TagSecurities Regulation

Sensitization: The Key to Implementation of Insider Trading Regulations

[Ambika Mehrotra is a Manager at Vinod Kothari & Company and can be contacted at [email protected]] Background of the Regulations The strong and decisive steps taken by the Securities and Exchange Board of India (SEBI) with respect to insider trading have attracted a great deal of attention over the last couple of months. The modifications to the existing SEBI (Prohibition of Insider...

SEBI Consults on Shares with Differential Voting Rights

Dual class share (DCS) structures are becoming more popular around the world. While they have been existent in several companies in the United States (US) for some decades now, they were accompanied sometimes by a sense of unease among investors and regulators due to the disparity they create between economic rights (level of ownership) of shareholders and their control rights (voting). Since the...

Supreme Court on Relevance of Section 15J of SEBI Act

[Rakshita Poddar and Jitesh Maheshwari are associates at Mindspright Legal] The Supreme Court of India has recently passed a landmark judgment in Adjudicating Officer (“AO”), SEBI v. Bhavesh Pabari by which it has overruled its previous judgment in SEBI v. Roofit Industries Ltd. and explained the relevance of section 15J of the Securities and Exchange Board of India Act, 1992. The Securities and...

Direct Overseas Listing: Assessing the Viability of Proposed Reforms

[Suneha Kasal and Swini Khara are III year law students at NALSAR University of Law, Hyderabad] Considering the ongoing evolution and internationalization of capital markets across the globe and change in the complexion of Indian companies, the Securities and Exchange Board of India (SEBI) recently acknowledged that the current regulatory framework on ‘direct overseas listing of equity shares’...

Amendment to Insider Trading Regulations: An Incentive for Insiders?

[Bhavin Gada, Soumya Shanker and Mehak Gupta are with M/s Economic Laws Practice, Advocates and Solicitors. The views of the authors are personal] On 31 December 2018, the Securities and Exchange Board of India (“SEBI”) issued an amendment to the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”). The amendment was pursuant to the recommendations made in the...

SEBI Revisits the Settlement Mechanism

[Ambika Mehrotra is a Manager in the Corporate Law Services Division of Vinod Kothari & Company] Background to the SEBI Settlement Mechanism The settlement mechanism for violation of laws related to securities had been introduced in India in 2007. Further, in order to factor in various issues and aspects relating to its enforcement mechanism, the Securities and Exchange Board of India...

Disclosure Regarding Significant Beneficial Owners: Another Stride from SEBI

[Ambika Mehrotra is a Manager at Vinod Kothari & Company in its Corporate Law Services Division] In the interest of investors in the securities market and with a view towards better corporate governance, the Securities and Exchange Board of India (“SEBI”) has taken steps to widen the scope of compliances for listed entities. Accordingly, to bring in more transparency for investors, SEBI has...

Prospects of Regulation of Initial Coin Offerings by SEBI

[Aishwarya Singh is a 5th year law student at Jindal Global Law School, Sonipat] The Reserve Bank of India (RBI) had, by way of a circular, ring-fenced banks from dealing with cryptocurrencies. However, the status of cryptocurrencies in India is far from decided. The RBI circular has been recently challenged in the Supreme Court. On the other hand, the Government had also constituted an Inter...

Analysing Some Insider Trading Implications For M&A Transactions

[Priya Garg is a 5th year student at West Bengal National University of Juridical Sciences (WBNUJS), Kolkata] Consequences of Creating the Due Diligence Exception to the Bar on the Communication of UPSI For the first time, under regulation 3 of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT, 2015”), communication of unpublished price sensitive information (“UPSI”) per se has...

Will SEBI Succeed in Creating a Vibrant Bond Market?

[Rajeev Jhawar is an Executive at Vinod Kothari Consultants Pvt Ltd] As part of the budget this year, India sought to expand its bond market beyond the traditional ambit of sovereign debt. Pursuant to this, Securities and Exchange Board of India (SEBI) has initiated efforts to diversify borrowings of Indian corporates by mandating them to raise at least a quarter of their incremental funds from...

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