[Garv Arora and Vatsal Jain are 3rd year B.A., LL.B. (Hons.) student at HNLU, Raipur] By way of its circular titled ‘Framework for Short Selling’ dated January 5, 2024 (the ‘Circular’), the Securities and Exchange Board of India (‘SEBI’) has laid down a definitive framework to better regulate short-selling transactions in the Indian stock market. Short selling is a trading activity that focuses...
Empowering Investors: SEBI’s Game-Changing Circular on Trading Account Control
[Nikita Singh and Aishana are the third year law students at Gujarat National Law University.] The Indian stock broking industry is undergoing a major change with the introduction of a new facility for investors to voluntarily freeze or block their online access to their trading accounts. This facility, which was introduced by the Securities Exchange Board of India (SEBI) on 12 January 2024...
Beyond the Hype: Risks and Regulations in Binary Options Trading
[Shaswat Kashyap is a 3rd-year student at Gujarat National Law University and Snigdha Dash a 3rd-year student at National Law University, Odisha] A post late last year on Money Control highlighted a disquieting trend where certain financial influencers (finfluencers) are endorsing binary-trading platforms that the Reserve Bank of India (RBI) has blacklisted. Social media profiles with significant...
Fast-Track Revolution: SEBI’s Consultation Paper on Reforms in the Debt Securities Market
[Nikita Singh and Aishana are third year BSW LLB students at Gujarat National Law University, Gandhinagar] As a response to the Budget’s (2023-24) emphasis on simplifying regulations, reducing compliance costs, and fostering a business-friendly environment, financial sector regulators are actively reviewing existing frameworks. A dedicated working group i.e. Corporate Bonds and Securitization...
Adani-Hindenburg Saga: Unraveling the Market Turmoil and Regulatory Response
[Dhaval Bothra and Anoushka Das are law students at Symbiosis Law School, Pune] On January 24, 2023, Hindenburg Research LLC released a report accusing the Adani group of fraudulent activities and market manipulation, leading to a significant decline in the share value of Adani companies. The Hindenburg report had a substantial impact on the Indian securities market, causing a stock plunge and...
The Paradigm Shift in AIF Units: Navigating the Transition to Dematerialisation
[Vidisha Tanna and Sonali Nagariya are 5th-year BLS LLB students at SVKM’s Pravin Gandhi College of Law, Mumbai] In the ever-evolving landscape of Indian financial markets, the move towards dematerialisation of units of alternative investment funds (“AIFs”) marks a significant regulatory stride. The SEBI (Alternative Investment Funds) Regulations, 2012 have heralded a new era where AIFs, an...
Handling the Rumour Mill: SEBI’s Market Rumour Verification Reforms
[Gyanesh Mishra is a third year B.B.A LL.B (Hons.) student at National Law University, Odisha] The Securities and Exchange Board of India (“SEBI”), through a consultation paper released on 28 December 2023, proposed substantial reforms to enhance the regime surrounding the verification of market rumours. The reforms propose to change the existing material event criteria under the regulation 30 of...
Revolutionizing Finance: RBI’s Bold SRO Framework Unveiled
[Dhaval Bothra and Rajdeep Bhattacharjee are law students at Symbiosis Law School, Pune] The Reserve Bank of India (“RBI”) recently unveiled the “Draft Omnibus Framework for recognising Self-Regulatory Organisations (“SROs”) for Regulated Entities (“REs”)”, which represents a significant change in recognizing SROs for REs under its authority. The Draft Omnibus Framework outlines the essential...
A Faster Track for Debt Financing: Examining India’s Proposed Public Issuance Framework
[Dhaval Bothra and Rajdeep Bhattacharjee are students at Symbiosis Law School, Pune] The Indian corporate debt market, while exhibiting notable dynamism, grapples with a critical challenge: the stark predominance of private placements. This overreliance on opaque transactions significantly restricts public participation and impedes overall market development. Recognizing this constraint, the...
Smaller Ticket Sizes: Decoding SEBI’s Corporate Bond Market Reform
[Shalin Ghosh is a 2nd year B.A.,LL.B. (Hons.) student at Maharashtra National Law University, Mumbai] The Securities and Exchange Board of India (“SEBI”), through a consultation paper released on 9 December 2023, proposed a slew of reforms to spur the growth of the Indian corporate bond market. One of those reforms concerns permitting companies to issue non-convertible debentures (“NCDs”) and...
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