TagSecurities Regulation

SEBI Greenlights Pledging of Equity Investments by Alternative Investment Funds

[Prachya J. Bhattacharya and Sahsransh Pandey are 3rd year students at Gujarat National Law University, Gandhinagar] In an effort to foster the consistent growth of alternative investment funds (AIFs), the Securities & Exchange Board of India (SEBI) introduced a consultation paper on 2 February 2024. The paper aims to allow AIFs to create encumbrance on their equity holdings in infrastructure...

Navigating the Maze: Scrutinising SEBI’s Framework for Short Selling

[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...

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...

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...

Dematerialization Mandate for Private Companies: Navigating Transparency & Challenges

[Bhabesh Satapathy and Harsh Mittal are third year B.B.A. LL.B. (Hons.) students at National Law University, Odisha] On October 27, 2023, the Ministry of Corporate Affairs (“MCA”) ushered in a significant change with the introduction of rule 9B through the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 (“PAS Rules”) The amendment is in harmony with the overarching...

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...

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