More Stories

Informist, Tuesday, Oct. 1, 2024

--No decision by SEBI board on equity F&O tightening measures

MUMBAI – The Securities and Exchange Board of India either did not put up before its board for approval on Monday the proposals to substantially tighten the equity derivatives framework or the board preferred to defer it. Many equity futures and options traders were expecting the proposals made by SEBI in its Jul. 30 consultation paper to be put before the SEBI board and get approved. The press release issued by SEBI late Monday after the board meeting made no mention of the proposed changes in the equity derivatives framework.

However, the SEBI board approved several other measures such as faster rights share issue, widening of the scope of connected persons under insider trading norms, mandating an additional option of blocked amount trading or 3-in-1 trading accounts for clients of qualified stock brokers, and relaxation in norms for investment advisers and research analysts.

In another measure, the SEBI board approved inclusion of summary proceeding provisions in the intermediaries regulations. This is aimed at enhancing SEBI's ability to act in an efficient manner in certain cases of violations. The summary proceedings will apply to cases such as expulsion of member by stock exchanges, termination of depository participant by a depository, non-traceability of a person at physical address, non-payment of SEBI fees, and failure to submit periodic reports for three consecutive periods.

The SEBI board also approved measures to tweak regulations for merchant bankers and on share buybacks. Merchant bankers acting as underwriters would need to fulfil their underwriting obligations before finalising the basis of allotment in a public issue. In the buyback norm, the promoters' shares will be allowed to be excluded from entitlement ratio calculations if they opt out of buyback and disclose the same.

The capital market regulator also got board approval to replace existing informal guidance scheme with a new one with an expanded scope. The new informal guidance scheme will allow regulated entities such as stock exchanges, clearing corporations, depositories and managers of pooled investment vehicles to seek informal guidance.  End

Reported by Rajesh Gajra

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.