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Showing posts from November, 2014

SEBI’s Board Meeting Decisions: A move towards ensuring lucidity in the Regime

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The Securities and Exchange Board of India (SEBI), in its Board Meeting held on 19th November 2014 has taken many a decisions to tighten the noose against the wilful defaulters and the wrong doers. SEBI is all set to match the international practices and not let go any wrong doer, who gets undue benefit or attempts to get any undue benefit from the genuine and innocent investors.

Ms. Anjali Aggarwal
Vice President
+919971673336
anjali@indiacp.com Ms. Deepika Vijay Sawhney Partner +919818316936 deepika@indiacp.com



SEBI broadly took the following decisions, which can reap better benefits for the investors’ community and the small shareholders:

SEBI Exercises Review Power: Imposes Rs. 5 lacs fine on Broker set free by Adjudicating Officer

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Securities Laws (Amendment) Act, 2014 has recently amended the SEBI Act, 1992 providing Power of Review through introduction of new section 15-I (3) in SEBI Act. Exercising this newly vested power, SEBI has recently reviewed an Adjudication Order issued against a Mumbai based broker who was alleged of carrying fraudulent self-trades in scrips of a company and violating SEBI regulations and was relieved by the Adjudication officer (“AO”) on no charges being established. The SEBI Member, on reviewing the order in terms of section 15-I (3) has now affirmed the violation of SEBI Provisions and levied a penalty of Rs. 5,00,000 (Rupees Five Lakh).

The newly inserted section 15-I (3) reads as following:

Ms. Deepika Vijay Sawhney Partner +919818316936 deepika@indiacp.com “(3) The Board may call for and examine the record of any proceedings under this section and if it considers that the order passed by the adjudicating officer is erroneous to the extent it is not in the interests of the securiti…

Revised Regulatory framework for NBFC

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The evolution and growth of Non-Banking Finance Company (NBFC) sector has been significant in the recent past. NBFCs form an integral part of the financial sector and therefore are exposed to similar risks and challenges that are faced by other players in the financial sector. Therefore, the need was felt to address the risks, and also to address the concerns of NBFCs. The recommendations made by the Working Group on Issues and Concerns in the NBFC Sector and the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households were considered and the changes in the regulatory framework have been introduced (“Revised Directions”). A. Minimum NOF Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com 1. As per Section 45-IA of the RBI Act, 1934, all the NBFCs are required to obtain a Certificate of Registration (CoR) from the RBI to commence/carry on business of NBFI. The said section also prescribes the minimum Net Owned Fund (NOF) requirement. E…