SEBI Establishes Committee To Review Ownership And Economic Structure Of Clearing Corporations
6 months, 2 weeks ago

SEBI Establishes Committee To Review Ownership And Economic Structure Of Clearing Corporations

Live Law  

The Securities and Exchange Board of India has formed an ad-hoc expert committee chaired by Usha Thorat, a former Deputy Governor of the Reserve Bank of India. The Gandhi Committee's 2018 report emphasized the need for a dispersed and widely held ownership structure for Market Infrastructure Institutions, including clearing corporations, due to their high-risk nature. The committee advised against the listing of clearing corporations to avoid conflicts of interest and ensure their primary focus remains on risk management rather than profit maximization. The exponential growth in derivatives trading, which inherently carries higher risk, needs a risk management framework within clearing corporations. Globally, clearing corporations like the Depository Trust & Clearing Corporation and Euroclear operate with diversified shareholding structures, while others, like LCH and SGX-DC, remain subsidiaries of parent exchanges.

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SEBI Tightens Rules on Offshore Derivative Instruments to Boost Transparency
6 days, 15 hours ago

SEBI Tightens Rules on Offshore Derivative Instruments to Boost Transparency

Deccan Chronicle  

The Securities and Exchange Board of India has introduced significant changes to the regulations governing Offshore Derivative Instruments issued by Foreign Portfolio Investors. A circular issued on Tuesday outlined the new requirements aimed at enhancing market transparency and stability.Under the revised framework, FPIs are prohibited from issuing ODIs with derivatives as their underlying assets or using derivatives to hedge their …

Mint Explainer: Why Sebi seeks to diversify clearing corporations’ ownership
2 weeks, 5 days ago

Mint Explainer: Why Sebi seeks to diversify clearing corporations’ ownership

Live Mint  

The Securities and Exchange Board of India recently proposed a shift to make clearing corporations in India’s equity markets more independent. Currently, clearing corporations are fully owned by their parent stock exchanges, creating potential conflicts of interest, as their financials are tied to the exchange. These are some of the prominent clearing corporations in India: NSE Clearing Ltd, a wholly …

Sebi proposes revisions to custodian regulations
1 month, 1 week ago

Sebi proposes revisions to custodian regulations

Live Mint  

The Securities and Exchange Board of India has issued a consultation paper seeking feedback on proposed updates to the Sebi Regulations, which govern the operations of custodians in the Indian securities market. Given the importance of custodians in ensuring smooth market operations, especially for institutional investors, the consultation paper proposes several changes to enhance regulatory oversight and operational resilience. Sebi …

Sebi's Demat Reform: A Step Towards Financial Inclusion for Collective Entities
2 months ago

Sebi's Demat Reform: A Step Towards Financial Inclusion for Collective Entities

Live Mint  

India is taking significant steps towards financial inclusion and regulatory simplification with the Securities and Exchange Board of India (Sebi) proposing a key reform for non-corporate entities. The proposal allows Associations of Persons (AoPs) to open demat accounts in their names for holding non-equity securities. This reform aims to enhance the ease of doing business for entities such as housing …

SEBI Mandates Direct Transfer Of Securities To Client Demat Accounts
6 months, 2 weeks ago

SEBI Mandates Direct Transfer Of Securities To Client Demat Accounts

Live Law  

The Securities and Exchange Board of India has issued new guidelines mandating the direct transfer of securities to clients' demat accounts by clearing corporations. The existing practice involves brokers pooling securities received in payout and then crediting them to respective client demat accounts. Under the new guidelines, clearing corporations are required to provide a mechanism for trading members/clearing members to …

‘Sebi has to balance development, regulation, investor protection’
1 year, 1 month ago

‘Sebi has to balance development, regulation, investor protection’

Live Mint  

Mumbai: The role of the Securities and Exchange Board of India is to maintain a fine balance between regulating and developing markets, and protecting investor interest, a senior official at the markets regulator said on Thursday. Trust me it’s not an easy walk, we do it every day,” said Amarjeet Singh, whole-time member of Sebi, while addressing the Gatekeepers of …

