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India to Launch Universal Central KYC 2.0 ID for Banking and Insurance in August

Chandani — Sat, 25 Jul 2026 10:37:50 +0000

The upgraded system introduces data confidence scoring and OTP-based consent, allowing consumers to access banking, insurance, and investment products without repeating document submissions.

Indian consumers will soon be able to access multiple financial services using a single, unified identity record. Starting in August 2026, commercial banks and insurance companies will roll out Central Know-Your-Customer 2.0 (CKYC 2.0), a revamped digital registry that eliminates the need to submit fresh identity documents whenever opening an account or purchasing a policy.

The initiative, jointly managed by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI), aims to modernize customer verification across the country’s financial landscape.

Mutual funds, wealth managers, and stock brokerages are expected to integrate into the network within four months following the initial rollout as regulators clear sector-specific guidelines.

FAQ

What is Central KYC 2.0 (CKYC 2.0)?

CKYC 2.0 is India’s upgraded centralized customer identification system that allows banks, insurers, and investment firms to retrieve verified customer data from a central database using OTP-based customer consent.

How does CKYC 2.0 differ from the previous CKYC system?

The original CKYC registry suffered from duplicate and outdated data, forcing institutions to request fresh documents. CKYC 2.0 introduces a confidence score that rates the accuracy and prior verification status of each record, giving financial entities the trust required to skip redundant paperwork.

When will mutual funds and stock brokers join CKYC 2.0?

While banks and insurance providers begin using CKYC 2.0 in August 2026, capital market entities such as mutual funds and brokerages are scheduled to onboard within four months as sector-specific regulatory requirements are finalized.

India’s Largest Public Issue: Jio Platforms Formally Files DRHP for Historic $4 Billion IPO

Chandani — Sat, 20 Jun 2026 16:33:02 +0000

Set to eclipse Hyundai India’s historic listing, the blockbuster public issue marks the Reliance Group’s first consumer-facing IPO in nearly two decades, led by the next-generation Ambani leadership.

Reliance Industries Ltd (RIL) has officially set the stage for a monumental shift on Dalal Street by filing its Draft Red Herring Prospectus (DRHP) with market regulator SEBI for its digital and telecom arm, Jio Platforms Limited (JPL). The highly anticipated initial public offering (IPO) seeks to raise an astronomical $4 billion (approximately ₹37,700 crore), instantly establishing it as the largest public market issue in Indian corporate history.

The mega-issue is configured to easily surpass the previous milestone established by Hyundai Motor India’s ₹27,859-crore public debut in late 2024. Addressing shareholders at the company’s annual meeting on June 19, Reliance Chairman Mukesh Ambani emphasized the global weight of the listing, noting that it will demonstrate India’s capacity to build technology institutions of unmatched international scale and valuation.

Transitioning Leadership and Strategic Debt Recalibration

The monumental public market offering is being structurally steered by the conglomerate’s next-generation leaders—Akash Ambani, Isha Ambani, and Anant Ambani—marking a core operational milestone in the group’s ongoing leadership succession strategy.

[Jio Platforms Total Debt: ₹71,529 Crore] ──► Allocates ₹27,500 Crore from IPO Net Proceeds
                                                           │
                                                           ▼
[Targeted Balance Sheet De-leveraging]    ──► Wipes Out Major Subsidiary High-Interest Borrowings

According to the filed draft documents, the capital structure changes are designed to clean up balance sheet liabilities rather than merely cash out early investors. Jio Platforms plans to issue up to 27 crore fresh equity shares, representing roughly 2.9% of its post-issue equity capital.

A massive chunk of the capital influx—up to ₹27,500 crore—is legally earmarked for the prepayment or full settlement of outstanding high-volume debt held by its primary telecom subsidiary, Reliance Jio Infocomm Ltd (RJIL). As of March 31, 2026, the digital conglomerate’s combined outstanding debt obligations sat at ₹71,529 crore.

Market Value Metrics and Subscriber Footprints

While investment banking powerhouses like Jefferies recently pegged individual asset valuations for the digital giant as high as $180 billion, the baseline institutional floor valuation targeted via the DRHP filing models sits comfortably at $137 billion.

                        [Jio Platforms Core Performance Dashboard]
                                            │
    ┌───────────────────────────────────────┼───────────────────────────────────────┐
    ▼                                       ▼                                       ▼
  [Subscribed Footprint]             [Fiscal Performance (FY26)]           [Operational Footprint]
 • Total Base: 524.4 Million users  • Gross Revenue: ₹1.47 Lakh Crore     • Active Workforce: 27,935
 • 5G Network: 268.5 Million users    (USD 15.5 Billion)                    (Reflects 21% YoY lean cuts)
 • JioAirFiber: 13 Million homes    • Net Profit: ₹30,000 Crore           • Tech Scope: AI, Cloud,
   broadband installations.           (USD 3.2 Billion)                     Enterprise Data networks.

The data reflects an incredibly lean, high-margin telecom and data ecosystem. For the fiscal year 2025-26, Jio Platforms generated a robust revenue of 正式 ₹1.47 lakh crore ($15.5 billion) alongside a net profit after tax of 正式 ₹30,000 crore ($3.2 billion).

Remarkably, the company unlocked these record profits while managing structural workforce efficiency cuts, reducing total headcounts by 21% year-on-year down to 27,935 employees. This lean operating profile demonstrates the highly automated, software-driven nature of its 5G network core.

Key Timelines, Pricing Bands, and Grey Market Projections

Because the draft filings have just been placed on the regulator’s desk for comprehensive review, exact timeline markers remain flexible:

Opening Dates & Price Bands: The exact subscription calendar windows and share purchase bands will be authorized immediately after SEBI issues its final observations. Financial analysts expect a formal launch window later in the current calendar year.
Grey Market Premium (GMP): Grey market tracking desks indicate that initial unlisted trading premiums will remain quiet until institutional lot allocations and retail share price floors are locked in.
Shareholding Framework: Reliance Industries currently retains a dominant 66.43% equity stake in the platform. The remaining equity sits with sovereign funds and tech icons who entered during the historic 2020 fundraising rounds, where Meta acquired 9.98% for ₹43,574 crore and Google secured 7.73% for ₹33,737 crore.

SECTION 4 — FAQ

Q1: What is the total expected size and valuation of the Jio Platforms IPO?

Jio Platforms plans to raise approximately $4 billion (₹37,700 crore) by issuing up to 27 crore fresh equity shares, making it the largest IPO in Indian market history. The target valuation of the digital services giant is positioned at approximately $137 billion.

Q2: How does Reliance plan to spend the massive capital raised from the IPO?

According to the DRHP, the primary objective is targeted corporate debt reduction. Reliance will channel up to ₹27,500 crore of the net proceeds directly toward the prepayment or full liquidation of outstanding borrowings held by its telecom subsidiary, Reliance Jio Infocomm Ltd (RJIL).

Q3: When will the official opening date, price band, and lot size be announced?

The exact subscription opening dates, per-share price bands, and retail lot specifications will be declared following the completion of SEBI’s regulatory review process. While dates aren’t finalized, market indicators point to a launch later this year.

Upcoming IPOs in 2026: Reliance Jio, Flipkart, and Zepto Lead the Pack

Chandani — Thu, 19 Feb 2026 15:57:34 +0000

So the Indian primary market is bracing for a massive 2026. Over 100 IPOs hit the mainboard last year. A fluke? Not likely. In fact, the current line-up looks even bigger. Still, investors are watching the “big three” most closely.

But here is the main event. Reliance Jio is prepping what could be India’s largest-ever listing. The goal? A first-half 2026 launch. And Mukesh Ambani’s team is just waiting on government rules before filing papers. The catch? The timeline depends on new SEBI notifications.

The rules changed recently. Now, firms over ₹1 lakh crore only need to dilute 2.75% of equity. Previously, the rule sat at 5%. So this helps “very large” players enter the market. Officials call it a relaxation. Critics call it a gift.

Still, Jio isn’t the only giant in the room. Flipkart recently got the nod to move its home base from Singapore to India. A 2026 public offer is the next logical step. And they even hired two new VPs to scale up supply chains. Success? We’ll see.

Then there is the fintech world. PhonePe already has SEBI’s green light to raise funds. Expect an updated filing soon. Plus, media reports suggest this offer will consist entirely of existing shares. No fresh capital here.

What about the “quick commerce” race? Zepto has already filed secret papers for its debut. OYO did the same. And both companies want a piece of the 2026 action. But the competition is getting fierce.

Worth noting: SBI Mutual Fund and boAt are also in the queue. SBI is still working on early docs. Meanwhile, boAt already has SEBI approval in hand. So the market is getting crowded. Good luck to the latecomers.

FAQs

When is the Reliance Jio IPO expected to launch?

So Jio Platforms is currently aiming for a listing in the first half of 2026. But the exact date depends on when the government issues final notifications regarding SEBI’s relaxed equity dilution rules.

What is the status of the Flipkart IPO?

Flipkart has received NCLT approval to shift its domicile from Singapore to India. This is a key step. And the company is now reportedly targeting a public offer in 2026.

Which other companies are planning IPOs in 2026?

In fact, several major players are ready. These include PhonePe, Zepto, SBI Mutual Fund, OYO, and boAt. Still, most are waiting for the right market window.

SEBI New Rules : Stock brokers got a big relief from the new rules of SEBI, the rules of the exchange became easier.

Pravesh Maurya — Sat, 11 Oct 2025 06:03:37 +0000

SEBI New Rules: SEBI has provided significant relief to stockbrokers. SEBI believes that stockbrokers’ mistakes should not be considered penalties. Now, they will no longer face hefty fines for minor infractions.

SEBI New Rules : The Securities and Exchange Board of India (SEBI) has made a major change for the stock market. SEBI has taken a step forward to ease compliance and as a major reform towards the market. SEBI has finalized several major reforms for stock brokers and stock exchanges.

SEBI has decided to rationalize and standardize the penalty framework applicable to stock brokers. Under the new rules, both the number and severity of penalties imposed on brokers will be reduced. SEBI has made this announcement to take a step forward towards Ease of Doing Business.

According to a report in Business Line, SEBI Chairman Tuhin Kant Pandey said that before formulating the new rules, the regulator held extensive discussions with stockbrokers and consulted them, following which the new rules were formulated. SEBI has decided that minor and minor mistakes by brokers will no longer be considered a penalty. Instead, they will be called “Financial Discrepancy.” This means that minor mistakes will no longer attract heavy penalties.

Penalties will be imposed in only 90 cases instead of 235.
According to media reports, a total of 235 existing penalty items were reviewed under SEBI’s new system. Of these, 40 penalties were completely eliminated, while 105 minor procedural lapses and technical errors have been classified as “Financial Disincentives.” After this, penalties will now apply only to 90 violations. SEBI has amended 36 penalties. In 7 cases, only a warning or advice will be issued for the first offense. In 6 cases, the maximum penalty limit has been set. No changes have been made in 29 cases. 12 new penalty provisions have been added.

Relief for Technical Glitches
Technical glitches in the market, such as order processing or system errors, often resulted in penalties for brokers. Under the new rules, penalties for such technical issues will be significantly reduced, thus reducing unnecessary pressure on brokers.

The term “penalty” will not be used everywhere.

SEBI states that the term “penalty” is often associated with “stigma” or “punishment,” which can impact a broker’s reputation. Therefore, in cases of technical or procedural errors, the term “financial disincentive” will now be used instead of “penalty.” SEBI has also clarified that penalties imposed by different exchanges for the same error will be avoided. According to SEBI’s system, only the lead exchange will take action in such cases, so that brokers do not face multiple penalties for the same mistake.

Income Tax Rules : If you withdraw this much cash in a day, you will never receive a notice. Know the Income Tax rules.

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SEBI enters the UPI arena, launches new system to prevent fraud, keep money safe

Pravesh Maurya — Fri, 03 Oct 2025 11:45:56 +0000

SEBI UPI Payment: Market regulator SEBI has launched two new initiatives to protect investors from fraud: Validated UPI Handles and SBI Check. SEBI claims this will make transactions easier and error-free. SEBI has developed this facility in collaboration with NPCI.

SEBI UPI Payment: If you invest in shares, mutual funds, or other securities, secure payments have become even easier. Market regulator Securities and Exchange Board of India (SEBI) has launched two special initiatives to protect investors from fraud and strengthen the payment system. SEBI claims this will make transactions easier and error-free. The market regulator has developed this facility in collaboration with NPCI. SEBI has launched two facilities called ‘Validated UPI Handles’ and ‘SEBI Check’.

According to media reports, SEBI, in collaboration with the National Payments Corporation of India (NPCI), has launched a unique @valid UPI ID. This handle will be issued to SEBI registered entities directly connected to investors. It will also include specific characters at the end depending on the category, such as ‘.brk’ for brokers and ‘.mf’ for mutual funds.

This will make it easier for investors to identify which entity is genuine and trustworthy. For example, a broker’s ID might be abc.brk@validhdfc, while a mutual fund’s UPI ID might be xyz.mf@validicici.

Confirmation will be provided by a unique symbol.

SEBI said in a statement that major brokers and all mutual funds, covering more than 90% of investors, have already adopted this @valid UPI handle. This feature will be provided as a new payment option for investors. It will work alongside existing methods like NEFT, RTGS, and IMPS.

This will give investors the freedom to choose their preferred transaction mode. Payments made using these IDs will display a unique “thumbprint inside a green triangle” symbol to confirm authenticity. The absence of this symbol will alert investors to the possibility of an unauthorized or fraudulent transaction.

Learn about SEBI Check:

Along with the new UPI system, SEBI has also launched SEBI Check, a digital verification tool that allows investors to independently verify the bank account details and UPI IDs of registered intermediaries. By entering the account number and IFSC code or @valid UPI ID, investors can verify authenticity through the SEBI Check platform or the Sarathi mobile app.

