[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...
SAT Ruling in the Zee Entertainment Case
In a ruling late last month, the Securities Appellate Tribunal (SAT) reversed an order of the chairperson of the Securities and Exchange Board of India (SEBI) dated August 14, 2023 in the case involving Zee Entertainment Enterprises Limited (ZEEL). The SEBI order had barred Mr. Punit Goenka from holding the position of director or key managerial personnel in ZEEL or other related companies. The...
Finfluencers in the Regulatory Crosshairs: SEBI’s Baap of Chart Interim Order
[Sourav Paul is a fourth-year undergraduate student at the West Bengal National University of Juridical Sciences, Kolkata] The rapid expansion of social media has significantly impacted securities markets, with the emergence of finfluencers, who provide investment advice on social media platforms. These finfluencers have a huge following, primarily comprising retail investors, and exert more...
Unveiling SEBI’s Game-Changing Market Rumours Amendment
[Raashi Sanjay Sarupria is a 3rd-Year B.B.A., LL.B. (Hons.) student at the Gujarat National Law University] The Securities and Exchange Board of India (“SEBI”) has implemented significant amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”), effective from October 1, 2023. The SEBI (Listing Obligations and Disclosure Requirements) (Second...
KPIs in IPO Documents – A Year In Review
[Suchisubhra Sarkar, a graduate of the West Bengal National University of Juridical Sciences, is a capital markets practitioner with over four years of experience at leading law firms.] In the aftermath of poor post-listing performance by technology companies, the Securities and Exchange Board of India (“SEBI”) took cognizance of the need to standardize and disclose valuation metrics. In...
SEBI’s Quest for Transparency: Decoding the Disclosure Mandate and the Impact on FPIs
[Palash Varyani is a 3rd-year B.A., LL.B. (Hons.) student at the Institute of Law, Nirma University, Ahmedabad] In a recent development, the Securities and Exchange Board of India (SEBI) has mandated foreign portfolio investors (FPIs) who meet the stipulated criteria to demonstrate an unprecedented level of transparency regarding their beneficial ownership structures. This disclosure requires...
Navigating Regulation 62A of SEBI’s Listing Regulations: Implications on India’s NCD Market
[Tanishq Vijay Vargiya and Vaibhav Nishad are 3rd year students at the Gujarat National Law University, Gandhinagar] The Securities and Exchange Board of India (SEBI) has on 21 September 2023 published the SEBI (Listing Obligations and Disclosure Requirements) (Fourth Amendment) Regulations, 2023 (the ‘Amendment’), by which it introduced regulation 62A of the SEBI (Listing Obligations and...
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