Direct-to-home television service provider&nbsp;Dish TV has moved India's securities regulator against Yes Bank for violating takeover regulations of the country while allegedly attempting to oust its board.

The bank, which owns nearly 26% of Dish TV, had sent a notice for an extraordinary general meeting (EGM) of shareholders to seek approval for its proposal to revamp the board. The EGM is scheduled for December 30.

In its complaint to the Securities Exchange Board of India (SEBI), Jawahar Goel-backed Dish TV said YES Bank violated India's takeover regulations by not announcing an open offer while seeking to oust the board of directors.

Under Indian regulations, such a move should have triggered an open offer.

In an open offer, which is a secondary market operation, a company may offer its existing shareholders the right to buy new shares at a discount to the market price.

 
YES Bank, along with IDBI Trusteeship Services Ltd, owns 25.63% stake in Dish TV, which the lender acquired after invocation of pledged shares in 2020.&nbsp;

YES Bank did not make an open offer of shares as per law, allegedly taking the stance that it had acquired the shares pursuant to invocation of pledged shares.

 
Dish TV maintains that the exemption became invalid the moment the bank sent a notice in September to oust the existing board members and appoint new directors nominated by the bank as it amounts to taking control of the company.

“The company believes that the actions of YES Bank in sending the September 3 notices, September 9 notices and the EGM notice are in violation of the Takeover Regulations," Dish TV said in its complaint to SEBI.&nbsp;

"If YES Bank’s proposal to appoint certain individuals to the board of the company, together with the resolution (s) proposed for removal of the existing directors (except for Anil Kumar Dua), is given effect, it shall lead to YES Bank acquiring control over the company.”

The company said the notices would have necessitated an open offer to be made by YES Bank for acquiring shares from the public shareholders. “No such public announcement has been made by YES Bank, and thus, the aforesaid notices are in violation of the Takeover Regulations.”

Dish TV said that even if YES Bank makes an open offer, there remains a possibility that the shareholding of YES Bank in the company may cross 30%, “which shall be in complete violation of Section 19 of the Banking Regulation Act, 1949 (BR Act). Section 19 of the BR Act prescribes that no banking company shall hold shares in any company, whether as pledgee, mortgagee, or absolute owner, of an amount exceeding 30 per cent of the paid-up share capital of that company or 30 per cent of its own paid-up share capital and reserves, whichever is less.”&nbsp;

The company has asked SEBI to investigate the actions of YES Bank in proposing the revamping of the board.

“The company further requests your good offices to issue necessary directions in the matter to YES Bank to immediately withdraw the EGM notice sent to the company and to cease and desist from taking any further actions in respect of the EGM notice and not continue the violations of the Takeover Regulations,” Dish TV said.

Direct-to-home television service provider Dish TV has moved India's securities regulator against Yes Bank for violating takeover regulations of the country while allegedly attempting to oust its board.

Direct-to-home television service provider Dish TV has moved India's securities regulator against Yes Bank for violating takeover regulations of the country while allegedly attempting to oust its board. The bank, which owns nearly 26% of Dish TV, had sent a notice for an extraordinary general meeting (EGM) of shareholders to seek approval for its proposal to revamp the board. The EGM is scheduled for December 30. In its complaint to the Securities Exchange Board of India (SEBI), Jawahar Goel-backed Dish TV said YES Bank violated India's takeover regulations by not announcing an open offer while seeking to oust the board of directors. Under Indian regulations, such a move should have triggered an open offer. In an open offer, which is a secondary market operation, a company may offer its existing shareholders the right to buy new shares at a discount to the market price. YES Bank, along with IDBI Trusteeship Services Ltd, owns 25.63% stake in Dish TV, which the lender acquired after invocation of pledged shares in 2020. YES Bank did not make an open offer of shares as per law, allegedly taking the stance that it had acquired the shares pursuant to invocation of pledged shares. Dish TV maintains that the exemption became invalid the moment the bank sent a notice in September to oust the existing board members and appoint new directors nominated by the bank as it amounts to taking control of the company. “The company believes that the actions of YES Bank in sending the September 3 notices, September 9 notices and the EGM notice are in violation of the Takeover Regulations," Dish TV said in its complaint to SEBI. "If YES Bank’s proposal to appoint certain individuals to the board of the company, together with the resolution (s) proposed for removal of the existing directors (except for Anil Kumar Dua), is given effect, it shall lead to YES Bank acquiring control over the company.” The company said the notices would have necessitated an open offer to be made by YES Bank for acquiring shares from the public shareholders. “No such public announcement has been made by YES Bank, and thus, the aforesaid notices are in violation of the Takeover Regulations.” Dish TV said that even if YES Bank makes an open offer, there remains a possibility that the shareholding of YES Bank in the company may cross 30%, “which shall be in complete violation of Section 19 of the Banking Regulation Act, 1949 (BR Act). Section 19 of the BR Act prescribes that no banking company shall hold shares in any company, whether as pledgee, mortgagee, or absolute owner, of an amount exceeding 30 per cent of the paid-up share capital of that company or 30 per cent of its own paid-up share capital and reserves, whichever is less.” The company has asked SEBI to investigate the actions of YES Bank in proposing the revamping of the board. “The company further requests your good offices to issue necessary directions in the matter to YES Bank to immediately withdraw the EGM notice sent to the company and to cease and desist from taking any further actions in respect of the EGM notice and not continue the violations of the Takeover Regulations,” Dish TV said.