Special QR Code

In addition, SEBI has designed a special QR code with the same “thumbs-up” symbol in the center. This QR code is designed as follows. When investors scan it, it will ensure that the QR code is actually forwarding to a SEBI-registered intermediary. This code will facilitate error-free, fast, and reliable transactions. The thumbs-up icon in the QR code will indicate to the investor that the transaction is for a valid @valid handle. This makes the process of making payments using QR codes simple and secure.

Post Office Scheme : Depositing ₹4,00,000 in this Post Office scheme will earn you a guaranteed return of ₹1,79,613.52. Learn the full story.

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SEBI Ends Transaction Charges for Mutual Fund Distributors — New Rules Effective Immediately

Pravesh Maurya — Mon, 11 Aug 2025 07:04:03 +0000

The Securities and Exchange Board of India (SEBI) has completely abolished the transaction charges given to mutual fund distributors. This decision has been implemented with immediate effect, so that now asset management companies (AMCs) will not make such additional payments. According to PTI news, this decision has been taken after public consultation held in May 2023 and discussions with the industry held in June 2025.

What arrangement did SEBI give

According to market regulator SEBI, under the system in force till now, distributors were paid transaction charges for bringing investments of ₹ 10,000 or more. This rule was included in the master circular dated 27 June 2024. However, after the new review, SEBI found that distributors, who play the role of agents of the AMC, should be paid directly in the form of commission or fee, and not through transaction charges. On this basis, the relevant provisions of the master circular have now been completely removed.

Transparency will be promoted in the industry

SEBI believes that this change will promote transparency in the mutual fund industry and simplify the payment system of distributors. This circular has been issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 52(4A) of the SEBI (Mutual Funds) Regulations, 1996 with the objective of protecting the interests of investors, promoting development and regulating securities market.

Who are mutual fund distributors?

Mutual fund distributors are financial intermediaries or private individuals who help investors invest in and maintain mutual funds. They are often also called mutual fund agents. These distributors play an important role in the sale and distribution of mutual fund products to individual investors. According to Bajaj Finance, these agents are registered and regulated by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India i.e. AMFI.

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SEBI extended the time limit for giving suggestions on unclaimed amount, what is the new date?

Jyoti — Sat, 08 Mar 2025 09:01:19 +0000

Unclaimed Funds and Securities: The Securities and Exchange Board of India (SEBI) has extended the time limit for publicly giving suggestions on the new guidelines related to the settlement of such funds and securities.

These funds are lying with the brokers without any claim. A consultation paper was issued by SEBI on 11 February 2025 in this regard. Also, suggestions were sought from the people on this till 4 March 2025. Now this time limit has been extended by SEBI to 31 March 2025. The purpose of increasing the time limit is that more and more people can give their opinion on it.

Securities lying for more than 30 days can be called unclaimed

SEBI’s consultation paper said that if a customer’s money or securities are not deposited in his bank or demat account, or the customer is not contactable, then his account will be kept in ‘enquiry status’. In this situation, the funds with the customer will be considered unclaimed funds. If any securities remain with the trading member for more than 30 days, they will be called ‘unclaimed securities’.

Steps to be taken to find the customer

SEBI has directed that the trading member should make efforts to contact the customer. For this, letters, e-mails, phone calls or other available means will be used. The broker will have to send these funds to the Clearing Corporations. If the customer cannot be traced, SEBI has said that the broker should contact the following people:

Introducer of the client
Nominee of the client
Employer of the client
Any other relevant person whose information is available with the broker

However, the broker will have to ensure that he does not share the customer’s financial or investment related information with anyone.

The main purpose of the new rules

is to ensure that unclaimed funds and securities are not misused and that they are delivered to the right customers. SEBI believes that this step will increase transparency in the market and safety of investors.

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SEBI has issued guidelines for small PMS which have higher risk and higher returns

Jyoti — Fri, 28 Feb 2025 09:29:25 +0000

Market regulator SEBI has issued guidelines regarding small PMS i.e. Specialized Investment Funds. Under these guidelines, now every AMC will be able to launch 7 Specialized Investment Funds.

Out of these, 3 can be equity, two debt and two hybrid SIFs. They will have to invest at least Rs 10 lakh in these.

By reducing the investment limit to Rs 10 lakh in these small PMS, now retail investors will also be able to invest in them. This is a good step taken by SEBI. Due to this, we may see movement in AMC shares in the future. Fund managers will be able to take both long and short positions in F&O and can keep 25 percent of the position unhedged.

The fund manager will be able to take both long and short positions in F&O. 25% unhedged short position is possible in derivative portfolio. In this, daily redemption is possible in equity and weekly in debt. In hybrid, redemption is possible in two weeks. All closed SIF schemes will be listed. Listing will give investors EXIT option.

Let us tell you that in December, SEBI notified a new asset class between Portfolio Management (PMS) and Mutual Funds and called it ‘Specialized Investment Fund’ (SIF). According to SEBI, a framework has been issued for this new category of investment product, Specialized Investment Funds (SIF), with the aim of bridging the gap between Mutual Funds (MF) and Portfolio Management Services (PMS). This new framework is set to come into effect from April 1, 2025.

SEBI has directed industry body Association of Mutual Funds in India (AMFI) to issue guidelines in this regard by March 31, 2025, while stock exchanges, clearing corporations and depositories have been asked to take necessary steps and set up systems for the implementation of this circular.

SEBI has directed the industry body Association of Mutual Funds in India (AMFI) to issue guidelines in this regard by March 31, 2025.

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SEBI has implemented New rules for Companies managing Mutual Funds

Jyoti — Wed, 19 Feb 2025 06:34:52 +0000

Mutual Fund: There is a big update for mutual fund investors. The Securities and Exchange Board of India (SEBI) has changed the mutual fund rules and fixed the time limit for the use of the funds raised from the new fund offering (NFO).

Now the asset management companies (AMCs) will have to ensure that they use this amount within the stipulated time limit. Apart from this, disclosure of stress test has been made mandatory to increase transparency in mutual fund schemes. These new rules will come into effect from April 1, 2025.

Time limit set for use of NFO funds

The notification issued by SEBI states that the amount received from the New Fund Offer (NFO) should be used within the stipulated time limit. Usually this period is 30 days. If the amount is not used by a fund house within this period, then investors will get the option to exit the scheme without any exit fee.

Objective of the new SEBI rule

The purpose of this rule of SEBI is to ensure that fund houses do not collect funds from investors through NFO without planning. Invest it as soon as possible, so that investors can get returns as quickly as possible.

Transparency will increase in mutual fund schemes

SEBI has made stress testing mandatory for mutual fund schemes so that investors can easily understand how a fund will perform under different economic conditions. This will help investors to better assess the risk.

Investment will also be made from the salary of AMC employees

SEBI has decided to link the salaries of employees of asset management companies (AMCs) to mutual fund investments. Under the new rules, AMCs will have to invest 1% of their employees’ salaries in mutual fund units depending on their role.

Investors benefit from the new rules

Investing in NFO will be more secure.
Fund houses will be made more accountable.
Investors will be able to exit the scheme without any exit charges.
Stress test will make it possible to better assess the risk.

Important advice for investors

If you are investing in mutual funds or planning to invest in a new NFO, then keep these new rules in mind. Before investing in any scheme, understand the strategy of the fund house and take the right decision according to your financial goals.

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SEBI Launches “MITRA” To Help Investors Track Unclaimed Mutual Funds

Jyoti — Thu, 13 Feb 2025 10:03:30 +0000

MITRA Platform: Market regulator SEBI has launched a new digital platform ‘MITRA’. This platform will help investors track inactive or unclaimed mutual fund folios. This platform, called Mutual Fund Investment Tracing and Retrieval Assistant, aims to encourage investors to search for forgotten mutual fund investments and update KYC as per existing regulations.

Forgotten investments can be found out!

In a circular, SEBI said that this platform addresses the growing concern that investors, over time, lose track of their mutual fund investments, do not have contact information or are not aware of investments made in their name. SEBI said, ‘To address the concerns, the ‘Mitra’ platform has been designed by the RTA (Registrar and Transfer Agent) to provide investors with a searchable data of inactive and unclaimed mutual fund folios at the industry level.

It will also help in identifying someone else’s investment

\According to the circular, the MITRA platform will help investors to identify their forgotten investments or investments made by someone else. This platform will also encourage investors to get KYC done as per the current rules, which will reduce the number of folios without KYC. SEBI also said that the MITRA platform will also reduce the number of unclaimed mutual fund folios. A folio will be considered inactive if, despite having unit balance in it, no transaction has been done by the investor in the last ten years.

SEBI has changed the functioning of the Unit Holder Protection Committee (UHPC) under mutual fund regulations. Now the UHPC will review inactive folios as well as unclaimed dividends and redemptions and ensure that proactive steps are taken to reduce such cases. The market regulator has directed all shareholders, including AMCs, RTAs, RIAs, AMFIs and mutual fund distributors, to create awareness about this initiative among investors.

UPI daily transaction limit for capital market transactions to be raised from Rs 2 lakh to Rs 5 lakh: SEBI

Jyoti — Mon, 03 Feb 2025 11:33:34 +0000

SEBI: If you invest through UPI then there is good news for you. Market regulator Securities and Exchange Board of India (SEBI) has decided to increase the limit of transactions through UPI for capital market transactions. Now this limit will be increased from Rs 2 lakh to Rs 5 lakh.

However, this change is currently part of SEBI’s consultation paper and will be further evaluated in collaboration with NPCI. SEBI has cited the growing needs of investors and safe and efficient means of digital payment as the reason behind this change.

SEBI studied the transaction

Before taking this decision, SEBI studied the transactions of the clients of top brokers. This study found that 92.9% of the transactions are less than ₹ 1 lakh. At the same time, transactions between 1 lakh and 2 lakh rupees are 3.9%. Apart from this, transactions between 2 lakh and 3 lakh rupees are 1.3%.

On this basis, SEBI has proposed to fix the limit up to Rs 5 lakh. SEBI believes that this change will make the transaction process more smooth.

New changes can be easily implemented

In this consultation paper of SEBI, it was also told that NPCI (National Payments Corporation of India) continuously issues new UPI handles and their system is designed in such a way that it can easily adjust to the new changes.

Apart from this, NPCI had issued a circular on January 9, stating that from February 1, 2025, all transaction IDs should not contain special characters.

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SEBI took action against these four stock brokers, cancelled their registration, know the reason and full details

Jyoti — Fri, 31 Jan 2025 10:27:59 +0000

Market regulator Securities and Exchange Board of India (SEBI) has taken strong action against four stock brokers and has cancelled their registration. SEBI has taken action against these brokers after they failed to fulfill the registration requirements.

According to the news, these stock brokers were not members of any recognized stock exchange. According to the Economic Times news, the names of these brokers are – Single Window Securities, Sunness Capital India, GACM Technologies and Infotech Portfolio.

Brokers will be responsible for these things

According to the news, the market regulator said in an order that all four stock brokers will also be responsible for paying any outstanding fees, dues and interest payable to SEBI. The market regulator said that the main reason for cancelling their registration is to prevent them from misusing their SEBI registration certificate without becoming a member of a recognized stock exchange.

SEBI said that these entities no longer fulfil the conditions required for stock broker registration under the Broker Regulations, 1992, which provide that stock brokers should be members of recognised stock exchanges. SEBI followed due legal procedures under the Intermediaries Regulations, 2008 before cancelling the registration of the brokers. This ensured that the process was transparent and in accordance with regulatory requirements.

They were also fined

SEBI imposed a fine of Rs 5 lakh on Anand Rathi Shares and Stock Brokers Limited for regulatory violations. According to the order passed by SEBI, the company has been directed to pay the fine within 45 days. Also, Motilal Oswal Financial Services Limited has been fined Rs 7 lakh for violating the stock broker and depository participant rules. According to the order passed by SEBI, the company has been directed to pay the fine within 45 days. SEBI recently said that it has developed a web-based portal for submission of initial and final root cause analysis (RCA) reports by stock exchanges and other market infrastructure institutions (MIIs) regarding technical glitches.

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Investors got a big gift from SEBI! Platform will be launched for trading of shares before listing

Jyoti — Wed, 22 Jan 2025 05:23:22 +0000

Share Market: SEBI is thinking of bringing a system where investors will be allowed to trade shares in a regulated way after the closure of the IPO and till the listing period.

Share Market: Market regulator SEBI plans to launch a platform where shares can be bought or sold even before they are listed. Giving information about this in a program today, SEBI Chairperson Madhabi Puri Buch said, “Investors remain interested in shares from the time they are allotted to the time trading begins.

During this time, if investors want to trade, they should be given a chance to do so legally.” Trading in IPOs before listing After the shares are allotted to investors and before their listing on the stock exchange, trading continues in the grey market. Madhavi says that a platform should be created for investors interested in such trading, where they can continue it regularly instead of doing it informally. Regulated trading of IPO shares

He said in a conversation during the program that even though trading in the market has not started, but allotment means that investors have become entitled to those shares. At present, the shares are kept frozen in the demat account till listing, so that trading of unlisted shares can be stopped. Now under this new system, after the IPO shares are transferred to the demat account, their trading will be allowed till listing.

SEBI took this step because of this

SEBI has taken this step to crack down on irregular trading in the gray market. In the last few years, there has been a surge in the number of IPOs. The atmosphere of the stock market was also bustling at the beginning of the year. In the first two weeks of the year, many companies launched their IPOs, while there are many more companies in the queue.

What is the gray market?

Let us tell you that the gray market is an unofficial and unregulated market, where shares of companies bringing IPOs are bought and sold. Here trading takes place outside the rules of SEBI. In such a situation, SEBI is not responsible for any fraud with you in the grey market.

Salary Hike : Government employees of this state will get a bumper amount of money, salary will increase by so many thousand rupees from 8th pay commission

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Demat A/c And MF nominees New Rule: Major changes in the process of adding nominees

Jyoti — Mon, 20 Jan 2025 06:01:24 +0000

New Rules: SEBI has directed regulated entities such as mutual fund companies and depositories to give investors the option to submit nomination forms both online and offline.

