various companies meant for retail investors.
Sebi, through an ad interim exparte order in April, 2006, had barred Dalals, among other entities, from the capital markets till further directions. The directions were confirmed through Sebi orders passed in September 2008 and July 2009.
Subsequently the applicants preferred an appeal before the Securities Appellate Tribunal (SAT) and subsequent civil appeal and review petitions before the Supreme Court which finally got disposed of in August 2011.
The regulator in its order said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the persons are found to be untrue. SP BAL

IPO scam: 2 persons settle Sebi probe; pay Rs 76 lakh

New Delhi, Feb 12 () Markets regulator Sebi has asked NSE to divest its entire 37 per cent stake in Computer Age Management Services Ltd (CAMS) within a year. In a letter dated February 4, Sebi said that NSE's acquisition of shares in CAMS in 2013-14 was done without its approval. While announcing its December quarter results, the bourse said the regulator has directed it to divest the entire stake in CAMS. NSE, which currently owns a little over 37 per cent shareholding in CAMS, said it has already started the process of offloading the stake. The stake is held through one of the subsidiaries NSE Investments Ltd (NSEIL). In the letter to NSE, Sebi said the exchange should have obtained its prior permission for acquisition of stake in CAMS, an associate company. The regulator also directed the bourse to divest the stake within a period of one year along with certain restrictive directions in relation to the shareholding, NSE said quoting the letter. "The company is doing the needful in this regard," NSE said. Under the norms, Sebi's approval is required in case an exchange plans to pick stake in any new firm. In January, CAMS filed draft papers with Sebi for an initial public offering and market sources estimated the IPO size to be anywhere between Rs 1,500 and Rs 1,600 crore. The IPO would see sale of 1.22 crore equity shares through offer-for-sale by Great Terrain Investment, an affiliate of Warburg Pincus, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust. CAMS claims to be India's largest registrar and transfer agent with a market share of 69.4 per cent, based on mutual fund average assets under management, at the end of November 2019. Meanwhile, NSE also said that it received a showcause notice in October and a supplementary notice in December from Sebi. The notices were in relation to certain alleged irregularities in the appointment of Chief Strategic Advisor and his re-designation as Group Operating Officer and Advisor to Managing Director (MD) by the exchange's former managing MD and CEO. It also pertained to sharing of certain internal information pertaining to NSE with an alleged third party by a former MD and CEO. The exchange said it has sought inspection of records from Sebi in the matter and has also filed a settlement application. SP RAM

Sebi asks NSE to divest entire 37% stake in CAMS

The <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> has decided to relax the lock-in requirements for promoter shareholding in terms of initial public offerings (IPO) and further public offerings (<keyword id="46435" type="ORGANIZATION" weightage="20" keywordseo="FPO">FPO</keyword>). In its meeting on Friday, the SEBI board decided that the lock-in of promoters shareholding to the extent of minimum promoters contribution (20 per cent of post issue capital) shall be for a period of 18 months from the date of allotment in IPO/FPO instead of existing three years, if the object of the issue involves only offer for sale and if the object of the issue involves only raising of funds for other than for capital expenditure for a project. Further, the relaxation would be provided also in case of combined offering (fresh issue and offer for sale) if the object of the issue involves financing for other than capital expenditure for a project. In a statement, the SEBI said that in all the conditions, the promoter shareholding in excess of minimum promoter contribution shall be locked-in for a period of 6 months instead of existing 1 year. The lock-in of pre-IPO securities held by persons other than promoters shall be locked-in for a period of 6 months from the date of allotment in IPO instead of existing 1 year, it said. The period of holding of equity shares for Venture Capital Fund or Alternative Investment Fund (AIF) of category I or II or a <keyword id="5183194" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Venture-Capital-Investor">Foreign Venture Capital Investor</keyword> shall be reduced to 6 months from the date of their acquisition of such equity shares instead of existing 1 year. A SEBI consultation paper dated May 11, 2021 had provided detailed rationale for the reduction in lock-in period such as demonstration of skin in the game by promoters, existence of private equity firms and AIFs several years before proposing listing, much less greenfield financing through IPOs, and others. The board also decided to approve the certain measures to reduce the disclosure requirements at the time of IPO. The definition of promoter group shall be rationalised, in case where the promoter of the issuer company is a corporate body, to exclude companies having common financial investors. The disclosure requirements in the offer documents, in respect of group companies of the issuer company, shall be rationalised to, <keyword id="11806650" type="UNKNOWN" weightage="20" keywordseo="inter-alia">inter-alia</keyword>, exclude disclosure of financials of top 5 listed/unlisted group companies. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/indias-first-apple-store-delayed-due-to-covid-19/articleshow/85102306.cms">Launch of India’s first Apple store delayed due to Covid-19</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/apple-pay-and-google-pay-are-coming-to-coinbase-allowing-users-to-buy-cryptocurrencies/articleshow/85096650.cms">Coinbase now lets you purchase crypto via Apple Pay, Google Pay option to arrive soon as well</a>

You Searched For "SEBI ipo norms" and got 12 results

SEBI comes out with stringent norms to save IPO investors from losing big money

Bhakti Makwana

Sebi levies Rs 80 lakh fine on 16 entities for fraudulent trading in Mapro Industries' scrip

PTI

Sebi levies over Rs 12 cr fine on Tarini International, officials for flouting market norms

PTI

Sebi imposes Rs 10 lakh fine on Magnum, 22 others for cornering retail investors' shares in IPOs

PTI

SEBI soon coming up with e-IPO norms

BI India Bureau

SEBI recovers dues worth ₹6.57 crore from Sahara Group firms, Subrata Roy & others

PTI

India’s market regulator has made the IPO process easier for companies

Dilsher Dhillon

India's Renewable Energy Development Agency IPO may be delayed again

Sanchita Dash

SEBI orders attachment of bank, demat accounts of Sahara group firm, Subrata Roy and others

PTI

IPO scam: 2 persons settle Sebi probe; pay Rs 76 lakh

PTI

Sebi asks NSE to divest entire 37% stake in CAMS

PTI

IPO/FPO: SEBI eases lock-in norms for promoter shareholding

IANS

Popular Keywords

Buying Guides