Blog Posts
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SEBI moves the Supreme Court over SAT order
An order by the Securities Appellate Tribunal (SAT) in August last year has again stirred the hornet’s nest with respect to the powers of the regulatory bodies, and the resolution of areas of overlap. S. Kumars Nationwide, is a company listed on the Bombay Stock Exchange (BSE), and engaged in the business of buying selling,…
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Multiplicity of Stock Exchanges
Usually, stocks are listed on one major stock exchange in a given jurisdiction. For example, a U.S. stock will be listed either on the NYSE or NASDAQ. But, the position in India is different, perhaps for historical and other reasons, where not only there are multiple stock exchanges, but a number of companies are listed…
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Relaxation in Short Selling Norms
SEBI has introduced changes to the securities lending and borrowing (SLB) framework which may help uplift the market for short sales. The contract tenure for SLB has now been increased to 12 months. The Economic Times notes the rationale: SLB was introduced in April 2008, starting with a contract tenure of seven days. With hardly…
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Internal Audits for Credit Rating Agencies
The role of credit rating agencies has been the subject-matter of discussion ever since the sub-prime crisis erupted, and the industry has been subjected increased scrutiny and regulation. However, much of that has not affected India, and there has been no serious overhaul of the system regulating rating agencies in India. SEBI, in its recent…
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Rationalizing the Absence of an Indian SWF
Nearly two years ago, we had debated (here and here) the pros and cons of India’s establishment of a sovereign wealth fund (SWF), when that topic was the flavour of the day. Since then, the global financial crisis and receding stock markets at least partially eclipsed the increasing appeal of SWFs. Nevertheless they continue to…
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MCA 2009
The previous post highlighted some of the key developments in corporate law and related aspects last year. Since then, I came across a year-end review published by the Ministry of Corporate Affairs (MCA) that details the progress it made last year. While there have been several steps towards easing the procedures for doing business, the…
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The Year That Was: A Round-up of 2009
The year began amid serious efforts by governments across the world to battle the fallout of the financial crisis. Although India escaped relatively unscathed from the direct effects of the crisis, it had experienced flight of capital from the country. While 2009 saw investors flocking back and aiding the recovery of the stock markets, India…
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Compensating Investors: IPO Irregularities
SEBI has recently published a report by the Justice D.P. Wadhwa Committee in connection with irregularities in various IPOs in 2005. The report itself was, however, submitted by the Committee to SEBI as early as December 2007. In those IPOs, certain applications were made by certain persons using fictitious demat and bank accounts in the…