Dish TV moves India's securities regulator SEBI against Yes Bank for violating takeover regulations

Indian equity market benchmarks BSE Sensex and Nifty 50 extended gains and were trading over one per cent higher on Thursday.&nbsp;

The S&amp;P BSE Sensex gained 500 points to 38,700 levels and the Nifty50 index reclaimed the 11,400-mark.

Reliance Industries leaped 7 per cent on reports that the company is offering to sell roughly $20 billion worth of stake in its retail arm, Reliance Retail, to Amazon.

Market analysts believe that midcap and smallcap outperformance is likely to continue in the coming months. On the back of a rebound in COVID-19 cases globally and India-China border tension, markets are reeling under volatility. So far in September, the 30-share Sensex has lost 1.8 per cent. The BSE SmallCap index has fallen 0.77 per cent. The BSE MidCap index fell 2.6 per cent so far in September.

Meanwhile, Rupee settles higher at 73.46 per US dollar vs Wednesday's close of 73.53/$ 
 
(With inputs from agencies)

Indian equity market benchmarks BSE Sensex and Nifty 50 extended gains and were trading over one per cent higher on Thursday. The S&P BSE Sensex gained 500 points to 38,700 levels and the Nifty50 index reclaimed the 11,400-mark.

Indian equity market benchmarks BSE Sensex and Nifty 50 extended gains and were trading over one per cent higher on Thursday. The S&P BSE Sensex gained 500 points to 38,700 levels and the Nifty50 index reclaimed the 11,400-mark. Reliance Industries leaped 7 per cent on reports that the company is offering to sell roughly $20 billion worth of stake in its retail arm, Reliance Retail, to Amazon. Market analysts believe that midcap and smallcap outperformance is likely to continue in the coming months. On the back of a rebound in COVID-19 cases globally and India-China border tension, markets are reeling under volatility. So far in September, the 30-share Sensex has lost 1.8 per cent. The BSE SmallCap index has fallen 0.77 per cent. The BSE MidCap index fell 2.6 per cent so far in September. Meanwhile, Rupee settles higher at 73.46 per US dollar vs Wednesday's close of 73.53/$ (With inputs from agencies)

Sensex zooms over 500 points up, Nifty again tops 11,400

After China's central bank hiked its shareholding in HDFC Ltd, a report claims that markets regulator SEBI will now monitor Chinese investments in Indian companies. WION's Palki Sharma tells you more.

Gravitas: India to track Chinese investments in Indian companies

One of the co-founders of <a href="https://www.wionews.com/business-economy/indigo-close-to-new-engine-deal-may-drop-pratt-for-cfm-223500">India's largest airline IndiGo</a> has alleged violation of corporate governance rules at parent company Interglobe Aviation Ltd and asked the securities regulator to intervene.

The move appears to indicate that a boardroom dispute is escalating after a report in May that the co-founders and two largest shareholders of India's largest airline were at odds over its expansion.&nbsp;

In a letter to Sebi or Securities and Exchange Board of India, co-founder Rakesh Gangwal alleged the company's board decisions were in defiance of governance protocols and laws.

Sebi, in its role as a stock market regulator, is empowered to protect the rights of investors in listed companies.

Co-founders Gangwal and Rahul Bhatia, along with their respective families, each control stakes of slightly less than 40 per cent in the airline's holding company, giving them both a major say in its strategy and plans.

"I have vigorously attempted for almost a year to persuade the company to shore up its governance standards, and all my attempts have been thwarted by the IGE Group," Gangwal said in his letter to Sebi, published on the Bombay Stock Exchange website&nbsp;

Sebi has sought a reply from Interglobe Aviation by July 19.&nbsp;

Gangwal, an American and an aviation industry veteran who spent years in senior roles at United Airlines and US Airways, has been a big factor in driving IndiGo's emergence as one of the fastest growing carriers in the world.