There are going to be major changes in the process of adding nominees in mutual fund and demat accounts. Under this, now investors will be able to add 10 nominees to their account and each nomination will have to be verified through mobile OTP. SEBI has issued guidelines regarding this, which will come into effect from March 1, 2025.

SEBI has directed regulated entities such as mutual fund companies and depositories to give investors the option to submit nomination forms both online and offline. Along with this, the investor will get a receipt for every nomination submission, which will maintain transparency in the entire process.

Nomination will be mandatory for single mutual fund and demat account holders, but it has been made optional in joint accounts. Also, investors can change the nominee at any time. Apart from this, regulated entities will have to maintain the record of nominee and receipt for eight years after the transfer of the account or folio.

This way you will be able to verify

As per SEBI’s instructions, while adding a nominee in a mutual fund and demat account, the investor will get three options. As the first option, Aadhaar based e-sign or any other e-sign facility can be used. Apart from this, two factor authentication will have to be given, in which OTP will be sent to the investor’s registered mobile number and email address. The verification process will be completed after entering both the OTPs. As the third option, digital signature certificate can be used.

You can connect like this offline

The investor has to fill and sign the nominee form in front of a representative of the regulated entities. If the investor is incapacitated, the representative has to go to him personally and complete the process. Two witnesses are also required while filling the nomination form. Only the form filled in the correct manner will be valid. Investors can have the option to add, change or delete the nomination at any time.

Full details of all nominees will have to be given

As per the new system, mutual fund and demat account holders will now have to share their nominee’s personal identity information, which mainly includes information like PAN, driving license number or last four digits of Aadhaar. They will have to provide all the communication details of the nominee, which include home address, email and phone number.

Investors will get this option

1. It will be mandatory for every investor to nominate a person as a beneficiary to whom his securities will be transferred after his death.

2. The investor will have the option to nominate a person who would be authorised to transact on his behalf in case of the investor’s incapacity.

3. If there are more than one nominees, the investor can authorise any one of them to transact on his behalf.

4. SEBI has also clarified that the authorised person will not have the right to reject any nomination other than the authorised person.

Security measures were also taken

As per the new rules, whenever an investment is transferred to the nominees, they will act as trustees for the legal heirs of the investor.

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SEBI changed the rule related to stock market, this work will have to be completed in working day

Jyoti — Thu, 09 Jan 2025 05:10:22 +0000

New Delhi. Stock market regulator SEBI has revised the time limit for credit rating agencies by introducing compliance deadlines in ‘working days’ instead of ‘days’. The Securities and Exchange Board of India (SEBI) in a circular announced changes in the rules for CRAs aimed at standardizing the rating process and publishing protocols.

These changes have been made based on the recommendations of a working group on credit rating agencies. The working group had highlighted the challenges arising from the existing timelines, especially on non-working days.

“One of the recommendations of the CRA Working Group on Ease of Doing Business relates to amendment in the approach for specifying timelines from ‘days’ to ‘working days’,” Sebi said.

Under the revised rules, credit rating agencies are required to issue a press release on rating actions within seven working days of the occurrence of an event, which was earlier seven calendar days. Similarly, the timeline for review of ratings in cases of delay in debt servicing has been adjusted from two calendar days to two working days. Also, Sebi has extended the timeline for marking the rating as ‘issuer not cooperating’ if the non-default statement or ‘NDS’ is not submitted for three consecutive months to five working days instead of seven calendar days.

Let us tell you that the Securities Exchange Board of India issues new guidelines from time to time to maintain transparency in the stock market and protect the interests of investors. Apart from this, SEBI also takes action to impose fines on brokers or big companies carrying out illegal activities in the stock market. Recently, in the case of front running, SEBI has imposed fines on many big investors and brokers, and has also banned them from working in the stock market.

SEBI New Rule: SEBI has brought new rules regarding trading account, fund transfer will be easy, know full details

Jyoti — Tue, 07 Jan 2025 05:28:19 +0000

SEBI: The Securities and Exchange Board of India (SEBI) has decided to relax the settlement rules for client accounts that have been closed for 30 days.

According to the new SEBI rules, if a client has traded after 30 calendar days and before the date of the next monthly settlement period, then its settlement can be done on the dates notified by the exchange in the annual calendar.

“If the client trades after 30 days and before the subsequent dates of the monthly running account settlement cycle, the client’s account will be settled by the trading member as per the client’s quarterly/monthly settlement preference,” said a circular issued by Sebi on Monday.

What was the rule earlier?

As per a circular dated June 16, 2021, the accounts of clients who have not made any transactions in the last 30 days were required to be settled by the Trading Member (TM) within the next three working days.

This rule of SEBI was objected to by the Brokers’ Industry Standards Forum (ISF). The forum said that under the existing rule, trading members had to identify such clients on a daily basis, which led to daily settlement of funds. This led to procedural complexities and wastage of time.

SEBI has banned more than 15,000 sites and many financial influencers. Details Here

Jyoti — Mon, 30 Dec 2024 10:35:04 +0000

If you also earn from the stock market on YouTube and Instagram, then this news can prove to be useful for you. Actually, nowadays every second person on social media calls himself an influencer.

There are many people who call themselves influencers on social media and keep giving stock market tips and stock recommendations. If you also give stock recommendations on social media, then you need to be careful. Because SEBI has taken action against such people.

In fact, in the year 2024, action has been taken against many such people who have misled people about the stock market and given tips. One of these influencers has also been recently taken action against. Not only this, SEBI has also banned more than 15000 websites that create similar content.

SEBI took action

According to reports of Economics Times, SEBI has taken the biggest action this year against those who mislead and give wrong information in the name of investment in the stock market. SEBI has banned more than 15,000 sites and many financial influencers. These people are accused of giving wrong information to people using social media. This not only misleads people but also causes huge losses to them. Let us tell you, investment in the stock market is subject to market risks. If you want to make any investment, then you must first take the advice of your financial advisor.

Baap of the Charts

In its action this year, SEBI has banned finfluencers Ravindra Balu Bharti and Nasiruddin Ansari. Ansari was active on social media platform X (earlier Twitter) under the name ‘Baap of Chart’, where he often advised people to buy and sell shares. When the matter reached SEBI, SEBI ordered Ansari and his associates to open an escrow account and deposit Rs 17 crore. SEBI also said that this money will be used to return the money of those investors who have lost money due to their advice. Apart from this, a fine of Rs 20 lakh has also been imposed on Ansari.

Latest News:-

The post SEBI has banned more than 15,000 sites and many financial influencers. Details Here first appeared on Rightsofemployees.com.

Mutual Fund Rules: Big change in Mutual Fund Rules, Investors will Get Relief From Penalty

Jyoti — Fri, 27 Dec 2024 06:28:29 +0000

The Securities and Exchange Board of India (SEBI) has made a big change in the rules for mutual fund investors. Now investors will be able to close their Systematic Investment Plan (SIP) or stop its installment just three days before the payment date.

After receiving the application, the mutual fund company will have to complete this process within two days (T+2). This will help investors avoid penalties and other financial troubles. The new rule has been implemented.

Earlier, this was the process

Earlier, investors had to apply 10 working days in advance to cancel SIP. It was difficult to correctly estimate the status of the bank account in such a long time, due to which the installment often bounced. Due to this, investors had to pay additional charges like ECS or mandate return charges. SEBI has simplified the cancellation process to solve this problem. The new rule will apply to both online and offline SIPs.

Think of the new process as

Suppose an investor’s SIP installment is on the 10th of every month. In some month, there is not enough money in his account till the 7th. In such a situation, he can request to stop or close the SIP on the 7th. The mutual fund company has to cancel it before the 10th. In the meantime, no penalty will be imposed on the investor.

Instructions to mutual fund companies

1. Companies will now have to cancel auto-debit or ECS instructions within two working days.

2. The investor needs to be informed in case of missing the SIP installment for the first time.

3. The investor must be informed that if he misses paying the installment for three consecutive times then the SIP will be stopped completely.

4. Information regarding cancellation of SIP will have to be given to the investor by sending a message.

5. SIP cancellation option must be made available on all platforms.

Big relief for investors

This decision of SEBI is being considered a big step towards transparency in the mutual fund industry and strengthening the rights of investors. Experts say that this new rule will be a big benefit for SIP investors. Now they will not have to fear fines and they will be able to have better control over their investments. This step will not only increase the convenience of investors but will also help them in financial planning.

Stock Market: Now general investors will also get this special facility of trading, SEBI will launch it soon

Jyoti — Mon, 16 Dec 2024 09:28:02 +0000

Market regulator SEBI has proposed to introduce the facility of algorithmic trading (algo trading) for retail investors. Currently, this facility is available only to institutional investors.

This technology makes trading faster, cheaper and more transparent through computer programs. By using algo trading, investors can buy and sell quickly.

This makes it easier to transact in the stock market and SEBI says that this facility will be provided to retail investors with safety and proper regulations. SEBI had sought suggestions from the public on this proposal till December 3. After this, the final rules will be issued. According to a previous study by SEBI, 97% of FPI (Foreign Portfolio Investors) and 96% of proprietary traders’ profits in Futures and Options (F&O) trade in FY24 came from algo trading.

According to the proposal given by SEBI, the facility of algo trading will be provided to retail investors through stock brokers. For this, the broker will first have to take permission from the stock exchange. Every transaction in the trade will be tagged with a unique identifier given by the stock exchange, so that the trade can be monitored. The broker will have to take permission from the exchange for any change in the algorithm system.

API will be used

API (Application Programming Interface-API) will be used for algo trading. Brokers will play a key role in this process, while algo providers or fintech companies will act as their agents. Providers providing algo trading facilities will have to register with the stock exchange.

According to a report in Business Standard, stock exchanges, in collaboration with SEBI, will decide on the responsibilities of brokers and algorithm providers. To speed up the registration of certain types of algorithms (such as execution algorithms), a turnaround time (TAT) will be fixed.

Ajay Garg, Director and CEO, SMC Global Securities Limited, says that SEBI’s proposal for algorithmic trading for retail investors is the need of the hour. He said that under the new framework, retail investors will be able to use approved algorithms only from registered brokers. This step will protect the interests of investors.

SIP Cancellation New Rule: SEBI has reduced the time limit for cancelling SIP from 10 days to just two days

Jyoti — Fri, 13 Dec 2024 07:01:49 +0000

SEBI has reduced the time limit for cancelling SIP from 10 days to just two days. Now investors can request to stop SIP only two days in advance. Earlier this process had to be started 10 days in advance, due to which many investors did not get a chance to stop their SIP on time.

SEBI has taken a relief decision for those investing in mutual funds through Systematic Investment Plan (SIP). Now you will not have to wait for 10 working days to stop SIP. Under the new rule, now SIP will be stopped in just two days on your request. SEBI has made the new rule mandatory for mutual fund companies and it has been implemented from December 1, 2024.

What is the new rule?

SEBI has reduced the time limit for cancelling SIP from 10 days to just two days. Now investors can request to stop SIP only two days in advance. Earlier this process had to be started 10 days in advance, due to which many investors did not get a chance to stop their SIP on time.

For example, if your SIP EMI deduction date is 15th and you do not have sufficient funds in your account till 12th, you can now request to stop the SIP on 12th. The fund manager has to cancel it before 15th and no penalty will be charged in the meantime.

New rule came into effect from December 1, 2024

This new rule of SEBI has come into effect from December 1, 2024. Under this, all mutual fund companies and fund managers have been instructed to fulfill the request to stop SIP within two days. This rule will apply to both online and offline investments.

How will you get the benefit?

Earlier, investors had to request to stop SIP 10 days in advance. But it was difficult to estimate the status of the bank account so many days in advance. In such a situation, if there was no money in the account, the monthly installment would bounce and a penalty would have to be paid. Now, due to the two-day time limit, investors will not face this problem.

Big relief for investors

This new rule will give a big benefit to SIP investors. Now they will not have to fear penalty and they will be able to have better control over their investments. This step will not only increase the convenience of investors but will also help them in financial planning. This decision of SEBI is considered a big step towards transparency in the mutual fund industry and strengthening the rights of investors.

SEBI notified new rules related to nomination in Demat and Mutual fund accounts. Check Details

Jyoti — Fri, 06 Dec 2024 05:39:06 +0000

SEBI has notified new rules related to nomination in demat and mutual fund accounts and other securities matters. Under this, now if the investor is unable or incapacitated, the nominee will be able to take financial decisions on his behalf.

He will get full authority to operate demat and mutual fund accounts. The new rules have come into effect from November 28.

For this, SEBI has amended the ‘Depository and Participants’ regulations. It has been provided that if an investor or shareholder or property owner becomes incapable of taking decisions, then the nominee can take decisions in his place. Some security conditions have also been fixed for this.

Apart from this, the process of transferring property to nominees has also been simplified so that minimum paperwork is required. The new rules are aimed at making things easier for investors and applying a uniform standard for ‘nomination’ facilities in the Indian securities market.

Investors will get this option

1. It will be mandatory for every participant or investor to nominate a person as a beneficiary to whom his securities will be transferred after his death.

Authorised to transact on his behalf in case of the investor’s incapacity.

3. If there are more than one nominees, the investor can Authorise any one of them to transact on his behalf.

Nominees will be able to take decisions here: Demat accounts, mutual funds, ETFs and bond schemes and other securities

Security measures were also taken

As per the new rules, whenever an investment is transferred to the nominees, they will act as trustees for the legal heirs of the investor. The nominees will have to provide documents like PAN, passport number or Aadhaar.

Cases of joint ownership

In cases of joint ownership, the owners may collectively nominate a person who will be entitled to the securities after the death of all the joint participants. Further, the depository and the participants will not be held liable for any action taken on the basis of a nomination provided by the concerned individual.

Relief has been received here too

1. Investors are allowed to nominate up to 10 persons in demat accounts and mutual funds. Earlier this number was limited to three.

2. Nominees can be changed as many times as desired. Additionally, if a minor has been nominated, there will also be an option to declare a guardian for him.

3. Facility will also be available to operate trading accounts of family members from a single mobile number. Till now only one account can be operated from one number.

