Introducing more stringent measures for brokers who make illegal profits, SEBI yesterday introduced a galaxy of precautionary measures to hamper brokers from making illegal profits. is The Securities and Exchange Board of India (SEBI) today said that it would ease the takeover process for banks under the recently-introduced bankruptcy code from its strict share pricing rules, adding that such transactions will be governed only by RBI regulations.
The newly introduced SEBI takeover laws will ease out the takeover process covered under the bankruptcy rule. As a matter of fact, these laws will be governed by RBI.
SEBI chairman Ajay Tyagi said, “Share price during stake sale under NCLT will be not bound by SEBI rules”.
“Diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives.” Funds like hedge funds, PIPE funds are registered under this category.
“The decision was put forth initially by bankers to cut losses,” Rajnish Kumar, MD of SBI said. “The bankers would not be required more than the book value of shares,” Kumar added.
With NSE coming under the trap of SEBI, which has issued a showcause notice to the NSE and 14 other key management personnel.
Various Important takeaways from SEBI meeting
Not only this, SEBI has also tracked down many brokers who make unfair gain trades.
The Uday Kotak committee has been given the charge of making the corporate governance standards more stringent.
Moreover, rules related to removal of independent directors will be updated in the Companies Act, 2013.
Special allowances will be allowed for participation in category III alternate investment funds (AIFs).
P-note norms
On P-notes, stringent regulations will be formulated and implemented. Additionally, the government will also levy extra fees on investments via P-notes.
A regulatory fee will be charged on P-notes issued by overseas derivative instruments (ODIs). “The regulator is not in favor of completely banning the P-notes,” Tyagi said.
