Tag: Securities Regulation
-
INSIDER TRADING REGULATIONS – HIGHLIGHTS TO THE AMENDMENTS AND SOME POSERS
1) SEBI has amended the SEBI Prohibition of Insider Trading Regulations 1992 vide a notification dated 19th November 2008 which I briefly highlighted here. There are some far reaching amendments. 2) An important amendment is to the definition of “insider”. As I mentioned earlier, no word has been added or deleted but by dropping a…
-
Thoughts on the ASBA process – Part I
(The following post comes to us from Prerak Ved, an advocate with Crawford Bayley & Co.) SEBI has introduced the system of ASBA (Applications Supported by Blocked Amount) vide its circulars dated July 30, 2008 and operationalised the same vide its circular dated August 29, 2008 (“ASBA Circulars”). It is applicable only to book built…
-
SEBI moves to tighten insider trading norms by prohibiting opposing transactions
In an earlier post, Mihir had remarked that while arguments for legalizing insider trading are interesting, there is a long way to go before they are actually accepted by legal systems. SEBI’s recent move to tighten insider trading norms is a case in point. ET reports that SEBI will soon amend its regulations to ban…
-
Some Thoughts on the P-Note Volte Face
In an earlier post, Mihir highlighted some key decisions taken by SEBI earlier this week. One decision regarding P-Notes merits greater discussion. A little less than a year ago (October 16, 2007 to be precise), SEBI introduced bold measures to curb the use of participatory notes (P-notes) and other offshore derivative instruments (ODIs) by foreign…
-
SEBI Board meeting of 6th October: Important Decisions
In a meeting earlier today, the SEBI Board took several decisions which may have an important impact. 1. The Board decided to encourage promotion of dedicated exchanges/platforms for trading of securities for small and medium enterprises. Enterprises with a post issue paid up capital of less that Rs. 25 crore would be listed on such…
-
The Effectiveness of IPO Grading
On April 30, 2007, the SEBI (Disclosure and Investor Protection) Guidelines were amended to introduce the novel concept of IPO grading. Following the insertion of clause 2.5A, companies going in for an IPO are required to obtain grading from at least one credit rating agency. Further, all grades obtained are required to be disclosed in…
-
Short Selling Restrictions Gain Traction
Due to allegations that the stock price of several financial institutions involved in the current crisis were beaten down by short sellers, several jurisdictions have recently introduced greater curbs on short selling. The U.S. Securities and Exchange Commission (SEC) has introduced temporary bans on short selling in securities of 799 financial companies (see this report…
-
Simplifying Qualified Institutional Placements and Rights Issues
(In the following post, Shantanu Naravane examines recent changes to the SEBI DIP Guidelines made with a view to promoting qualified institutional placements and rights issues) The concept of Qualified Institutional Placements [“QIP”] was introduced in India, with effect from May 8, 2006, by virtue of an amendment to the SEBI (Disclosure & Investor Protection…
-
Stock Options for Nominee Directors
Nominee directors on Indian corporate boards are a unique category of directors. They are usually are nominated by a bank, financial institution or other large investor to be a director on companies in which such nominating entities have invested. Sometimes, nominee directors also find themselves in an unenviable position – in case of a conflict…
-
Promoters’ Contribution: SAT Ruling in the Reliance Power Case
A few days ago, the Securities Appellate Tribunal (SAT) passed its order in the Reliance Power IPO Case. This is on an appeal from the decision of SEBI (that we had posted about earlier on this blog). I thank one of our readers who sent in a review of the SAT decision, which I reproduce…
