SEBI mandates Block mechanism in demat account for share sale transactions from 14th November 2022.
Under the mechanism, shares of a client intending to make a sale transaction will be blocked in the client’s demat account in favour of the clearing corporation concerned. The block mechanism will become mandatory from 14th November 2022.
IFSCA issues ‘Framework for Ship Lease’
The IFSCA, after evaluating the potential of ship leasing in the context of “Atma Nirbhar Bharat”, issued a framework to provide an enabling regulatory framework for promoting GIFT IFSC as a hub for international ship leasing and financing business.
Directions for Asset Management Companies Participating as Financial Information Providers in Account Aggregator framework
There shall be adequate safeguards built in IT systems of FIPs in the securities markets to ensure that it is protected against unauthorized access, alteration, destruction, disclosure or dissemination of records and data. The FIPs in the securities markets shall also abide by the code of conduct as specified in the SEBI regulations applicable to them, including redressal of grievances of the customers.
SEBI Settlement Scheme 2022
The terms and conditions of the Scheme, 2022 shall be available on the respective websites of SEBI and BSE on August 22, 2022. The Scheme shall commence on August 22, 2022 and end on November 21, 2022 (both days inclusive) or such other date as approved by the Competent Authority.
BSE clarification on the Brokerage, Statutory & Regulatory Levies
It is clarified that the maximum brokerage on options contracts shall not exceed 2.5% of the premium amount of Rs. 100/- (per lot) whichever is higher. The trading members can charge brokerage for option contracts only on the premium amount at which the option contract was bought or sold and not on the strike price of the option contract.
SEBI notifies Guidelines for overseas investment by Alternative Investment Funds (AIFs) / Venture Capital Funds (VCFs)
As per the new guidelines, AIFs/VCFs shall file an application to SEBI for allocation of overseas investment limit in the notified format and they shall invest in an overseas investee company, which is incorporated in a country whose securities market regulator is a signatory to the International Organization of Securities Commission’s Multilateral Memorandum of Understanding or a signatory to the bilateral Memorandum of Understanding with SEBI.
The Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2022.
The recognized limited purpose clearing corporation shall put in place a dispute resolution mechanism, for settlement of disputes or claims arising out of transactions cleared and settled by it, in the manner as specified by the Board in consultation with the Reserve Bank of India.
BSE mandates submission and scrutiny of identity and address proof of all the newly onboarded clients with permanent address ‘Sikkim’
The documents should be sent vide email on bse.reports@bseindia.com.
Framework for restricting insider trading by Designated Persons (“DPs”) by freezing PAN at security level
This restriction on trading shall be for on-market transactions, off-market transfers and creation of pledge in equity shares and equity derivatives contracts (i.e., Futures and Options) of such listed companies and shall be applicable to declaration of financial results of listed company that is or was part of benchmark indices from the date of implementation of the circular.
SEBI notifies enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligence.
Before initiating due diligence, a DT and the listed entity shall enter into an amended debenture trust agreement to incorporate the obligations as notified in SEBIs earlier notifications for continuous monitoring and any other stipulations of SEBI from time to time with respect to security creation, initial due diligence and continuous monitoring by DTs. A DT shall carry out due diligence for change in security, creation of security/ additional security and shall issue a no-objection certificate (NOC) to issuer company for going ahead with proposed change in the structure/ creation of security.
