[Arushi Gupta is a IV year student at National Law University Odisha] With the recent order of the Securities and Exchange Board of India (SEBI) imposing a fine on the promoter entities of YES Bank, the much contentious issue of the definition of encumbrance has again taken the centre stage. This post aims to analyse the recent order of SEBI in light of the SEBI (Substantial Acquisition of...
6th GNLU Moot on Securities and Investment Law 2020
[Announcement from the organisers of the GNLU Moot on Securities and Investment Law] About the Organiser Gujarat National Law University is a premier university of law situated in Gandhinagar, Gujarat seeking to promote research-based education among its students by way of providing excellent education, and opportunities in various co-curricular and extra-curricular activities for holistic growth...
SEBI’s Proposed Framework for Corporate Bonds and Debenture Trustees
[Rashmi Birmole is a III year B.A., LL.B. student at ILS Law College, Pune] Infrastructure Leasing & Financial Services (“IL&FS”), a non-banking finance company (“NBFC”) belonging to a sub-category of systemically important non-deposit accepting core investment companies was, at the time, engaged in financing and developing infrastructure projects. In June 2018, the collapse of IL&FS...
Examining the Legal Nature of Commercial Papers: Securities or Money Market Instruments?
[Priyanka Sunjay is an associate at L&L Partners Law Offices. The author thanks Jay Parikh and Varun Kumar for their inputs] On 22 October 2019, the Securities Exchange Board of India (“SEBI”) issued a circular titled ‘Framework for Listing of Commercial Paper’ (“SEBI Circular”) in order to enable listing and trading of commercial papers on stock exchanges. This poses certain important...
Liability of Issuers for Misleading Advertisement in a Public Issue of Securities
[Neha Sinha is a 3rd Year B.A. LL.B. student at National University of Study and Research in Law (NUSRL), Ranchi] In an order dated February 26, 2020, the Securities and Exchange Board of India (SEBI) imposed penalty on Muthootu Mini Financiers Ltd. (MMFL) in a matter relating to misleading advertisement made to the public at large regarding the issue of debt securities. The matter was decided by...
SEBI Introduces Greater Transparency in the AIF Space
[Vaneesa Agrawal is the founder and Rishi Ahuja an associate at Thinking Legal] The Securities and Exchange Board of India (“SEBI”) has, through a Circular dated February 5, 2020 (“Circular”), issued disclosure standards for the growing Alternative Investment Funds (“AIFs”) space. The Circular was preceded by a Consultation Paper dated December 4, 2019. SEBI has introduced performance...
SEBI Portfolio Management Regulations, 2020: Towards an Investor Friendly Regime
[Anukrati Mishra is a final year B.A. LLB (Business Law Hons) student at Institute of Law, Nirma University, Ahmedabad] On 16 January 2020, the Securities and Exchange Board of India (SEBI) undertook the first overhaul of the regulations governing portfolio management services (PMS) in over two decades by issuing the SEBI (Portfolio Managers) Regulations, 2020. The new regulations have been...
SEBI Guidelines for Rights Issue of REIT Units
[Rongeet Poddar is a 5th year student at the West Bengal National University of Juridical Sciences] Real Estate Investment Trusts (REIT) can be defined as entities that own properties in the real estate sector and finance their development. Structurally, a REIT is identical to an ordinary trust. The real estate properties are owned by the REIT. Companies or limited liability partnerships (LLPs)...
Impact of Defaults by Stockbrokers: Are Investors the Biggest Losers?
[Shivam Tiwari is a final year law student pursuing B.A. LL.B (Business Law Hons.) at National Law University, Jodhpur. This post was earlier published in the Indian Review of Corporate and Commercial Laws] The Indian financial market has witnessed an increasing number of defaults by stockbrokers in the past few years. The Securities and Exchange Board of India (“SEBI”) has debarred brokers like...
Front Running and Circumstantial Evidence (Matrimonial Websites Including)
Securities frauds such as insider trading and front running raise insurmountable hurdles for regulators because there is often no evidence, not even a smoking gun. Hence, regulators bear the burden of painstakingly piecing together several bits of circumstantial evidence that, as a whole, might be sufficient to convince a court or tribunal of the elements of a breach of the appropriate...
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