Enhanced obligations and responsibilities of qualified Stock Brokers (QSBs)
The provisions of this circular shall come into effect from July 01, 2023. It has laid down the Parameters for designating a stock broker as QSB and the Procedure for assigning a score to a stock broker.
SEBI issues Dos and Don’ts of Green Debt Securities to avoid occurrences of Greenwashing
The Securities and Exchange Board of India (SEBI) has issued a Circular on Dos and Don’ts of Green Debt Securities to avoid occurrences of Greenwashing. The Circular is issued to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. This Circular was issued on 3rd February, 2023 and came into immediate effect.
SEBI issues Circular on Manner of Achieving Minimum Public Shareholding
Previously, SEBI had permitted different methods that could be used by listed entities to achieve compliance with the minimum public shareholding (MPS) requirements under the Securities Contracts (Regulation) Rules, 1957 and the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations, 2015. In order to help achieve MPS compliance, a few of the existing methods have been reviewed and rationalized and two additional methods have been introduced.
SEBI issues Consultation Paper on the direct plan for schemes of (AIFs) and a trail model for distribution commission in AIF
The objective of this consultation paper is to seek comments/ inputs/ suggestions from all stakeholders on the two proposals, i.e. direct plan for schemes of Alternative Investment Funds (AIFs) and trail model for distribution commission in AIF. The consultation paper proposes that AIFs must be mandated to offer the option of a Direct Plan for investors, entailing no distribution/ placement fee. Investors on-boarded via the direct plan will be provided for an adjusted higher number of units, taking into account the lower distribution charges applicable to them versus other investors. Thereby, all investors would continue to see the same Net Asset Value (NAV) on their unit holdings.
Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) (Amendment) Regulations, 2023
Amendments are made regarding Right to recall or redeem prior to maturity of non convertible securities.
BSE Clarification to SEBI (Stock Brokers) (Amendment) Regulations, 2022
The revised Net worth requirements as per the amended regulations would be applicable to the Members from February 23, 2023, and February 23, 2024, respectively. The Members are requested to adhere and comply with the applicable Net worth (i.e., higher than the Base Net worth or Variable Net worth) as stated in the aforesaid SEBI gazette notification with effect from February 23, 2023.
SEBI issues Consultation Paper on Regulatory Framework for REITs and InvITs to issue Depository Receipts
The objective of this consultation paper is to seek comments/views/suggestions from market participants on the proposed regulatory framework to allow DRs being issued as against units of REITs and InvITs established in India. The paper was issued on 1st February, 2023.
NSE issues Circular on Adjustment of F&O contracts in the security NTPC
NTPC LIMITED has informed the NSE that its Board of Directors at its meeting held on 28th January, 2023 has approved interim dividend of Rs. 4.25/- per equity share of face value of Rs. 10/- each. The record date for the purpose of payment of dividend is fixed as 4th February, 2023. The methodology for position adjustments shall be separately intimated by respective Clearing Corporation.
SEBI issues Circular on Transaction in Corporate Bonds through Request for Quote (RFQ) platform by AIFs
SEBI stipulates that AIFs shall undertake at least 10% of their total secondary market trades in Corporate Bonds by value in a month by placing/seeking quotes on the RFQ platform. Additionally, the circular clarifies that all transactions in Corporate Bonds wherein AIF(s) is/are on both sides of the trade must be executed through RFQ platform in ‘one-to-one’ mode.
BSE explains the Applicability of Two-Factor Authentication
Trading Members and Participants registered on New Debt Segment – Reporting, Settlement and Trading (NDS-RST) Indian Corporate Debt Market (ICDM) platform must take note of this 2 Factor Authentication. This 2FA is mandatory and will apply to all NDS-RST (ICDM) platform users from 1st February, 2023.