SEBI Mandates Additional Disclosures By Foreign Portfolio Investors
1 year, 3 months ago

SEBI Mandates Additional Disclosures By Foreign Portfolio Investors

Live Law  

The Securities and Exchange Board of India has issued a circular aimed at promoting heightened transparency among Foreign Portfolio Investors meeting specific criteria. Although PN3 does not directly apply to FPI investments, there are apprehensions that entities with substantial Indian equity portfolios might misuse the FPI route, potentially disrupting the orderly functioning of Indian securities markets. Under Regulations 22 and …

SEBI Notifies Modification In Cyber Security, Cyber Resilience Framework Of Stock Exchanges, Clearing Corporations & Depositories
1 year, 3 months ago

SEBI Notifies Modification In Cyber Security, Cyber Resilience Framework Of Stock Exchanges, Clearing Corporations & Depositories

Live Law  

In a recent development, the Securities and Exchange Board of India has announced a notable modification in the Cyber Security and Cyber Resilience framework for Stock Exchanges, Clearing Corporations, and Depositories. SEBI's latest circular dated August 24, 2023, revises certain aspects of the existing cybersecurity guidelines. The revised framework mandates that Market Infrastructure Institutions must carry out comprehensive cyber audits …

SEBI Amends Securities Contracts (Regulation) (Stock Exchanges And Clearing Corporations) Regulations, 2018
1 year, 4 months ago

SEBI Amends Securities Contracts (Regulation) (Stock Exchanges And Clearing Corporations) Regulations, 2018

Live Law  

Securities and Exchange Board of India has issued a notification on July 24, 2023, introducing amendments to the Securities Contracts Regulations, 2018. The newly introduced regulations, titled the "Securities Contracts Regulations, 2023," have been formulated by SEBI in exercise of the powers conferred by sections 4, 8A, and 31 of the Securities Contracts Act, 1956, read with sections 11 and …

Explained | How is the stock market regulated in India?
1 year, 10 months ago

Explained | How is the stock market regulated in India?

The Hindu  

The story so far: On February 10, the Supreme Court asked the Securities and Exchange Board of India and the government to produce the existing regulatory framework in place to protect investors from share market volatility. The SCRA empowers SEBI to recognise stock exchanges, prescribe rules and bye laws for their functioning, and regulate trading, clearing and settlement on stock …

Sebi floats paper to protect equity shareholders under IBC
2 years, 1 month ago

Sebi floats paper to protect equity shareholders under IBC

Live Mint  

The Securities and Exchange Board of India on Thursday floated a consultation paper seeking public comments on protection of public equity shareholders in case listed entities undergo the corporate insolvency resolution process. The paper proposes that non-promoter public shareholders shall be provided an opportunity to acquire equity of the fully diluted capital structure of the new entity up to the …

Sebi rationalises norms for stockbrokers to set up subsidiaries, JV in GIFT IFSC
2 years, 7 months ago

Sebi rationalises norms for stockbrokers to set up subsidiaries, JV in GIFT IFSC

Live Mint  

The market regulator Sebi on Friday rationalised the process of application by stockbrokers or clearing members for setting up wholly-owned subsidiaries, step down subsidiaries, and joint ventures in GIFT IFSC. Generally, Sebi receives applications from Stock Brokers/ Clearing Members for granting NOCs for setting up Wholly Owned Subsidiaries, Step Down Subsidiaries, Joint Ventures, etc. Under the new guidelines issued today, …

Sebi issues norms for stock exchange subsidiary to regulate investment advisors
4 years, 4 months ago

Sebi issues norms for stock exchange subsidiary to regulate investment advisors

Live Mint  

MUMBAI: The Securities and Exchange Board of India has allowed stock exchanges to propose a subsidiary to regulate investment advisors. Sebi had established the first set of rules governing investment advisors in 2013 and has progressively tightened regulations since then to combat mis-selling and fraudulent stock tip operators. It released a consultation paper on Self Regulatory Organisations for intermediaries including …

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