4. SEBI has urged all existing investors and unit holders to nominate for securities transfer.

SEBI is considering a plan to change the rules of UPSI, it will affect the companies

Jyoti — Mon, 11 Nov 2024 06:29:37 +0000

The market regulator is considering expanding unpublished price sensitive information to include fund raising plans, restructuring plans and one time bank settlements.

SEBI is considering making changes in some rules to increase transparency in the market. The market regulator is considering expanding unpublished price sensitive information by including fund raising plans, restructuring plans and one-time bank settlements. This has come to light in a consultancy paper published by SEBI on Sunday.

What has been said in the paper

The paper states that shareholder, joint venture and family settlement agreements that may affect management and control in the firm should fall under the definition of price sensitive or UPSI. Additionally, major developments in corporate insolvency proceedings, such as the initiation or approval of resolution plans by the tribunal, should be disclosed as potentially price sensitive.

Raising funds will also be considered price sensitive

Apart from this, forensic audit initiated or completed for incorrect information of the finance of any issue of fund will be considered price sensitive. SEBI’s intention behind the proposed change in the definition of unpublished price sensitive information is to increase transparency. Let us tell you, in this paper, SEBI has said that the matter of raising funds will also be considered price sensitive.

What are the rules now?

At present, the process of raising funds is not considered price sensitive. But now there is a plan to include restructuring plans, one-time bank settlement and other financial restructuring plans in UPSI (Unpublished Price Sensitive Information). SEBI has said in its proposal that if the regulator or judicial institutions impose penalty, fine etc. against the company or its officer, then it will also be given the status of price sensitive.

SEBI allows mutual funds to invest in foreign funds with conditions

Jyoti — Tue, 05 Nov 2024 04:30:23 +0000

New Delhi: The Securities and Exchange Board of India (Sebi) on Monday allowed mutual fund companies (MFs) to invest in foreign mutual funds or unit trusts that invest a certain portion of their assets in Indian securities, subject to the condition that the total investment of such foreign funds in Indian securities does not exceed 25 per cent of their net assets.

The Securities and Exchange Board of India said in a circular that the move is aimed at simplifying investments in foreign MFs/unit trusts, bringing transparency in the method of investment and enabling MFs to diversify their foreign investments. SEBI said the new framework will be implemented with immediate effect.

This condition has to be followed

According to the circular, mutual fund schemes have to ensure that the contributions of all investors in the foreign MF / unit trust are included in a single investment vehicle without any associate entity. The fund of the foreign MF / unit trust should be such that there are no separate portfolios to ensure that all investors have equal and proportionate rights in the fund.

This has to be kept in mind that the market regulator has banned advisory agreements between Indian mutual funds and underlying foreign mutual funds to prevent conflict of interests. SEBI said in its circular, “Indian mutual fund schemes can also invest in foreign MFs / unit trusts that have investments in Indian securities.

The only condition for this is that the total investment of these foreign MFs / unit trusts in Indian securities should not exceed 25 percent of their assets.” If this limit is violated after investment, then a period of 6 months will be given to balance the portfolio with foreign funds, but during this time no new investment will be made in it.

SEBI introduces liquidity window facility for investors in debt securities

Jyoti — Thu, 17 Oct 2024 06:02:20 +0000

SEBI has introduced a liquidity window facility for investors in debt securities through the stock exchange mechanism.

With the help of this facility, investors holding listed debt securities can sell these securities back to the issuer by exercising the put option on specific dates. This ensures liquidity. SEBI said in a circular that the liquidity window facility will be available from November 1. This will prove to be very useful for investors, especially retail investors, and can help them increase their investment in such debt securities.

SEBI found that corporate bonds are considered illiquid because many institutional investors hold them till maturity, leading to low trading activity. To improve liquidity, especially for retail investors, SEBI has introduced a framework under which issuers can provide liquidity window facility.

The decision will depend on the issuer

Under this, issuers can choose whether to provide this facility for debt securities at the time of issue. This applies to new issuances of debt securities through public offers or private placements. SEBI said that this facility requires board approval and monitoring by the Stakeholders Relationship Committee (SRC) or equivalent board-level committee. It should be transparent, objective and non-discriminatory towards eligible investors.

This facility will be available for one year after its release

The liquidity window facility will be available for one year after issuance. Securities under the scheme cannot be reissued. Sebi said issuers may restrict eligibility to all investors or only to retail investors, provided they hold the securities in demat form. At least 10% of the issue size should be allocated to the liquidity window, with sub-limits restricting the number of securities that can be offered per window. If demand exceeds the limit, acceptance will be proportionate.

The window will remain open for 3 working days

The liquidity window will be open for 3 working days and may operate on a monthly or quarterly basis, with notifications sent via SMS or WhatsApp at the beginning of the financial year. Investors can exercise the put option by blocking securities in their demat accounts during trading hours, with the option to modify or withdraw bids. Settlement will take place within 4 working days. The payment will be made one day after the window closes. Issuers cannot offer a discount of more than 100-basis points on valuation plus accrued interest.

What are the instructions for issuers

Issuers are required to dispose of the securities purchased within 45 days, either selling them on the exchanges or liquidating them. Any sale will offset the utilisation limit for future windows. The circular also states that a report on the utilisation of the window should be submitted to the stock exchanges within 3 working days. Issuers should disclose ISIN-wise details, such as outstanding amounts, coupon rates and schedules, on their websites and update stakeholders within 24 hours of the change.

SEBI changed the rules for nomination in mutual funds and demat accounts

Jyoti — Tue, 01 Oct 2024 11:46:49 +0000

SEBI changed the rules for nomination in mutual funds and demat accounts in the board meeting on September 30. Earlier, only 3 people were allowed to be nominated. Now an investor can appoint up to 10 nominees. The nominee has also been allowed to take decisions on behalf of incapacitated investors.

SEBI has made changes in the nomination rules for mutual funds and demat accounts. This decision was taken in the meeting of SEBI’s board on 30 September. Now investors are allowed to make up to 10 nominees in mutual funds and demat accounts. The question is, aren’t 10 nominees too many? Experts say that this can complicate things. Some experts are calling it impractical. They believe that this can make things difficult instead of making things easier.

Too many nominees can cause problems

Rajat Dutta, founder of Inheritance Needs Services, said that if one or say 10 nominees do not cooperate in implementing the terms of the will after the death of the investor, then it can create problems. SEBI has also said that the nominees of MF accounts or demat accounts will be the trustees and not the last owner. The Supreme Court had said this in its decision in a recent case. According to SEBI, the legal heir of the deceased will not get any legal rights.

Nominee has the right to take decisions on behalf of the incapacitated investor

SEBI has allowed the nominee to take decisions on behalf of incapacitated investors. However, some terms and conditions have been attached to it. Experts say that this is not the right step and it will not stand the scrutiny of the court. More information is still awaited in this regard. The role of a nominee begins when the investor dies. After the death of the investor, the bank, mutual fund or depository participant gives the ownership of the asset to the nominee, because as a trustee his role is that of a beneficiary.

Fraud cases may increase due to new rules

After getting the right to the assets, the nominee is expected to pass on the assets to the rightful heir as per the succession law or as per the will. Dutt says that SEBI has given the nominee the right to take decisions on behalf of the incapacitated investor, which can lead to fraud. This step is not in the interest of Indians who live abroad. There are many Indians living abroad whose parents or siblings live in India.

Signatures of joint holders are not required to add the name of the nominee

The rules for adding or changing the name of the nominee in the mutual fund folio have now become easier. For this, the signatures of the joint holders will no longer be required. This has increased the risk of fraud. Suppose an elderly woman lives alone in a city and the responsibility of taking care of her is on the caregiver. Her children live in another city. In such a situation, the caregiver can add his name as a nominee and withdraw the money.

Big News For Investors, NSE and BSE revise transaction fees effective from October 1. Details here

Jyoti — Sat, 28 Sep 2024 06:29:41 +0000

The move comes after the Securities and Exchange Board of India (SEBI) made it mandatory to have a uniform fee structure for all members of market infrastructure institutions, including stock exchanges.

If you invest in the stock market, then this news is useful for you. Actually, the country’s leading stock exchanges – BSE and NSE – on Friday revised their transaction charges for cash and future and option deals. The stock exchanges said in separate circulars that the revised rates will come into effect from October 1. This step was taken after the Securities and Exchange Board of India (SEBI) made a uniform fee structure mandatory for all members of the institutions associated with the market infrastructure, including the stock market.

Rs 3,250 per crore premium

BSE has revised the transaction fee for Sensex and Bankex option contracts in equity futures and options to Rs 3,250 per crore premium traded. However, transaction fee for other contracts in the equity futures and options category will remain unchanged. SEBI had issued a circular in July regarding the charges for market infrastructure institutions (MIIs). It said MIIs should have a uniform fee structure for all members, replacing the current volume-based system of trading.

Listing time for debt securities reduced

Let us tell you that recently SEBI decided to reduce the time limit for listing of public issue of debt securities from six working days to three working days. The purpose of this initiative is to speed up access to funds. The new time limit will be optional for the first year and mandatory thereafter.

.SEBI said- In case of public issue of debt securities and non-convertible redeemable preference shares (NCRPS), the listing time has been increased to the day of transaction plus three working days (T plus three), which is currently the day of transaction plus six days (T plus six). This step will enable faster access to funds to the issuers of debt securities.

Now you can start SIP from Rs 250, know which company is launching this facility

Jyoti — Thu, 12 Sep 2024 07:27:13 +0000

New Delhi: Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch has said that disclosures or information made by a listed company on one stock exchange will be automatically ‘uploaded’ on another exchange.

The move comes after SEBI recently proposed sweeping changes in the disclosures made by listed companies as well as listing requirements. The proposal is based on the recommendations of a committee headed by former SEBI whole-time member S. K. Mohanty. Speaking at a CII event on Monday, SEBI chief Buch said a single ‘filing’ on the exchange will become a reality very soon.

He said that under the proposed changes, the information (filing) given to one exchange will be automatically shared on the other exchange. Apart from this, Buch said that investors will soon be able to start investing in SIP from Rs 250 per month. Aditya Birla Sun Line Mutual Fund is preparing to launch the first such SIP in the country. So far SIPs with a minimum of Rs 500 per month are available. Buch refused to comment on Real Estate Investment Trust (REIT) and said that rules for simplification of such units are in place.

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What did you say on reet

She said, ‘If I say even one word on REIT, I will be accused of conflict of interest.’ Buch has said this at a time when US short selling company Hindenburg Research has raised questions about possible conflict of interest related to her and private equity firm Blackstone in a report. Hindenburg has claimed in the report that Buch and her husband Dhawal Buch had made undeclared investments in obscure foreign funds in Bermuda and Mauritius. These are the same funds that Vinod Adani allegedly used to embezzle money and increase the share prices of the group’s companies. Vinod Adani is the elder brother of Adani Group chairman Gautam Adani.

New Rules: New rules announced for buyers and sellers of shares

Jyoti — Sat, 31 Aug 2024 05:28:12 +0000

Market regulator SEBI has proposed that a facility like Application Supported by Blocked Amount (ASBA) should be made mandatory for qualified stock brokers (QSBs) to provide it to their clients in the secondary market.

In a discussion paper released recently, the capital market regulator proposed to provide UPI block mechanism phase-wise in the cash segment for individual and Hindu Undivided Family (HUF) clients of QSBs. The UPI block mechanism is a system in which investors can trade in the secondary markets by blocking funds in their bank account instead of transferring them in advance to their brokerage firm.

The money will be debited from the bank account only when the shares are credited to the investor’s demat account. This mechanism is already available in the secondary markets on an optional basis. It is similar to the ASBA mechanism, which applicants use while bidding for shares in an IPO. This has helped in significantly reducing the overall timeline of the IPO process. It will help in reducing

many types of risks

SEBI believes that this system will help protect investors’ funds from any possible misuse. “Thus, the process of blocking funds and trading in the secondary market through the UPI facility mitigates the risk of misuse of the clients’ assets or loss of their assets due to default by the brokers,” SEBI said. Another advantage from the investor’s point of view will be that the blocked funds will continue to earn interest in the individual’s savings account. The policy of brokers will be reduced.

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The SEBI paper said, “The analysis shows that clients hold an average daily cash balance of about ₹ 65,276 crore with their TMs in the cash segment. Assuming an average interest rate of 4% on this cash, the total annual interest for collaterals held in the cash segment would be approximately ₹2,611 crore.” SEBI said that this move will reduce the float income of brokerage firms from such balances and they may have to adjust brokerage rates to compensate for such loss of implicit income.

SEBI said that the overall result of this will be a more transparent and efficient ecosystem mechanism of transaction costs for investors in competitive scenarios. According to SEBI, this system will help in reducing the incidence of misuse of client cash collateral held by members and not given to the clearing corporation.

Along with this, it will also help in reducing the risk associated with the wrongful withdrawal of client cash collateral by members from the clearing corporation and the risk of non-settlement of payments to clients by trading members. Beta version of trading through block mechanism in secondary markets January 1, 2024 was launched for individuals and HUFs, which is applicable only to the cash segment. SEBI believes that “this system may become a popular way for retail investors (individuals and HUFs) to trade in the securities markets, provided the TMs are willing to adopt this system.”

SEBI Imposed a Fine of 11 Lakhs on This company for not Following the Rules

Jyoti — Thu, 22 Aug 2024 05:59:54 +0000

New Delhi . The Securities and Exchange Board of India (SEBI) on Wednesday imposed a fine of Rs 11 lakh on brokerage company IIFL Securities for violating stock broker rules and other regulatory norms.

SEBI had inspected the company to see whether IIFL Securities Limited (IIFL) meets the necessary rules to be a brokerage company.

The inspection was conducted for the period from April to July, 2022. Subsequently, the regulator issued a show cause notice to IIFL Securities on April 15, 2024. SEBI said in its 35-page order that the noticee (IIFL Securities) has accepted the allegations made in the show cause notice regarding the monthly and quarterly settlement of client funds and securities, stating that there were some technical deficiencies in it.

