In the interest of investor protection, on July 22, SEBI issued 2 circulars to amend the extant guidelines for grievance redressal mechanism for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). For REITs, SEBI modified para 5.3 of Annexure B of the circular dated December 29, 2016, and for InvITs, SEBI modified para…
On July 22, the Supreme Court of India (SC) in the matter of Prakash Gupta v. SEBI while interpreting Section 24A of the Securities and Exchange Board of India Act, 1992 (SEBI Act), held that the power to compound offences under Section 24A of the SEBI Act rests exclusively with the Securities Appellate Tribunal (SAT)…
On June 25, 2021, SEBI issued a discussion paper on ‘Review of Delisting Framework Pursuant to Open Offer’ (Discussion Paper) recommending a new framework which would allow acquirers to simultaneously undertake both delisting and open offers, subject to certain conditions. The proposed framework has been recommended by a sub-group of the Primary Market Advisory Committee…
On June 14, 2021, SEBI issued a circular on ‘Revised Framework for Regulatory Sandbox’ (“Revised Sandbox Policy”), revising the erstwhile framework issued by SEBI through circular dated June 05, 2020. A regulatory sandbox grants regulatory relaxations (ranging from registration fee to track record) for a period of one year, to financial institutions to enable them…
On May 20, 2021, in the informal guidance issued to Purnartha Investment Advisers Pvt. Ltd. (Purnartha), SEBI clarified the validity of procuring client’s signature by electronic means on the annexure setting out the fees and charges of the portfolio management account opening form. The informal guidance was sought in relation to a circular issued on…
Event – based and prompt disclosure of material information are directed towards keeping public shareholders abreast of the developments of the listed entity. A statutory obligation in this regard was initially provided under the erstwhile Clause 36 of the Equity Listing Agreement (Listing Agreement), which laid down an indicative list of events which may be…
On May 10, 2021, SEBI issued a Consultation Paper seeking public comments on a proposed framework for the segregation and monitoring of collateral at client level (“the Consultation Paper”). The main objective of the proposed framework is to enable identification and protection of client collateral from misuse/mismanagement by the trading member (“TM”) or clearing member…
On May 05, 2021, the Securities and Exchange Board of India (“SEBI”) brought in a slew of changes to the SEBI (Alternate Investment Funds) Regulations, 2012 (“AIF Regulations”) aimed at improving clarity and accountability with respect to alternate investment funds (“AIFs”) and their functioning via the SEBI (Alternate Investment Funds)(Second Amendment) Regulations, 2021 (“Amendment”). Broadly,…
In an attempt to protect the interests of investors, SEBI has provided for the alignment of interest of key employees of the Asset Management Companies (“AMCs”) with the unit holders of the mutual fund schemes by mandating a unique scheme of compensation for the key employees. Vide circular dated April 28, 2021, SEBI has mandated…
While credit rating agencies (CRAs) are required to frame a detailed policy on provisional ratings and disclose the same on their website, on April 27, 2021, SEBI issued a circular to standardize and strengthen policies related to provisional rating by CRAs for debt instruments (Circular). As per the Circular, a CRA cannot assign a rating,…
