Master Circular on Surveillance of Securities Market
This Master Circular is categorized subject wise under various headings, viz., trading rules and shareholding in dematerialized mode, monitoring of unauthenticated news circulated by SEBI registered market intermediaries through various modes of communication and disclosure reporting under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.
SEBI’s New Guidelines on Mutual Fund Participation in Credit Default Swaps (CDS)
By allowing Mutual Funds to sell CDS, SEBI has provided them with a new tool to generate returns and manage liquidity. This move could lead to deeper corporate bond markets as funds become more active participants in managing credit risk.
Standard Operating Procedure for payment of “Financial Disincentives” by Market Infrastructure Institutions (MIIs) as a result of Technical Glitch
MIIs shall carry out internal examination pertaining to occurrence of technical glitches to ascertain individual accountability and take appropriate action including suitable recording and reckoning in the performance appraisal of those individuals. SEBI would retain the right to initiate enforcement action against the individuals at the MII, if there is sufficient ground to do so.
SEBI clarification regarding usage of UPI by individual investors for making an application in public issue of securities through intermediaries
In order to streamline and align the process of applying in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitized debt instruments with that of public issue of equity shares and convertibles, it has been decided that all individual investors applying in public issues of such securities through intermediaries (viz. syndicate members, registered stock brokers, registrar to an issue and transfer agent and depository participants), where the application amount is up to Rs. 5 Lakh, shall only use UPI for the purpose of blocking of funds and provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries.
SEBI promotes standardized reporting
The new standardized file formats, termed “Unified Distilled File Formats (UDiFF)”, which is in conformity with international ISO standards, has been implemented in a phased manner.
Operational Guidelines for Foreign Venture Capital Investors and Designated Depository Participants
hese operational guidelines (“guidelines”) for Foreign Venture Capital Investors (“FVCIs”) and Designated Depository Participants (“DDPs”) are issued to facilitate smooth transition to the amended FVCI regime and operationalisation of the amended provisions of SEBI (Foreign Venture Capital Investors)Regulations, 2024 (FVCI Regulations”).
SEBI has reduced the timeline for listing of debt securities and Non-convertible Redeemable Preference Shares to T+3 working days from existing T + 6 working days
The T+3 timeline for listing shall be appropriately disclosed in the Offer Documents of public issues.
Securities and Exchange Board of India (Delisting of Equity Shares) (Amendment) Regulations, 2024
The amendment provides that when delisting is proposed upon acquisition, acquirer shall open an interest bearing escrow account with a Scheduled Commercial Bank, not later than seven working days from the date of obtaining the shareholders’ approval, and deposit there in an amount equivalent to twenty-five percent of the total consideration.
SEBI enables T+2 trading of Bonus shares where T is the record date
SEBI, as a part of the continuing endeavor to streamline the process of Bonus issue of equity shares, in consultation with the market participants, has decided to reduce the time taken for credit of bonus shares and trading of such shares, from the record date of the Bonus Issue under SEBI (ICDR) Regulations, 2018, enabling T+2 trading of Bonus shares where T is the record date.
SEBI has announced an optional mechanism for fee collection by SEBI registered Investment Advisers (IAs) and Research Analysts (RAs)
The mechanism has been co-created by BSE Limited with the help of various stakeholders. BSE Limited shall specify the operational framework for the mechanism on or before September 23, 2024 and make the mechanism operational from October 01, 2024.