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SEBI’s adjudicating officer Barnali Mukherjee said in the order, “I find that the circular specifically instructed the brokers to settle the accounts and issue the statement on time. However, the noticee failed to do so.”

Though the noticee has now taken corrective action, it is found that it has failed to dispose of funds and securities on monthly/quarterly basis.

SEBI changes mutual fund rules to curb front-running, insider trading

Pravesh Maurya — Thu, 08 Aug 2024 06:01:34 +0000

New Delhi. The Securities and Exchange Board of India (SEBI) has amended the mutual fund norms. Under the amendment, asset management companies (AMCs) will have to establish an institutional mechanism to identify and prevent ‘front-running’ and insider trading in securities.

Apart from this, the management of the AMC will be responsible for ensuring the efficiency of the institutional mechanism. SEBI has also directed the AMC to create a ‘whistle-blower’ mechanism.

SEBI’s decision comes after passing two orders in connection with ‘front-running’ cases involving Axis AMC and Life Insurance Corporation of India (LIC). SEBI said in a gazette notification dated August 1, “Asset management companies shall establish institutional mechanisms specified by the board to identify and prevent potential market abuses including ‘front-running’ and insider trading in securities.”

What is front running?

‘Front-running’ is the trading of shares or any other financial asset by a broker who has insider information about a future transaction that is going to affect the price of that transaction to a great extent. Similarly, insider trading also takes place in which some influential people profit from the leak of inside news of the company and influence the investors.

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Now who will be responsible for this?

According to the notification issued by SEBI, the Chief Executive Officer (CEO) or Managing Director or any other person of equivalent rank and the Chief Compliance Officer of the asset management company will be responsible and accountable for the implementation of such institutional mechanism. SEBI said, the asset management company will establish and implement a ‘whistle-blower’ policy. This will be a confidential mechanism for employees, directors, trustees and other stakeholders to raise concerns about suspected fraud, improper or unethical behavior, violation of regulatory or legal requirement or conduct of business. Steps will also be taken to ensure adequate protection of the whistle-blower.

When will the new rule be implemented?

For all these changes, the Securities and Exchange Board of India has amended the mutual fund rules. These changes will come into effect from November 1. After this, like the stock market, the rules for mutual funds will also become strict. This means that after the new rule comes, the responsibility and accountability of asset management companies will increase further.

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New rules for insider trading will be implemented from November 1, the mutual fund industry will change

Pravesh Maurya — Tue, 30 Jul 2024 05:41:33 +0000

Capital Market Regulator SEBI has announced the date of major changes in the Mutual Funds industry. To promote transparency in mutual funds, new insider trading rules will come into effect from November 1.

Under these new rules, the functioning of asset management companies will be improved and special attention will be paid to employees who hold sensitive information. Apart from this, these employees will also have to sign the necessary agreement.

A confidentiality agreement will need to be signed

According to market experts, under the new rules, mutual fund companies will have to maintain transparency regarding employees who have access to price sensitive information. Such employees will be considered as designated persons. They will be identified as designated persons. Under the new rules, a list of employees and other individuals who have access to sensitive information will have to be maintained. All of them will have to sign a confidentiality agreement. This will help SEBI in preventing insider trading.

There was a delay in implementing the rules due to opposition from the industry

SEBI issued a notification on July 26 saying that the new insider trading rules will come into effect from November 1, 2024. Under the new rules, asset management companies will have to review their internal controls from time to time. SEBI had issued a consultation paper on buying and selling in mutual fund companies regarding insider trading in July 2022. But, according to market experts, the implementation of the new rules has been delayed due to opposition from the industry.

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AMC, trustees and their relatives will have to disclose their holdings

According to the SEBI notification, under the new insider trading rules, those holding price sensitive information will no longer be allowed to trade mutual fund units. This information can affect the net asset value of the scheme as well as the interests of the unit holders. Insider trading rules will not allow people to make unethical profits.

Under the new rule, the AMC will have to disclose the details of its holdings in the mutual fund scheme by the AMC, trustees and their relatives on the stock exchange. Also, information about the transaction made by the nominee will also have to be given within two days.

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SEBI took a big action on Vijay Mallya, imposed this ban for 3 years

Pravesh Maurya — Sat, 27 Jul 2024 09:32:00 +0000

The Securities and Exchange Board of India (SEBI) has given a big blow to fugitive liquor businessman Vijay Mallya. SEBI has banned Mallya from associating with any listed company for 3 years.

This step has been taken in the case in which Mallya used foreign bank accounts to illegally send money to the Indian securities market. Mallya has been living in Britain since March 2016 and the Indian government is trying to extradite him to face charges of fraud related to Kingfisher Airlines.

Wrong investment in Indian market

SEBI’s investigation found that Vijay Mallya used foreign institutional investors (FIIs) Matterhorn Ventures to secretly trade shares of his group companies – Herbertson Limited and United Spirits Limited (USL) from January 2006 to March 2008. For this, he sent funds through various foreign accounts and resorted to various foreign entities to hide his real identity.

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Mallya hid his identity

SEBI’s order said that Matterhorn Ventures was wrongly listed as a non-promoter public shareholder in Herbertson while its 9.98 per cent shareholding was in the promoter category. SEBI Chief General Manager Anita Anup said that Mallya traded in the Indian securities market through the FIIs route while concealing his identity and disregarding regulatory norms.

Fraud and deceptive work reports

Anup said that this act of Mallya was not only fraudulent and deceptive, but also a threat to the integrity of the securities market. In this situation, SEBI has barred Vijay Mallya from accessing the securities market and banned him from joining any listed firm for three years.

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SEBI’s major update, Mutual fund and demat accounts without nominee will not be frozen

Pravesh Maurya — Tue, 11 Jun 2024 04:46:44 +0000

Market regulator SEBI said in a circular issued on June 10 that it will not seize the mutual fund portfolios or demat accounts of those investors who have not provided information related to their nominees.

There is a relief news for mutual fund investors and demat account holders. The Securities and Exchange Board of India (SEBI) said in a circular issued on June 10 that it will not freeze the mutual fund portfolio or demat accounts of those investors who have not provided information related to their nominees.

Apart from this, investors holding securities in physical form will now be eligible to receive any payment such as dividend, interest or redemption of securities. Along with this, investors will be entitled to file a complaint or request any service from the Registrar and Transfer Agent (RTA) even if they do not choose the ‘nomination option’.

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Earlier, SEBI had set a deadline of June 30 for all existing individual mutual fund holders to provide nominee details or opt out of nomination. Non-compliance with the rule could have resulted in a ban on withdrawals from their accounts. However, SEBI said in a circular issued on Monday that keeping in mind the ease of compliance and convenience of investors, it has been decided not to ban mutual fund accounts with demat accounts for not providing ‘nomination option’ for existing investors or unit holders.

The system will continue for new investors.

The market regulator said that payments that were currently stopped due to listed companies or RTAs not providing the ‘nomination option’ can now be settled. Along with this, SEBI clarified that the system of mandatorily providing the ‘nomination option’ for demat account/mutual fund folio to all new investors and mutual fund unit holders will continue.

SEBI issued format

The regulator has asked the depository participant, AMC or RTA to encourage demat account holders or mutual fund unit holders to update the ‘nomination option’ by sending messages on a fortnightly basis through email and SMS. To update the regulator, the name of the nominee, the nominee’s shareholding and relationship with the applicant will have to be disclosed. SEBI has also issued a format for providing the option of nomination and exit from nomination in demat accounts and MF folios.

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SEBI proposes raising limit to hold securities in basic demat account to Rs 10 lakh

Pravesh Maurya — Thu, 06 Jun 2024 07:35:05 +0000

Capital market regulator SEBI is planning to change the rules related to Demat Account. SEBI has planned to increase the securities deposit limit in Basic Services Demat Account (BSDA). SEBI has issued a consultation paper to increase the securities limit in this account. Let us know in detail in this report.

Let us tell you that Basic Services Demat Account was started in the year 2012 to promote financial inclusion. At present, other securities worth Rs 2 lakh can be kept in Basic Services Demat Account. Now SEBI is planning to increase this limit to Rs 10 lakh.

What is Basic Demat Account?

Basic Services Demat Account is a type of Demat account. This account is for retail investors. In this account, the investor cannot invest in stocks, bonds, ETFs, mutual funds etc. Apart from this, the maintenance cost of this account is also low.

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SEBI has issued a consultation paper to increase the securities limit in this account. SEBI has asked in the consultation paper whether the limit of Basic Services Demat Account should be increased or not.

Why does SEBI want to increase the limit?

According to SEBI’s consultation paper, in the last 10 years, the growth of stock exchanges and the participation of retail investors in the securities market has increased. In view of the increasing participation of retail investors, SEBI is planning to increase the limit of demat account. Apart from this, SEBI is also considering maintenance charges.

Basic Services is planning to charge Rs 100 on securities worth Rs 4 lakh to Rs 10 lakh in demat account. Currently, no charge is levied by the brokerage firm on debt securities up to Rs 1 lakh and non-debt securities up to Rs 50,000. SEBI is also proposing to increase the limit of debt securities to Rs 4 lakh.

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SEBI Launches Saathi 2.0 Personal Finance App for Investors

Pravesh Maurya — Thu, 06 Jun 2024 05:35:45 +0000

Capital market regulator Sebi on Monday launched a mobile app on personal finance called ‘Saa₹thi 2.0’ for investors. It has several tools to explain complex financial things in a simple way.

Sebi said in a statement, “The updated ‘Saa₹thi’ app explains complex financial things in a very easy way. Along with this, it also has a very user-friendly interface.”

The app includes financial calculators. It has modules that inform and explain the KYC process, mutual funds, ETFs, buying and selling of shares on stock exchanges, investor grievance redressal systems and mechanisms and online dispute resolution (ODR) platform. Additionally, the app is designed to assist investors in their personal finance planning. It also has a series of videos.

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Young investors will get convenience

Speaking at the launch, Anant Narayan G, Whole Time Member, SEBI said, “In today’s times, social media sometimes provides biased or misleading information. In such a situation, there is a vital need for an unbiased, objective and reliable source of investment information. The Sarathi app serves this purpose by empowering investors with reliable and necessary information in the securities market. It can be especially useful for young investors who are about to start their financial journey.

Available on Android and iOS AppStore

Ananth Narayan added, “The content within the app is dynamic, helping us keep pace with rapidly evolving market conditions. We actively seek public suggestions to further enhance and improve the Saathi app, to ensure it continues to serve our investors.” The ‘Saathi’ app is available for download on Google Play Store and iOS AppStore.

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SEBI New Rule: New Internet-Based Trading rule comes into effect from today

Pravesh Maurya — Thu, 30 May 2024 12:06:03 +0000

SEBI New Rule The Securities and Exchange Board of India (SEBI) has made changes in the Internet-Based Trading rules. New rules for Internet-based trading have come into effect from today. According to the new rule, now the stock exchanges will give approval to the stock broker for internet-based trading within 7 days. Earlier its time limit was 30 days. Let us know in detail in this report.

The Securities and Exchange Board of India ( SEBI ) has made changes in the Internet-Based Trading rules. According to SEBI ‘s rules, now a stock broker will get approval for internet-based trading within 7 days. Earlier, a stock broker used to get approval within 30 days.

Why did SEBI take this decision

SEBI has taken this decision so that stock brokers can trade easily. Under the internet-based trading rule, now the broker will have to take permission from the stock exchange to use the internet-based trading rule service. The broker will have to apply for permission.

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SEBI has issued a circular for internet-based trading rules. According to the circular, the stock exchanges had to inform the brokers about their decision within 30 days, but now they have to inform the brokers within 7 days.

Also, SEBI has done away with the existing requirement of periodic confirmation of internet-based trading (IBT) data by stock brokers before it is published by the stock exchanges. Now, the stock exchanges will publish IBT data based on the details of IBT terminals provided by the brokers.

The decision has been taken after SEBI received a request from the Industry Standards Forum (ISF) of stock brokers regarding internet-based trading. SEBI said that the new guidelines will come into force with immediate effect.

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SEBI launches audio visual representation of public issues disclosures

Pravesh Maurya — Sat, 25 May 2024 10:59:00 +0000

New Delhi. If you invest in Initial Public Offer i.e. IPO, then there is news of work for you. Actually, the country’s market regulator Securities and Exchange Board of India i.e.

SEBI has decided on Friday (May 24) to present the disclosure of companies in the offer documents for public issue in the form of audio-visual (AV).

This move will help investors easily understand the key features of an offering. Such AVs will be prepared for all major IPOs and made available to the public. Initially, it will be in English and Hindi.

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The market regulator said in a circular that this framework will apply to all DRHPs filed with SEBI on a voluntary basis on or after July 1 and mandatorily from October 1. SEBI said that it has been decided that audio-visual formats will also be made available for easy understanding of the disclosures made in DRHP, RHP and price band advertisement for public issue.

SEBI issued guideline regarding real time data sharing

SEBI on Friday issued guidelines for sharing real time price data of shares of listed companies with third parties including various platforms. SEBI had found that virtual transaction services or fantasy games on certain online gaming platforms, apps, websites are based on real time share price fluctuations of listed companies. The market regulator said in a circular that certain special rules apply to prevent misuse or unauthorised use of real time price data.

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Mutual Fund investors, KYC can be done even without Aadhar-PAN link

Pravesh Maurya — Thu, 23 May 2024 11:16:43 +0000

Mutual Fund investor: If you invest in mutual funds then this is important news for you. Market regulator SEBI has given great relief to mutual fund investors by relaxing KYC rules. Even if your Aadhaar-PAN is not linked, you can still invest in mutual funds.

Let us tell you that according to the rule applicable from April 1, 2024, the KYC of investors was put on hold if Aadhaar-PAN was not linked, due to which investors could neither invest in any mutual fund nor redeem their investment.

KYC can be done even without Aadhar-PAN link

SEBI has given big relief to such investors. According to the new rule, even without linking Aadhaar-PAN, investors can get their KYC done with OVD i.e. officially valid documents like Aadhaar, PAN card, Voter ID, passport and driving license. The KYC status of such an investor will be KYC registered.

