SBEI issues circular on RFQ platform for trade execution and settlement of trades in listed Non-convertible Securities.
RFQ is an electronic platform to enable sophisticated, multi-lateral negotiations to take place on a centralized online trading platform with straight-through-processing of clearing and settlement to complete a trade.
International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021
An applicant desirous of operating as an insurance intermediary in an IFSC shall submit an application to the Authority in the form specified in SCHEDULE-VI of these regulations. The application for renewal of certificate along with renewal fee as specified by the Authority shall be submitted in prescribed format at least ninety (90) days before the expiry of the certificate. The insurance intermediary shall file the periodical returns as may be specified by the Authority.
NSE issues circular on Internal Audit of Trading Members/ Clearing Members.
The Audit shall be conducted only by independent qualified Chartered Accountant or Company Secretary or Cost & Management Accountant who is in practice and does not have any interest in or relation with the Member other than the Internal Audit assignment.
SEBI notifies framework for Governing Council for Social Stock Exchange (SSE).
The Board of the Stock Exchange shall prescribe the procedure, frequency, quorum etc for the meetings of SGC as well as guidelines for handling potential conflict of interest, if any. SGC shall meet as frequently as required with minimum of four meetings in a financial year.
SEBI issues circular on Suspension, Cancellation or Surrender of Certificate of Registration of a Credit Rating Agency (CRA)
Listed entities or issuers who have obtained credit rating from a CRA whose registration is cancelled or suspended or surrendered, desirous of obtaining credit rating for regulatory purposes, shall obtain credit rating(s) from another SEBI registered CRA(s) holding a valid certificate of registration under CRA Regulations.
SEBI issues Standard Operating Procedure for inter-operable Regulatory Sandbox
Financial products / service providers whose business models / activities / features fall within the remit of more than one financial sector regulator, shall be considered for the testing under IoRS. FinTech Department of RBI shall act as nodal point for receiving applications under IoRS and shall be designated as ‘Coordination Group (CG)’ for IoRS. All the necessary secretarial support shall be provided by them.
SEBI directions pertaining to Electronic Book Provider (EBP) platform
The circular specifies the issuances which must necessarily be made through EBP, the eligible participants, obligations/ responsibilities of various entities, the provision to an issuer to withdraw offers, the process of bidding and allotment, etc. The other stipulations of the existing EBP framework like threshold limits for applicability, Bidding limits for arrangers, Penalty in case of default etc. have also been modified.
SEBI issues clarification on Execution of ‘Demat Debit and Pledge Instruction’ (DDPI) for transfer of securities towards deliveries / settlement obligations and pledging / re-pledging of securities.
Securities transferred on the basis of the DDPI provided by the client shall be credited to client’s TM pool account / CM pool account / demat account of clearing corporation, as the case may be. The DDPI provided by the client shall be registered in the demat account of the client by TM /CM. Stock Exchanges and Depositories shall ensure that stock broker/stock broker and depository participant providing DDPI facility, has enabled its clients to revoke / cancel the DDPI provided by them
SEBI extends the timeline for entering the details of the existing outstanding non-convertible securities in the ‘Security and Covenant Monitoring’ system.
The existing outstanding non-convertible securities, issuers shall ensure that they enter the details into the DLT system on or before October 31, 2022; DTs shall verify the same by December 31, 2022.
SEBI cautions public against unauthorized money mobilization by entities claiming to provide Portfolio Management Services.
SEBI registered intermediaries including Portfolio Managers (who manage Portfolio Management Schemes) cannot offer products with assured or fixed return on investment. Many such unauthorised schemes are run like Ponzi schemes without any real investment made in the securities market.
