[Jitesh Maheshwari is an associate at Mindspright Legal and Rakshita Poddar is a lawyer based in Mumbai] Introduction The Supreme Court of India in its recent landmark judgement of SEBI v. Rakhi Trading Pvt. Ltd., delivered by Justice Kurian and Justice Banumathi, has overruled several orders of the Securities Appellate Tribunal which had held that synchronised trades are illegal only when they...
Why SEBI is Failing at Regulating Insider Trading in India
[Bhavya Bhandari is currently pursuing an LLM. in Corporation Law at NYU School of Law. She can be reached at [email protected]. The Indian securities market regulator has been criticized in the last two decades for its failure to investigate and prosecute perpetrators of insider trading. Even when the perpetrators are caught and punished, the penalty is often so low that the regulations have lost...
Crossholding in Credit Rating Agencies: An Insight into the SEBI Consultation Paper
[Kashish Jain is a 4th year B.B.A L.L.B (Hons.) student at Jindal Global Law School in Sonipat, Haryana] A credit rating agency (CRA) is a service provider that assesses the creditworthiness of an entity (issuer) or a debt instrument (e.g., asset-backed securities). Typically, it expresses an opinion that is based on processing information and conducting research. CRAs seek to reduce the...
Finance Bill 2018: Amendment to Securities Laws
[Sumit Agrawal is a regulatory lawyer and ex-SEBI official. Views are his own. Twitter: @sumit12agrawal] During his Budget Speech 2018, the Finance Minister spoke about amending the Securities and Exchange Board of India Act 1992 (“SEBI Act”), the Securities Contracts (Regulation) Act 1956 (“SCRA”), and the Depositories Act 1996, to streamline adjudication procedures and to provide for penalties...
Amendments to the Regulatory Framework for REITs And InvITs: An Analysis
[Jubair Bhati and Anjali Choudhary are 5th year B.B.A., LL.B. (Hons.) students at School of Law, Raffles University, Neemrana (Rajasthan)] The regulatory framework for real estate investment trusts (“REITs”) and infrastructure investment trusts (“InvITs”) was first introduced by the Securities and Exchange Board of India (“SEBI”) in 2014. However, these structures did not experience a great...
Cryptocurrency Investment Vehicles in India: Possibilities and Challenges – Part 2
[Job Michael Mathew is a 4th year BA.LL.B (Hons) student at NALSAR University of Law. The first part is available here.] Commodity Mutual Funds and Exchange Traded Funds? In light of the above discussion, an investment vehicle like a mutual fund that invests in cryptocurrency and issues units of the fund in return for investing in the fund can be termed a commodity mutual fund since the...
Cryptocurrency Investment Vehicles in India: Possibilities and Challenges – Part 1
[Job Michael Mathew is a 4th year BA.LL.B (Hons) student at NALSAR University of Law] Introduction In October 2009, for every dollar one could purchase 1309 bitcoins. At the beginning of 2017, the price of one bitcoin was close to $1000. It attained $5000 in October and nearly doubled in November. In December it rose to $20000 in some exchanges. This post does not attempt to document the reasons...
Side-pocketing: A plausible liquidity management tool for the Indian mutual fund industry
[Param Pandya is a Research Fellow in the Corporate Law and Financial Regulation vertical at Vidhi Centre for Legal Policy. The author is thankful to Prof. Jayanth R Varma, Indian Institute of Management, Ahmedabad for his valuable comments. Views are personal. This post was first published in the Oxford Business Law Blog] An illiquid asset may lead to reduced returns and increased redemptions in...
More on SEBI’s Order in the Price Waterhouse Case
In an earlier post, Jayant Thakur had discussed the order of the Securities and Exchange Board of India (SEBI) passed against Price Waterhouse last week. In addition, readers may find the following two further pieces on the legalities of the SEBI order of relevance: In a column titled “SEBI’s ban onPwC:Learnings for an auditor” in Bar & Bench, Kanwardeep Singh examines SEBI’s...
Implications of SEBI (Intermediaries) (Amendment) Regulations, 2017
[Rishabh Chawla is a 5th year B.A., LL.B.(Hons.) Student, National Law Institute University in Bhopal] Introduction On May 26, 2008, the Securities and Exchange Board of India (SEBI) notified the SEBI (Intermediaries) Regulations, 2008 (Regulations). They provide for a comprehensive regulation over all intermediaries on various requirements such as registration, code of conduct, procedure for...
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