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Investment is possible only in the fund for which KYC is done.

An investor with KYC registered status can deal only with that fund for which KYC has been done and not with any other new fund. At the same time, if an investor has linked Aadhaar-PAN and got his KYC done, then the status of that investor will be KYC Validated. Such investors can invest in all mutual funds.

KYC registered investors will have to get KYC done again to invest in any new fund. If KYC status is on hold, then the investor’s email, mobile number, address are not verified. Investors with KYC on hold will not be able to deal in mutual funds nor invest nor will they get the facility of redemption.

Where can you check KYC Status?

If any investor wants to check the status, he can check KYC status on www.CVLKRA.com
. By going to KYC inquiry page, investors can check KYC status with their PAN number. On this page, investors can also see their KYC registered authorities i.e. KRA such as CAMS, Karvy etc.

Relief given in the circular of May 14

If the investor’s KYC is not validated or registered, then he can do KYC by visiting the website of his KRA with officially valid documents. In the circular dated May 14, SEBI has given big relief to mutual fund investors.

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SEBI changed the rules of M-Cap, will be implemented from 31 December 2024

Pravesh Maurya — Wed, 22 May 2024 05:33:09 +0000

The Securities and Exchange Board of India ( SEBI ) has issued a notification for companies listed in the stock market. According to this notification, SEBI has changed the rules of Listing Obligations and Disclosure Requirements (LODR).

According to the new rule, now the market cap of companies will be calculated over a period of six months instead of daily. The market fluctuates daily. In such a situation, the market cap of companies changes every day.

Market experts believe that the market capitalization of a listed entity fluctuates on a daily basis depending on the market dynamics and hence, the average of the market capitalization figures over a reasonable period (six months) of the listed entity. Will reflect market size more accurately.

The changes came following the recommendation of an expert committee headed by former whole-time member of SEBI SK Mohanty to boost ease of doing business. The purpose of this amendment of SEBI is to specify a defined period for calculating the average market capitalization.

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The Securities and Exchange Board of India had issued a notification regarding this on May 17. According to this notification, the new rule will come into effect from December 31, 2024. Now the compliance ranking will be based on average market capitalization from July 1 to December 31, with December 31 as the cut-off date.

SEBI said regarding amendment in LODR norms

Every stock exchange will prepare a list at the end of this year i.e. 31 December 2024. Those companies will be included in this list, in which the institutions will be ranked on the basis of average market capitalization from July 1 to December 31. If the ranking of a company changes every three years, then the new provision will not apply to that company. This will provide relief to institutions experiencing fluctuations in market capitalization.

Further, SEBI has given relaxation in respect of filling of vacancies of Key Managerial Personnel (KMP) and has extended the time limit from the existing three months to six months in some cases.

In cases where the listed entity is required to obtain approval of regulatory, government or statutory authorities to fill such vacancies, these should be filled by the listed entity as soon as possible and in any case not earlier than six months from the date of the vacancy.

As per current LODR rules a listed company is required to inform the stock exchanges about financial results, board meetings for certain resolutions like share buyback, fundraising etc. within 2-11 working days.

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SEBI KYC: Relief to crores of investors, SEBI simplified the rules related to KYC

Pravesh Maurya — Wed, 15 May 2024 05:04:04 +0000

SEBI KYC Norms: SEBI had tightened the KYC rules, due to which more than 1 crore mutual fund accounts were held after April 1…

Market regulator SEBI has given big relief to crores of investors. SEBI has made the recently implemented changes in KYC rules somewhat easier. This is going to benefit more than one crore investors whose mutual accounts were put on hold.

SEBI gave this relaxation in KYC
After the relaxation given by SEBI, now KRA i.e. KYC registration agencies can verify information like PAN, name, address, email, mobile number from the official database. SEBI says that if this information is found in the order then it will be considered as a validated record.

Changes came into effect from April 1
Earlier, SEBI had tightened the KYC rules for mutual fund investors. Due to the changes made by the regulator, many investors were required to get KYC done again. These rules came into effect from April 1, 2024, and the mutual fund accounts of investors who did not conduct fresh KYC were put on hold.

So many accounts were put on hold
It was being told that around 1.3 crore mutual fund accounts were held due to incomplete KYC. KYC registration agencies had said that investors used documents in the initial KYC process which are no longer officially valid or did not complete KYC through Aadhaar, due to which their accounts have been put on hold. However, such investors are expected to get relief from the latest exemption given by SEBI.

Such investors will get relief
Holding a mutual fund account was causing more problems to those investors who are NRIs or live in any other country outside India. He was not able to withdraw from his mutual fund account because his account was put on hold. Now after verification from KRA, KYC can be considered complete and the hold on the account can be removed.

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Demat/MF acc holders: SEBI extended last date for nominee declaration in mutual fund and demat accounts

Pravesh Maurya — Thu, 28 Dec 2023 07:42:06 +0000

SEBI, the stock market regulating body, on Wednesday extended the deadline for adding nominees for demat and mutual fund account holders till June 30 next year. Till now the deadline for nominating a beneficiary or opting out by submitting the declaration was kept till December 31. This move by the Securities and Exchange Board of India (SEBI) is aimed at helping investors secure their assets and hand them over to their legal heirs.

In view of the applications received from market participants, SEBI said in a circular that for ease of compliance and convenience of investors, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024. The decision has been taken.

Along with this, SEBI asked asset management companies (AMCs), depository participants and registrars and transfer agents (RTAs) to encourage demat account holders and mutual fund unit holders to enroll or exit by sending emails or SMS every fortnight. Is. Let us tell you that earlier the last date for nomination was 30th September.

Email or SMS advisory:

Sebi has also asked asset management companies (AMCs), depository participants and registrars and transfer agents (RTAs) to send emails or SMS to demat account holders and mutual fund unit holders every fortnight asking them to enroll or opt out. Have asked to encourage about.

SEBI’s action

Meanwhile, capital markets regulator SEBI has imposed a fine of over Rs 4 crore on five former executives of Federated Electric & Engineering Limited (FEEL) in a case of irregularities and manipulation in the company’s accounts and banned them from the securities market for two years. Is done.

Along with this, he has been banned for two years from holding the post of director or key managerial personnel in any listed company or any registered intermediary. The persons on whom SEBI has imposed fine include Akhtar Aziz Siddiqui, Chief Finance Officer cum Whole-time Director, Member of Accounts Committee and in-charge of Finance and Accounts matters of FEEL, Whole-time Director and Director for FY 2007-08 to FY 2016-17. The signatories to FEEL’s financial statements include Sham Sundar Dhawan.

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When is the demat account frozen?

Pravesh Maurya — Sat, 23 Dec 2023 10:46:35 +0000

The year 2023 is about to end. Before the end of this year, there are some tasks which you have to complete at any cost, otherwise you may get into trouble. One of these important tasks is to add nominee in the demat account.

If you have a demat account and do not have nominee added in it, then definitely complete this work by 31st December, otherwise your account may get frozen.

When is Demat account frozen?

Demat account can be frozen in two cases, regulatory freeze or voluntary freeze. Regulatory freeze occurs when you violate certain guidelines of the Securities and Exchange Board of India (SEBI).

The account has been inactive for three years.
If nomination is not completed by December 31, 2023, the account debit will be frozen.
If mandatory documents like Aadhar Card have not been submitted.
Voluntary freezing is also allowed if you are unable to access your demat account due to travel or other reasons. Therefore, you can ask the broker to temporarily freeze your demat account until further notice.

Security Exchange Board of India (SEBI) has given time till December 31 to add nominee to demat account and mutual fund account. You do not need to go anywhere to add a nominee in the demat account, you can do this work very easily even while sitting at home.

Add nominee like this

To add a nominee in the demat account, you will first have to log in to the account.
After this, go to My Profile section and go to Nominee Details.
Now select Add Nominee or Opt Out option.
After this, fill the nominee details like name, PAN number, address etc. and upload the ID proof.
Next, enter the nominee’s share in ‘percentage’.
Then enter the Aadhaar number and e-sign the document through OTP.
After this, document verification will take place and the nominee will be added in 24-48 hours.

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Demat and MF Holders! Your demat account, MFs could get frozen if you don’t do this

Pravesh Maurya — Fri, 22 Dec 2023 08:07:07 +0000

Mutual fund Account Holder: If you also trade in the share market, then definitely complete this work in 11 days. Demat account holders and mutual fund account holders will have to complete their work by 31 December 2023.

If you do not do this, then you will not be able to buy or sell shares in the stock market in the new year. It is mandatory for demat account holders and mutual account holders to file nomination by December 31, 2023.

It is mandatory to file Demat nominee

Investors cannot buy or sell shares on BSE and NSE until they update the nominee. The Securities and Exchange Board of India (SEBI) has made it mandatory for all personal demat account holders to file a nominee. Investors have to complete this work by December 30, 2023. Investors have 11 days left to do this work. If you do not file the nomination by December 31, your account will be frozen. This means that until the nominee is updated, you will not be able to trade in the stock market.

SEBI has extended the deadline for filing nominee several times.

SEBI has extended the deadline for filing nomination multiple times for all existing trading and demat account holders. The process and deadline for filing the nomination was initially fixed as March 31, 2022, but till now this deadline has been extended several times. Earlier its deadline was 30 September 2023 which was extended to 31 December 2023.

MF and Demat account holders have to do this work by 31st December

The reason for this move by SEBI is to help stock market and mutual fund investors secure their assets and pass them on to their legal heirs. It is also mandatory for mutual fund investors to file their nominee by December 31, 2023. Market regulator SEBI has also said that the order to file nominee applies to both new and existing investors.

Under SEBI rules, new investors have to either nominate their securities at the time of opening trading and demat accounts or formally opt out of the nomination through a declaration form. That is, through this declaration form you will tell that you do not want to make anyone a nominee.

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New facility started for those investing money in share market

Pravesh Maurya — Fri, 24 Nov 2023 05:36:58 +0000

Securities and Exchange Board of India (SEBI) has launched a new platform to protect trading members and brokers from asset loss. Its name is IRRA.

This platform will act as a safety net in case of any technical glitch. This will help trading members to cancel an order at a time when they are unable to do so on the main platform and disaster recovery site due to technical glitches, resulting in losses.

This platform has been created jointly by BSE, NSE, NCDEX, MCX and MSE. It was launched on Monday by SEBI Chairperson Madhabi Puri Buch. While launching it, he also explained how this platform will work. He said that this platform will give investors an opportunity to close their open positions or cancel any order.

This platform will help in case of any technical glitch or such unknown situation when it is difficult to do any work related to the order on the main and recovery site. He said that it has been developed to reduce the risk of investors. He made it clear that this platform cannot be used for taking new orders or positions. This will be used only to cancel the order.

Why was this needed?

As dependence on technology for trading is increasing, its risks are also increasing. Many times such situations arise where the main and recovery platforms stop working due to some unknown fault. In such a situation, investors are not able to make any changes related to their trade. The problem becomes bigger when there is a period of sharp fluctuations in the market and an investor wants to close his position or cancel the order. In such a situation he has to suffer financial loss.

‘There should never be a need to use’

Madhuri Puri Butch said that the hope is that there should never be a need to use this platform. He said, “Think of it as a safety net for an artist walking on a thin rope in the air. He hopes that he never needs it, but it is also necessary to have it.”

How will this work?

During any technical glitch, an investor may demand to start it. Exchanges will activate it after initial investigation. Exchanges themselves can also start this. If they feel that there has been a technical glitch, there are other errors in the order or people are complaining about trading on social media.

As soon as this service is activated, it will download all the trades of that investor. After this, these trades will be sent to the investor through SMS or email. Along with this, a link will also be sent to him to access IRRA. Once the investor gets permission to enter IRRA, he can cancel his pending orders from here. With IRRA, this work can be done for any exchange and any segment.

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SEBI has changed the rules related to PAN card, big relief to these investors

Pravesh Maurya — Thu, 23 Nov 2023 10:07:50 +0000

SEBI had said that it is necessary to stop issue registration and ‘Share Transfer Agents’ (RTAs) in ‘folios’ in which any of such documents will not be available on or after October 1, 2023.

The Securities and Exchange Board of India (SEBI), the body that regulates the stock market, has simplified the rules for those holding securities in paper form. Under this, the provision of banning securities without PAN, KYC (Know Your Customer) details and ‘nomination’ has been removed.

SEBI said in a circular that the purpose of this initiative is to simplify the rules. This step will come into effect with immediate effect. This decision has been taken after receiving suggestions from Registrar Association of India and investors.

Signature was mandatory

Under the rules, it was mandatory for all those holding securities in physical form in listed companies to provide signature for PAN, nomination, contact details, bank account details and the respective ‘folio’ number.

SEBI had in May said that ‘folios’ in which any of such documents will not be available on or after October 1, 2023, are required to stop issue registration and ‘share transfer agents’ (RTAs). While amending the circular issued by the regulator in May, SEBI said that the word ‘freeze’ has been removed.

What did SEBI say

SEBI said, “On the basis of the report received from the Registrar Association of India, suggestions received from investors and ban on shares under the Benami Transactions (Prohibition) Act, 1988 and or Anti-Money Laundering Act and related matters.” …to reduce administrative challenges, it has been decided to abolish the above provision.

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Good news for investors! SEBI changed rules to make trading easier

Pravesh Maurya — Wed, 22 Nov 2023 11:08:44 +0000

Securities and Exchange Board of India i.e. SEBI keeps a close watch on the stock market. Many rules are implemented to prevent any investor from committing any kind of fraud. Recently SEBI has issued a circular. As per this circular, PAN KYC details and enrollment have been abolished. Read the full news

In a relief to holders of physical shares, market regulator SEBI has done away with the requirement of freezing these without PAN, KYC details and nomination. Securities and Exchange Board of India ( SEBI ) issued a circular regarding this. According to this circular, this step has been taken with the aim of simplifying the rules and it will come into effect immediately.

