SEBI announced a slew of decisions taken at its board meeting yesterday, which are excpected to have an impact on the capital markets, both primary and secondary. International Financial Services Centres (IFSCs) SEBI’s board has approved the SEBI (International Financial Services Centres) Guidelines, 2015, which will help establish IFSCs such as the proposed Gujarat International Finance Tec-City...
Dissecting the Convergence of the Securities Markets and the Commodities Markets Regulators
[The following guest post is contributed by Abhilasha Mondal, a 5th year student at the National Law School of India University, Bangalore. She can be contacted at [email protected].] The Finance Bill, 2015-16, actualises the merger between the Securities and Exchange Board of India (“SEBI”) and the Forward Markets Commission (“FMC”). The unification of the...
SAT Order in the DLF Case: Controlling SEBI’s Punitive Vehemence
[In an earlier post, I had offered some initial overview and commentary on the SAT Order in the DLF IPO Case. In the following post, Vinod Kothari offers another perspective that focus on certain specific aspects of the order and analyzes their impact on SEBI’s role as an enforcer of securities regulation. The author can be contacted at [email protected].] The order of the Securities...
SAT Order in the DLF IPO Case
As readers may recall, the adequacy of disclosures in the IPO prospectus pertaining to DLF Limited was called into question in a series of investigations by the Securities and Exchange Board of India (SEBI). The process culminated in SEBI passing an order on October 10, 2014 finding that the disclosures were inadequate and thereby restraining DLF, its directors and CFO from buying or selling...
Regulating the Crowdfunding Intermediary: The Funding Portals
[The following guest post is contributed by Nikunj Agarwal, who is a 3rd year student pursuing the B. A. LL.B. (Hons.) course at RML National Law University, Lucknow. He can be contacted at [email protected]. In this post, the author considers the regulation of a specific type of intermediary involved in crowdfunding, viz. the funding portals. This follows a previous guest post on a related...
Regulating Equity Crowdfunding in India
[The following guest post is contributed by Arjya Majumdar, who is an Assistant Professor at the Jindal Global Law School. He can be contacted at [email protected]] In the aftermath of the 2008 financial crisis, small businesses found it increasingly difficult to raise funds. As a response, crowdfunding has emerged as a viable alternative for sourcing capital to support innovative...
Budget 2015: Financial Markets
The Budget makes some proposals to boost the financial markets in India, both in the debt and equity segments, but arguably the reforms are only incremental and many not necessary result in drastic expansion of the markets. Corporate Bonds The first proposal is to give a fillip to the bond markets. As a co-author and I have observed in an earlier paper, the equity markets in India have developed...
Bonus Debentures: Features and Implications
[The following post is contributed by Prachi Narayan of Vinod Kothari & Company. She can be contacted at [email protected].] Introduction The reward of being a shareholder is singular: share in profits of the company. A few widely known forms of corporate rewards include cash dividends, bonus shares, preference shares, bonds, debentures, warrants and options, of which cash dividends and...
Wilful Defaulters: A Further Analysis
[The following post is contributed by Prachi Narayan of Vinod Kothari & Company. She can be contacted at [email protected]. A previous post on the topic discusses SEBI’s recent proposal towards “wilful defaulters”. This guest post discusses in detail the current regime imposed by the RBI and also comments briefly on the SEBI proposal as well as relevant case law on the topic] The...
SEBI’s New Insider Trading Regulations Notified
Changes to the insider trading regime in India have been in the offing for quite some time now, and were the subject-matter of a report under the chairmanship of Justice N.K. Sodhi. Yesterday, SEBI notified the SEBI (Prohibition of Insider Trading Regulations), 2015 that take into account the committee’s recommendations as well as the subsequent public consultation. We will have the opportunity...
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