[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...
SAT Ruling in the Zee Entertainment Case
In a ruling late last month, the Securities Appellate Tribunal (SAT) reversed an order of the chairperson of the Securities and Exchange Board of India (SEBI) dated August 14, 2023 in the case involving Zee Entertainment Enterprises Limited (ZEEL). The SEBI order had barred Mr. Punit Goenka from holding the position of director or key managerial personnel in ZEEL or other related companies. The...
Finfluencers in the Regulatory Crosshairs: SEBI’s Baap of Chart Interim Order
[Sourav Paul is a fourth-year undergraduate student at the West Bengal National University of Juridical Sciences, Kolkata] The rapid expansion of social media has significantly impacted securities markets, with the emergence of finfluencers, who provide investment advice on social media platforms. These finfluencers have a huge following, primarily comprising retail investors, and exert more...
Unveiling SEBI’s Game-Changing Market Rumours Amendment
[Raashi Sanjay Sarupria is a 3rd-Year B.B.A., LL.B. (Hons.) student at the Gujarat National Law University] The Securities and Exchange Board of India (“SEBI”) has implemented significant amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”), effective from October 1, 2023. The SEBI (Listing Obligations and Disclosure Requirements) (Second...
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