This decision has been taken after receiving feedback from Registrar Association of India and investors. Under the rule, it was mandatory for all holders of physical shares of listed companies to furnish PAN, nomination, contact details, bank account details and specimen signatures for their respective folio numbers.

SEBI had said in May that folios whose details are not available after October 1, 2023, will be frozen by the Registrar of Issue and Share Transfer Agents (RTAs). Amending the circular issued in May, SEBI said that the reference to the word freeze has been removed.

Why did SEBI change the rules?

SEBI said that they have taken this decision to make share trading easier. After the change in this rule, the unexpected challenges faced by investors will be reduced to a great extent. When folios were frozen, investors had to face many problems. SEBI has taken this decision after suggestions received from investors.

SEBI had issued a circular in May this year. In this circular he had removed the reference ‘freezing/frozen’. The decision was taken after consultation and feedback from the Registrar Association of India and investors.

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Sahara Refund: New update on the money of Sahara investors, check immediately

Pravesh Maurya — Mon, 20 Nov 2023 06:22:01 +0000

SEBI: Money of lakhs of people is stuck in Sahara Group. Recently, Sahara Group chief Subrata Roy has also passed away.

After this, there are many questions in the minds of investors whether they will get their stuck money back or not? Meanwhile, a new report has come out.

It has been claimed in this report that transfer of Sahara’s money to the Consolidated Fund is being considered. The Economic Times report claims that consideration is being given to transferring the unclaimed funds of the Sahara-SEBI refund account to the consolidated fund. At the same time, legal advice is also being taken from the government on this matter.

In such a situation, if any investor makes a claim regarding the fund in future, the money can be returned to him. According to the information, more than Rs 25 thousand crores were recovered from Sahara Group and after this only about Rs 138 crores were transferred till March 31. The remaining money was deposited in a government bank.

In the year 2012, the Supreme Court had upheld the decision of SEBI in which SEBI had ordered Sahara Group to return the investors’ money with interest. Along with this, the Supreme Court had also said about depositing funds with the government. It was said by the Supreme Court that if the investors are not identified even after verification, then such funds will be deposited with the government.

However, even at present, not many investors have come forward. During the conversation with ED, the officer claimed that the unclaimed money of such investors can be used in schemes related to social development. Let us tell you that a web portal has also been launched to get the money back to the investors.

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SEBI issues rules to simplify offer documents of mutual fund schemes, will be applicable from April 1, 2024

Pravesh Maurya — Fri, 10 Nov 2023 06:06:50 +0000

Market regulator SEBI has issued rules to simplify the information documents of mutual fund schemes.

The market regulator said that with the implementation of this rule, investors will get more information about the scheme and it will be easier for them to understand all the aspects. The new rule will come into effect from April 1, 2024.

Summary of schemes will have to be kept simple

According to SEBI, from April 1, fund houses will have to share the summary of the schemes in the new format. This rule will not apply to the mutual fund scheme whose documents are already deposited with SEBI. According to this circular, the top-10 holdings and fund allocation of the scheme will have to be put on the web link.

Risk will have to be indicated on the riskometer

Information about how much the fund manager himself has invested in any fund will also have to be given. Apart from this, riskometer will have to be mentioned on the first page of the information memorandum of the application and scheme information document. With this, investors will be able to know whether this scheme is suitable for them or not.

Liquidity information regarding any scheme will also have to be given. SEBI said that it will be necessary to provide 6 months’ TER and factsheet of the scheme on the weblink.

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MF Nominee Rules: SEBI is going to change the rules for nominees in case of the death of investors

Pravesh Maurya — Mon, 06 Nov 2023 11:04:48 +0000

Nominee Rules: Investment is done to improve our lives and handle the burden of expenses even in bad circumstances.

It is this good habit of investing that has kept us Indians safe in difficult times like economic recession and has provided a sense of financial security to our families. But, while investing, it is very important for us to have correct and proper information about all the rules related to it.

One of these very important rules is related to the nominee of the investment. Recently SEBI has made changes in the rules related to information to be given in the event of death of the investor, which will come into effect from January 01, 2024. It is very important for all of you to know these KYC rules.

Information and verification process will become easier

SEBI has changed the rules to simplify the process of informing and verifying the death of an investor. Under this, the joint account holder, nominee, legal advisor or family member will have to do online or offline verification one day after receiving the death certificate and PAN number. After this, a copy of the nominee’s identity card, relationship with the deceased and contact details will have to be given. If for some reason all the necessary documents are not received after the intimation of death, then the KYC status of the investor will have to be put on hold.

What will happen in case of joint account?

The company will have to inform about the change in KYC and all the documents will have to be uploaded. Also, the facility of debit from the deceased account or portfolio will have to be stopped. In case of joint account, the account will remain active.

What will companies have to do?

The process of checking the documents entered in the system will have to be started. Also, information in this regard will have to be collected from people associated with the investor. After the death certificate is verified, the company will have to close the account completely and this information will have to be given to all the parties. If any deficiency is found in the papers, then changes in KYC will have to be made and this information will have to be given to the people related to the deceased.

What will the relatives of the deceased have to do?

On receiving the information of completion of KYC, they will not have to do any transaction related to the account of the deceased. If KYC status is stated to be on hold then they will have to provide other required documents.

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New Rule: Big news for investors, SEBI made a big change, read quickly

Pravesh Maurya — Sat, 26 Aug 2023 10:05:35 +0000

New Rules: Markets regulator Securities and Exchange Board of India (SEBI) recently approved changes in rules governing Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (InviTs) that invest in infrastructure, to make them more accessible to investors. to be made more acceptable.

What is Reits and InviTs

Reits and InviTs work like Mutual Funds. In this, capital is raised from investors for real estate or infrastructure projects through bonds or securities. Both are means of investment pooling. The REIT portfolio comprises commercial projects such as offices, corporate parks and shopping malls. A large part of these projects are already leased ie pre leased.

Similarly, an InvIT includes projects related to transport, energy or communication. REITs allow small retail investors to invest in real estate properties and earn income through fractional ownership. Similarly, InvIT enables direct investment from individual and institutional investors in projects in the infra sector.

How is the performance so far

Since its launch in 2019, REITs have gained immense popularity among common investors. Despite the difficulties during this period in construction of commercial properties, offices, malls etc. due to adverse market conditions, REITs earned a steady income in the form of rentals during the Covid pandemic. Similarly, there is a vast scope of investment possibilities for InviTs as well.

IRB InvIT Fund was the first InvIT listed on the stock exchanges about six years ago in 2017, while Embassy Office Parks REIT was the first real estate investment trust to be launched in 2019. There have been four REIT listings in the Indian market so far, and there are around 21 listed and unlisted REIT funds. At the beginning of this year i.e. 2023, the value of total assets under InvITs and Reits registered with SEBI was more than 13.5 trillion.

What are these changes of SEBI

Under the amendment in the rules, SEBI has now given nomination rights to the unit holders of InvITs and Reits on the board of the trust. Along with this, the concept of Self-sponsored investment managers has been introduced by changing the minimum unit holding rules for the sponsors of these trusts. Follow-on offers of REITs and InvITs are also being considered and the time taken to process their public listing has been reduced from 12 days to six days.

Why these changes are important

The purpose of these changes made by SEBI is to make the operations of InvITs and Reits more systematic and smooth by improving corporate governance. Along with this, retail unit holders will get an opportunity to express their views about their rights.

The principles of the “Stewardship Code” will now apply to all unit holders (having 10% or more units), thereby increasing accountability of the management. Sponsors will also now have to hold a minimum number of units for the entire period of the REIT or InvIT. Under the new rules, self-sponsored investment managers can now take over the responsibility of REIT sponsors and facilitate the latter’s exit from investments.

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SEBI new rule: Big news for stock market investors – SEBI is bringing new rules, may be announced in August

Pravesh Maurya — Mon, 24 Jul 2023 15:29:33 +0000

SEBI is reviewing the delisting rules. SEBI Chairman Madhabi Puri Buch told that soon new consultation papers will be issued regarding this. However, he said that it would be too early to say anything on this.

Let us tell you that the process of removing the shares of the company from the exchange is called delisting. If put in simple words, after delisting, trading cannot take place in the stock exchange. Delisting can happen on the will of the company management or ignoring the rules.

In delisting, the company’s stock is removed from the stock market. who have bought shares. The company buys them back from investors.

What are the current rules for delisting?

Experts say that the company fixes the floor price for delisting. Floor price means the minimum amount at which the shares will be bought back. After the floor price, the reverse book building process begins. Reverse book building means the price at which the investor wants to sell the shares of the company. The average price of reverse book building becomes the delisting price.

Why delisting- The management feels that the valuation of the shares is not right or due to the ignorance of the rules, regulatory ban has been imposed on the company. Apart from this, delisting is done for violating the listing rules.

What will happen now- According to CNBC, SEBI is reviewing the delisting rules. Sources say that work can be done on fixed price for delisting. If the first attempt of delisting fails, it can be extended further. The problems related to reverse book building for delisting are being reviewed. Consultation papers can be issued on this in August.

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HDFC Bank Merger: Big news came on the merger of Hdfc Bank-Hdfc after the market closed

Pravesh Maurya — Fri, 16 Jun 2023 14:28:52 +0000

HDFC Bank merger: As of Wednesday, at least 60 equity mutual fund schemes have total exposure to HDFC Bank and HDFC Bank that has crossed the 10% cap.

With the HDFC Bank and HDFC merger date getting closer, the dilemma of mutual funds is increasing. Actually, there is a significant share of funds in both the institutions, in such a situation, in case of merger, the share of funds in the new financial institution may exceed the prescribed limit.

According to media report, that market regulator SEBI is making up its mind not to give exemption to mutual funds for holding more than the limit. In such a situation, it is possible that the fund will have to reduce its stake within the stipulated time period. In such a situation, the selling of the stock will also affect the prices.

The merger will be completed in the next few weeks.

The merger will be completed in the next few weeks, which will create the country’s second largest financial institution after State Bank of India. However, at the same time, such funds whose stake is more than the prescribed limit will also be under pressure to reduce their stake and its effect will be seen on the stock of the merged institution.

As per SEBI regulations, a mutual fund scheme cannot invest more than 10% in a single security. However, exchange-traded funds and funds investing in specific sectors are exempted from this. As of Wednesday, the total exposure of at least 60 equity mutual fund schemes to HDFC Bank and HDFC has crossed the stipulated limit of 10%.

What are the options with the funds

A source said that Sebi may consider the breach of this limit as a “passive breach”, as there is no deliberate attempt to break the rules. This situation has arisen because of the merger. In such cases, the fund has 30 days to rebalance its portfolio, which can be further extended by 60 days, failing which the mutual fund may face regulatory action, the source said. Is.

On the other hand, another source said that if it had a widespread impact on the market, then there would have been a need to take regulatory steps, although this is not the case here. According to two executives of the mutual fund, the matter has been referred to the Association of Mutual Funds in India (AMFI). Officials said last week,

Block trade in HDFC

Block trade has been seen in HDFC today amidst ongoing discussions regarding the limit of mutual funds. Where 14.23 lakh shares have been traded at a price of 2650, the entire deal was worth Rs 377.19 crore. Today the stock is trading close to the level of 2650 with a slight gain. On the other hand, there has been a slight decline in the stock of HDFC Bank.

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SEBI has banned doing this regarding mutual funds, now these rules will have to be followed

Pravesh Maurya — Thu, 15 Jun 2023 08:02:59 +0000

Digital platforms such as Zerodha and Paytm Money that allow investors to buy, redeem or switch units in direct plans of mutual funds will now have to comply with the new norms.

Market regulator SEBI has followed last year’s consultation paper setting out a detailed regulatory framework on Execution Only Platforms (EOP) with final guidelines.
One of the restrictions imposed on these platforms is that such EOPs cannot sell regular plans of mutual funds on their website. Another restriction is that these EOPs cannot advertise specific mutual funds or mutual fund schemes on their platform.

Note that SEBI-

Online platforms run by registered investment advisors will not be covered under this new framework.

Will charge fees from AMC

SEBI has divided such EOPs into two categories. Category 1 EOPs will need to be registered with the Association of Mutual Funds in India (AMFI) and will collect fees directly from Asset Management Companies (AMCs). These entities will have to enter into an agreement with the AMC.

Whereas, Category 2 EOP will be registered with SEBI as a stock broker and will charge fees from investors. Existing platforms will be required to register under any one of the categories of EOP by September 1, 2023.

If we talk about fees, then Category 1 EOP can charge a flat fee from Asset Management Companies, which will not be based on the quantum of trade. However, Category 2 EOPs will charge a similar fee from investors. The fee structure will be nominal and will be decided by AMFI and the Stock Exchange.

SEBI has also asked EOPs to stay away from advertisements of specific mutual funds. At present, many digital platforms selling mutual funds are running advertisements of many funds and fund houses.

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Mutual fund new rules: SEBI is bringing new rules for your mutual fund scheme, money will increase rapidly

Pravesh Maurya — Sat, 06 May 2023 08:02:13 +0000

The Securities and Exchange Board of India (SEBI) is now preparing to introduce performance charges for fund managers under mutual fund schemes. That is, fund managers will be able to charge investors based on the performance of the fund.

According to the information received by CNBC TV18, a decision can be taken soon. At present, some percentage is charged as fee on the basis of different types of schemes size and assets under management (AUM).

How to be charged

With many actively managed mutual funds failing to beat their benchmark indices, SEBI is preparing to propose a new category of mutual fund schemes with performance-linked fees. FYERS Head of Research Gopal Kavalireddy said that the proposal is similar to the charge structure of Portfolio Management Services (PMS), under which mutual funds will be able to charge advance fees. PMS is a professional financial service where the equity portfolio is managed by skilled portfolio managers and stock market professionals with the help of a research team.

what will be its impact

Kavalireddy believes that this regulation has been prepared keeping in mind the investors, which can prove to be effective in providing higher returns. He said that for some time SEBI has been making changes in the investment rules to benefit the investors. This new proposal seems correct in view of the present circumstances. Because some mutual fund schemes have performed poorly over a long period of time while some have given better returns as compared to top PMS schemes. Sourav Basu, head of wealth management at Tata Capital, said the initiative would encourage fund managers to generate better returns for investors.

