Tag: SEBI
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Delisting Regulations could make fresh delistings an impossibility
[Posted by Somasekhar Sundaresan] Today’s Business Standard published this column from me on the newly notified SEBI (Delisting of Equity Shares) Regulations, 2009. The new law makes delisting next to impossible.
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Shareholder Activism and Class Action Lawsuits
[Posted by Umakanth Varottil] Recent developments in the Indian corporate sphere – Satyam being the prime example – have raised several calls for instilling the culture of shareholder activism in India. One key form of such activism that keeps companies under check is the availability of class action lawsuits for securities law violations by companies,…
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Pyramid Saimira and the Powers of the SEBI
[Posted by Mihir Naniwadekar] A few weeks ago, the SEBI passed an order (WTM/KMA/60/04/2009) in the Pyramid Saimira case, which raises questions pertaining to insider trading. The order resulted from SEBI’s investigation into the affairs of Pyramid Saimira, highlighted in this post. The particular sequence of events is discussed in several reports, linked here and…
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Staid Capital Markets
[Posted by Umakanth Varottil] Primary capital market activity in the form of public offerings and rights offerings is virtually down to a trickle. While that is not at all surprising considering the somber market conditions, some numbers have been recently reported in the Business Standard as follows: Fund mobilisation through initial public offerings (IPOs) touched…
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Dealing with Duopoly in a Regulated Sector
[Posted by Umakanth Varottil] A recent episode involving determination of fees by commodity exchanges has sparked off an intense debate on the role of a regulator in dealing with a duopoly situation. The regulator here is the Forward Markets Commission (FMC) and the players the two commodities exchanges, NCDEX and MCX. The trigger is a…
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Proposed Change in Takeover Rules: More than Just Satyam
[Posted by Umakanth Varottil] A few days ago, when newspapers reported that SEBI was considering an exemption from the minimum pricing norms in the context of a potential takeover offer on Satyam, the obvious question arose as to how an exception can be made in respect of a single company, and that too one which…
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Pyramid Saimira: SEBI Investigation
[Posted by Umakanth Varottil] A couple of days ago, the media carried reports of SEBI having directed one of the promoters to make an open offer to the shareholders of Pyramid Saimira Theatres Limited at a price that is at a substantial premium to current market price. However, just a day later, SEBI put out…
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Analysis of Recent SAT Rulings on Insider Trading and FUTP Against Dilip Pendse
[Posted by Umakanth Varottil] (The following post is contributed by Bhushan Shah, an Indian lawyer currently pursuing a dual degree LL.M from New York University School of Law and National University of Singapore) The Securities Appellate Tribunal (‘SAT’ or ‘Tribunal’ ) recently set aside two orders (collectively referred as ‘Impugned Orders’ ) passed by market…
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Transparency Measures in SEBI
[Posted by Somasekhar Sundaresan] The Securities and Exchange Board of India (“SEBI”) is taking significant and material steps towards bringing in transparency in its own workings. First, the status of offer documents being processed by SEBI is now online. After repeated complaints about delays in clearing offer documents, SEBI now publishes every week, the status…
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Key Decisions at SEBI Board Meeting
[Posted by Umakanth Varottil] SEBI’s recent board meeting has resulted in certain significant decisions impacting capital markets activity in India as well as SEBI’s own decision-making process. Public/Rights Offerings: Observation Letter When a draft offer document is filed with SEBI, either in a public offering (initial public offering (IPO) or follow-on public offering (FPO)) or…