[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...
Navigating the Waters of Change: SEBI’s Instant Settlement Plan and Foreign Investor Concerns
[Arihant Sethia is a student at the Gujarat National Law University] In the fast-paced world of financial markets, where time is often equated with value, the Securities and Exchange Board of India (SEBI) has set the stage for a groundbreaking transformation. The proposed shift from the T+1 settlement system to an instantaneous settlement framework represents a bold leap into the future...
A Breath of Fresh Air for Stressed Debts? Demystifying SEBI’s Consultation Paper on SSFs
[Mahim Raval is a 3rd year B.Sc., LL.B. (Hons.) student at Gujarat National Law University in Gandhinagar] India’s financial landscape has been grappling with the persistent burden of stressed assets, hampering the flow of credit and impacting economic growth. While the Reserve Bank of India (“RBI”) has introduced multiple schemes to resolve the burgeoning non-performing assets of banks, the...
Restricting Stock Brokers from Non-Securities Business: SEBI’s Approach
[Vaishnavi Srinivasan and Philip Oommen are lawyers based in Mumbai, and graduates of the National Institute of Securities Markets] Rule 8(3)(f) of the Securities Contracts (Regulation) Rules, 1957, (“SCRR”) is one of the lesser-known, yet crucial provisions in securities regulation. From the placing of restrictions on loans and advances to the prohibition of digital gold sales, rule 8(3)(f) is...
SEBI’s Proposal to Link Voluntary Delisting to a Fixed Price is Meritorious
[Aadya Conjeevaram is a third-year undergraduate student at the West Bengal National University of Juridical Sciences, Kolkata] The Securities and Exchange Board of India (“SEBI”) through a consultation paper (“Consultation Paper”) proposed significant changes to enhance the delisting process. A sub-group, led by Mr. Keki Mistry and comprising members from the Primary Market Advisory Committee...
Inside SEBI’s Consultation Paper: Reshaping SSFs in Indian Finance
[Harsh Mittal and Sidhanth M K Majoo are 3rd year B.B.A. LL.B. (Hons.) students at National Law University, Odisha] The Indian financial system has long been burdened by the prevalence of stressed assets, necessitating substantial capital infusions into banks, non-banking financial companies (“NBFCs”), and other financial institutions. These stressed assets have constrained the ability of...
Small and Medium REITs: Debunking Fractional Ownership and the Way Forward
[Aayush Ambasht and Rajdeep Bhattacharjee are 3rd Year BBA LLB (Hons.) students at Symbiosis Law School, Pune] In its board meeting on November 25, 2023, the Securities Exchange Board of India (‘SEBI’) approved amendments to the SEBI (Real Estate Investment Trusts, Regulations, 2014) for facilitating a regulatory framework for Small and Medium Real Estate Investment Trusts (‘SM REITs’). Through...
Flexible Trading Plans: SEBI’s Consultation Paper on Insider Trading Regulations
[Manas Rohilla and Smruti Kulkarni are 3rd year B.A., LL.B. (Hons.) students at the Gujarat National Law University, Gandhinagar] Regulators impose various restrictions and obligations on insiders of a company, such as mandatory disclosure of trades, trading window closures, contra-trade prohibitions, and the like, to prevent insider trading. However, these restrictions may also pose challenges...
Revisiting the Ban on Futures Trading of Agri-Commodities in India
[Shuchi Agrawal is a research fellow in the Corporate Law and Financial Regulation team at Vidhi Centre for Legal Policy] On 27 October 2023, the Securities and Exchange Board of India (“SEBI”) extended the ban on futures trading in seven agricultural commodities for a year, that is, until 20 December 2024. Wheat, paddy (non-basmati), chana, mustard seeds, soya bean, crude palm oil and moong are...
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