However, in the meantime Basu also talked about its negative point. Told that fund managers may take undue risk to earn higher returns and earn higher fees, which may later affect investors. Vinayak Magotra, founding member, Product at Centricity, said investors may find it difficult to understand such a fee structure. This may increase confusion, due to which the participation of investors may decrease.

Basu said it is important to carefully consider the potential risks and benefits before deciding to invest in funds that charge such fees. He further said that it is also necessary to carefully evaluate the track record and investment strategy of the fund manager.

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SEBI’s New Order: Now brokers will not be able to give bank guarantee on customers’ money, see details here

Pravesh Maurya — Mon, 01 May 2023 13:02:35 +0000

The business of brokers is widely spread in the country. Brokers earn money in different ways. One of these ways is to give bank guarantee on the money of the customers.

Brokers make a lot of money by giving bank guarantees on clients’ money. In such a situation, many times the money of the customers is also misused by the brokers. In view of this, recently SEBI has taken a big step. The Securities and Exchange Board of India (SEBI) has recently ordered that brokers will no longer be able to use clients’ money to give bank guarantees.

When will the ban take place?

According to SEBI’s order, there will be a ban from the beginning of next month i.e. from May 1, 2023, on the use of brokers’ clients’ money for giving bank guarantees. Not only this, as per SEBI’s order, all the existing guarantees given on the money of the customers will be canceled by 30 September.

Customers’ money will be saved from risk

SEBI has issued this order to protect customers’ money from risk and prevent its misuse. Stock market is risky in nature. In such a situation, the bank guarantee given by the brokers on the money of the customers puts their money at risk. Also there is a possibility of its misuse.

At present, brokers and other intermediaries pledge clients’ money with banks, which in turn give guarantees to clear clearing corporations for large amounts. This puts the money of the customers at risk. SEBI’s order will remove this risk.

Monitoring will now happen

SEBI in its order has asked stock exchanges and clearing corporations to systematically monitor closure of bank guarantees given by brokers on clients’ money.

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Big news! SEBI has banned these consultancy service firms, are you also not taking advice?

Pravesh Maurya — Fri, 07 Apr 2023 09:29:38 +0000

Unauthorized Investment Advisory Services: Capital market regulator SEBI has banned four companies from the securities markets for six months for providing investment consultancy service without approval.

The Securities and Exchange Board of India (SEBI) has barred Course Work Focus and its owner Shashank Hirwani, Capital Research owner Gopal Gupta and Cappers owner Rahul Patel from participating in the securities market for six months.

Raised over Rs 96 lakh from investors

In two separate orders passed by SEBI, SEBI found in its investigation that these companies were engaged in unauthorized investment advisor services without obtaining certificates as investment advisors. According to the market regulator, Coursework Focus and Hirwani had collectively raised over Rs 96 lakh from investors during March 2018 to July 2020.

Apart from this, Gupta and Patel together collected Rs 60.84 lakh from investors between June 2014 and November 2019. Sebi, in its final order passed on Wednesday, said that by such actions the companies have violated the IA (Investment Advisor) rules. SEBI, in its order, has directed the companies to refund investors’ money paid for such services within three months.

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SEBI New Rules Change: SEBI changed these rules, now top-100 companies will have to do this work

Pravesh Maurya — Thu, 30 Mar 2023 07:03:38 +0000

SEBI Top 100 Companies: Trading in the domestic stock market is going to be more transparent now. Along with this, new provisions (SEBI New Norms) have also been made to protect the interests of the investors.

Market regulator SEBI has tightened the rules regarding listed companies in the stock market. SEBI Chairperson Madhabi Puri Buch gave this information after the latest meeting of the board.

SEBI made this big change

He said that the market regulator has made some changes in the rules regarding the information related to the companies listed in the stock market. This step of SEBI is to ensure more transparency. SEBI has told big companies that now they will have to either deny or confirm all such news and rumors going on in the market, which can affect the prices of shares. This will not only bring transparency in the market, but will also ensure timely disclosure of important information.

Will have to disclose in 30 minutes

SEBI issued a press release on Wednesday after the board meeting informing about the changes. According to SEBI, the 100 largest companies in terms of market capitalization will have to follow the new rules from 01 October 2023. On the other hand, top-250 companies have been given time till 01 April 2024 for this.

Along with this, SEBI has also made provision regarding material information. SEBI says that companies will have to disclose material information within 30 minutes after the meeting of the board of directors. Although SEBI has not yet told what is material information according to it. The regulator said that it will soon give information about the benchmarks in this regard.

No comment from sebi on adani

During this, the SEBI chairperson also gave responses on many other issues. When asked about the controversies related to Adani, he declined to comment. The SEBI chairperson said that it is not right to comment on any one entity, especially when the matter is sub-judice. He said that the issues and controversies related to Adani group are being investigated. SEBI will submit the investigation report to the Supreme Court.

These posts will have to be filled in 03 months

SEBI also made changes regarding the appointment of directors of the company. At present there are posts of permanent directors in the board, but now their provision has been removed. SEBI says that every person included in the board of directors of any listed company will need the approval of the shareholders from time to time. The companies will have to fill the posts like Director, Compliance Officer, Chief Executive Officer and Chief Financial Officer within 03 months from the date of vacancy.

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Demat Account Nomination deadline Extended: Big Relief! SEBI has extended the deadline for adding nominee for 6 months, know the new date

Pravesh Maurya — Tue, 28 Mar 2023 06:05:47 +0000

Demat Account Nomination Deadline: The Security and Exchange Board of India (SEBI) has extended the deadline for adding a nominee under the Demat account. March 31 was fixed as the last date for adding nominees to Demat account holders.

This meant that from April 1, such account holders could not invest in the stock market, but now SEBI has increased it.

The market regulatory board has extended the demat account deadline for six months. Now demat account holders can complete this work by 30 September 2023. The market regulator has said in its circular issued on March 27 that on the basis of demat accounts with trading in which nomination details have not been updated, they can now get updated by September 30, 2023.

Deadline has been extended twice

SEBI had earlier extended the deadline for adding nominees from 24 February 2022 to 31 March 2023. Now this deadline has been extended for 6 months. If you do not update the nominee even in the meantime, you may be debarred from investing in the share market. Let us know how you can add a nominee.

How to add nominee in demat account

Login to your demat account and click on My Nominee.
Now a page will open in front of you to add a nominee.
After this you can choose to add a nominee or opt out.
Upload the complete details and ID proof of the nominee under the Nominee option.
After uploading the document, enter the nominee share percentage, which the investor would like to give to the nominee.
Now e-sign the document with Aadhaar OTP.
Nominee details will be processed and your nominee will be added.

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Share Market Rules! SEBI made changes in the rules related to the stock market, investors should read this news

Pravesh Maurya — Fri, 17 Feb 2023 09:31:37 +0000

SEBI: The Securities and Exchange Board of India said in a circular that giving information about various activities of stock brokers and depository participants on the specified website would provide relevant information to investors and would also help in bringing transparency.

Share Market Rules: If you also invest in the share market, then this news is useful for you. Market regulator SEBI (SEBI) has made website operation necessary for all stock brokers and depositories for the purpose of bringing transparency.

The Securities and Exchange Board of India (SEBI) said in a circular that by providing information on the specified website about various activities of stock brokers and depository participants, investors will get relevant information and will also help in bringing transparency.

Operation of personal website mandatory

SEBI said that in view of the advancement in technology and the need to provide better service to investors, it has been made mandatory for all stock brokers and depositories to operate their respective websites. In addition to their registration, office address and branch, details of names and contact numbers of all key officials will be available on such website.

Apart from this, point-wise information about opening of account for a potential customer will also have to be given on the website. Information about the procedure for registering complaints on the specified e-mail and the current status of the complaint will also be required to be given on the website. According to SEBI, the new system will be effective from 16 August.

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PACL Chit Fund Refund: Big Update! If your money is stuck in Pearls then money will come in your account on this day, this information came to the fore

Pravesh Maurya — Tue, 22 Nov 2022 10:04:38 +0000

PACL Chit Fund Refund Update: If your or anyone you know’s money is stuck in PACL India Ltd / Pearls, then there is an important update for you. Those who put money in PACL (PACL Refund) can soon get their money in their account. SEBI has informed that they have started returning investors’ money.

Giving information about those
with more defects, SEBI has informed that the refund has been started from our side, but there are some claims which have more than one defect, so such claims have not been paid. Is. If you also have such a case, then there may be a delay in getting your money.

The committee has been formed, let us tell you that a meeting has been held under the chairmanship of retired judge RM Lodha, in which it has been told that a committee has been formed to return the money of PACL. It is only through this that investors’ money is being returned.

Flaws can be rectified online

According to information received from SEBI, refund money has been issued to the eligible applicants of those who had claimed Rs 15,000. At the same time, only the money of the investors who had some mistakes in the form is stuck. So you can correct such mistakes online sitting at home.

Refunds are being received from the year 2020. The process of returning their money to PACL investors has been done from January 2020, under which claims of up to Rs 5000 could be made. After this, in the middle of January 2021, investors were asked to apply to claim up to Rs 10,000. At the same time, in April 2022, SEBI has sought applications from investors for refund ranging from Rs 10,001 to Rs 15,000.

Correct the defects by January 2023

Let us tell you that at this time you can claim a refund of up to Rs 15,000. In this, time has been given till January 2023 to remove the flaws found in the application, that is, if you still have 2 months, then you can apply for it.

How to correct mistakes

You have to first go to sebipaclrefund.co.in to correct the mistakes made in the application. After this, you can remove any mistake made in your form. You have time till January 31, 2023. This window is open only till January. After this you will not be able to correct the mistake.

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SEBI issued new guideline: Big News! SEBI tightens disclosure rules for IPO, approves changes in many rules

Pravesh Maurya — Wed, 05 Oct 2022 22:28:25 +0000

SEBI has approved several rules changes while tightening the disclosure norms for IPOs. SEBI’s board of directors in a meeting held here on Friday approved a proposal to introduce an alternative mechanism by allowing companies looking to submit preliminary documents for IPOs to confidentially submit regulatory information.

The Securities and Exchange Board of India (Sebi) has approved changes in several rules, including tightening of disclosure requirements for initial public offerings (IPOs)

According to SEBI, it is mandatory for the issuer to disclose the offer value based on past transactions and fund raising activities.

SEBI’s board of directors in a meeting held here on Friday approved a proposal to introduce an alternative mechanism by allowing companies looking to submit preliminary documents for IPOs to confidentially submit regulatory information.

The market regulator has also decided to make major changes to bring more flexibility in the structure of Offer for Sale (OFS). This includes doing away with the minimum shareholding requirement for non-promoter shareholders.

At present, non-promoter shareholders willing to offer at least 10 per cent stake in a company and shares worth Rs 25 crore are eligible to participate in the OFS framework.

Apart from this, the capital market regulator has also decided to introduce a two-tier verification process for trading in mutual fund units to safeguard the interest of investors. SEBI said that the new draft in this regard will be implemented from April 1 next year.

At present, all Asset Management Companies (AMCs) are required to verify the withdrawal transactions by two-stage verification for online transactions and signature for offline transactions.

“It has now been decided that two-way verification will be extended to the transaction of purchase of units of mutual funds also,” SEBI said.

The market regulator has also decided to relax the pricing norms for open offers in respect of disinvestment of public sector undertakings.

In addition, SEBI will introduce a regulatory framework to facilitate providers of online bond platforms to sell listed debt securities.

Under the framework, such forums should be run by a SEBI registered broker as a Stock Broker (Loan Segment) or registered with SEBI.

The meeting also decided to extend the deadline by two months to November 30 for implementation of the standardized framework for industry classification by credit rating agencies.

This framework is for rating exercise and research activities and its deadline was to end on Friday itself.

SEBI has also approved the introduction of a new option for the appointment and removal of independent directors from the board of directors of companies. The move will provide flexibility in the approval process for the appointment or removal of independent directors.

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PACL Chit Fund Refund: This is the last chance for the investors of Pearls to get the refund, SEBI gave the deadline

Pravesh Maurya — Mon, 29 Aug 2022 14:04:22 +0000

PACL Chit Fund Refund: If you have also invested in PACL India Limited’s investment plan Pearls, then there is very important news for you. This is your last chance to get your money back. Actually, the market regulator SEBI (SEBI) has made a big announcement for the investors. SEBI has said that investors should in any case submit their original documents with SEBI before 31 August. SEBI has also said that now this is the last chance for investors.

Claim filing date extended

Actually, SEBI has extended the last date for submission of original documents from June 30 to August 31. In fact, many investors were unable to submit their documents till June 30 and were demanding extension of the date. After this SEBI has taken this step. However, this time SEBI has made it clear that this is the last chance to submit the documents.

Who will get benefit?

According to the information given by SEBI, the refund window is open only for those investors whose claim amount is from Rs 10001 to Rs 15000. Their application has also been verified. With this, let us tell you that SEBI has issued an alert saying that investors should not give investment documents to anyone in the Pearls scheme. So all the investors should register their claim before 31st August 2022.

Send your documents to this address

Only those investors of Pearls to whom SMS has been sent after verification can claim for refund. Send the original documents through Registered Post or Speed Post to SEBI Bhawan, Plot No.C4-A, ‘G’ Block, Bandra-Kurla Complex, Bandra (East), Mumbai –400051. You must write the PACL certificate number on the envelope to be sent to this address.

It is mandatory to send these documents

1. Copy of PACL certificate
2. Copy of PAN card Receipts (if any) of PACL
3. Copy of canceled check
4. Banker’s certificate
5. PAN card copy
6. Passport size photograph

The post PACL Chit Fund Refund: This is the last chance for the investors of Pearls to get the refund, SEBI gave the deadline first appeared on Rightsofemployees.com.

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