Tag: SEBI
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Regulating Equity Crowdfunding in India
[The following guest post is contributed by Arjya Majumdar, who is an Assistant Professor at the Jindal Global Law School. He can be contacted at abmajumdar@jgu.edu.in] In the aftermath of the 2008 financial crisis, small businesses found it increasingly difficult to raise funds. As a response, crowdfunding has emerged as a viable alternative for sourcing…
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Insider Trading and the Risks of Due Diligence Access
[The following post is contributed by Aparna Ravi, a researcher at the Centre for Law and Policy Research, Bangalore and previously a capital markets lawyer in London. She can be contacted at aparna.ravi@clpr.org.in She presents an interesting critique of the new SEBI insider trading regulations on matters relating to due diligence set in the backdrop of international…
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Wilful Defaulters: A Further Analysis
[The following post is contributed by Prachi Narayan of Vinod Kothari & Company. She can be contacted at prachi@vinodkothari.com. A previous post on the topic discusses SEBI’s recent proposal towards “wilful defaulters”. This guest post discusses in detail the current regime imposed by the RBI and also comments briefly on the SEBI proposal as well…
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SEBI’s New Insider Trading Regulations Notified
Changes to the insider trading regime in India have been in the offing for quite some time now, and were the subject-matter of a report under the chairmanship of Justice N.K. Sodhi. Yesterday, SEBI notified the SEBI (Prohibition of Insider Trading Regulations), 2015 that take into account the committee’s recommendations as well as the subsequent…
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SEBI’s Proposal on “Wilful Defaulters”
Over the years, the Reserve Bank of India (RBI) has significantly tightened the regime relating to “wilful defaulters” who are declared as such through a process stipulated by the RBI. Upon such a declaration, the regulatory regime of the RBI effectively stifles the ability of a wilful defaulter from raising further bank financing. However, realisation…
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SEBI Discussion Paper on “Revising the Capital Raising Process”
There is a concern that issuers have resorted to private placements and qualified institutional placements (QIPs) to raise capital from specified investors rather than to public offerings of shares. This is due to the excessive burden and costs associated with a public offering of shares. Being cognizant of this tendency, SEBI has proposed measures to…
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Year-End Reforms from SEBI
We wish our readers a very happy 2015! The end of 2014 was marked by a flurry of announcements from SEBI, some of which are briefly discussed in this post. Re-Classification of Promoters as Public The concept of “promoters” is quite significant in the Indian context as it is relevant for various purposes. While the…
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New Delisting Regulations – tougher rather than easier
New regulations on delisting have been approved by SEBI. I wrote a column on December 1, 2014 (print edition) of the Business Standard, on how a new element of requiring at least 25% of the public shareholders as of a certain date to have participated in selling their shares, would nudge toward counter-productive outcomes. I…
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SEBI’s Proposal for a Dividend Policy
Last week, media reports indicated that SEBI is considering imposing a requirement on listed companies to come out with a dividend policy that will compel (or at least nudge) profitable cash-rich companies to distribute their profits to shareholders. The introduction of more stringent requirements on companies to state their dividend policies will introduce a great…