Bhatia, in turn, has been running things on the ground in India.

India's aviation sector has been shaken by the collapse of Jet Airways, which has sent travel prices soaring. Jet, once India's largest private carrier, was crippled by mounting losses.

IndiGo, SpiceJet and GoAir have been rushing to fill the vacuum left by Jet and gain control of its valuable slots.&nbsp;

IndiGo's fleet consists of more than 200 Airbus SE A320 and A321 narrowbody aircraft, along with just over a dozen ATR turboprops.&nbsp;

Bhatia's office did not respond to an e-mail and phone call from Reuters.

One of the co-founders of India's largest airline IndiGo has alleged violation of corporate governance rules at parent company Interglobe Aviation Ltd and asked the securities regulator to intervene.

One of the co-founders of India's largest airline IndiGo has alleged violation of corporate governance rules at parent company Interglobe Aviation Ltd and asked the securities regulator to intervene. The move appears to indicate that a boardroom dispute is escalating after a report in May that the co-founders and two largest shareholders of India's largest airline were at odds over its expansion. In a letter to Sebi or Securities and Exchange Board of India, co-founder Rakesh Gangwal alleged the company's board decisions were in defiance of governance protocols and laws. Sebi, in its role as a stock market regulator, is empowered to protect the rights of investors in listed companies. Co-founders Gangwal and Rahul Bhatia, along with their respective families, each control stakes of slightly less than 40 per cent in the airline's holding company, giving them both a major say in its strategy and plans. "I have vigorously attempted for almost a year to persuade the company to shore up its governance standards, and all my attempts have been thwarted by the IGE Group," Gangwal said in his letter to Sebi, published on the Bombay Stock Exchange website Sebi has sought a reply from Interglobe Aviation by July 19. Gangwal, an American and an aviation industry veteran who spent years in senior roles at United Airlines and US Airways, has been a big factor in driving IndiGo's emergence as one of the fastest growing carriers in the world. Bhatia, in turn, has been running things on the ground in India. India's aviation sector has been shaken by the collapse of Jet Airways, which has sent travel prices soaring. Jet, once India's largest private carrier, was crippled by mounting losses. IndiGo, SpiceJet and GoAir have been rushing to fill the vacuum left by Jet and gain control of its valuable slots. IndiGo's fleet consists of more than 200 Airbus SE A320 and A321 narrowbody aircraft, along with just over a dozen ATR turboprops. Bhatia's office did not respond to an e-mail and phone call from Reuters.

IndiGo co-founder turns to Sebi over alleged corporate governance violation

<a href="https://www.wionews.com/sports/sports-minister-kiren-rijiju-extremely-optimistic-of-india-lifting-world-cup-233837">India's government</a> aims to rise to 150 billion rupees ($2.18 billion) by reducing its stake in 18 state firms to 75%, a finance ministry official involved in the matter said on Monday, as it looks to boost revenues and rein in the fiscal deficit.

<a href="https://www.wionews.com/business-economy/sensex-nifty-open-in-red-why-stock-markets-did-not-like-the-budget-233896">Finance Minister Nirmala Sitharaman</a> set an ambitious target of 1.05 trillion rupees ($15.33 billion) from the sale of stakes in state-run companies, compared with 850 billion rupees the previous year, in her budget on Friday for the fiscal year that began on April 1.

While a third of the divestment target will be met by the outright sale of state enterprises, including Air India, the other sales will be done through a rule under which all listed entities must have a public float of at least 25% after three years of listing.

But governments have been putting this off for state firms, winning extensions from the Securities Exchange Board of India (SEBI) each year.

"The government will aim to meet the SEBI norms in state-owned companies this fiscal," said the ministry official, who declined to be identified as he is not allowed to speak to the media, referring to the Securities and Exchange Board of India.

The government is planning to sell 10% each in state-owned reinsurers General Insurance Corporation of India (GIC) and New India Assurance (NIA) which will bring it's holding down to 75 percent in the two giant companies.

In her budget, Sitharaman proposed increasing the minimum public shareholding for listed entities to 35% from 25% as part of efforts to make the market more accessible to retail investors.

But the finance ministry official said the new regulation would require at least two years to go into force after approval by the SEBI.

Asia's third-largest economy is banking on state enterprise sales, dividends from the central bank and additional levies and taxes to meet a fiscal deficit target of 3.3% of gross domestic product from 3.4% previously announced.

The official said the government was willing to sell 100% of debt-ridden Air India after a previous offer of 76% control produced no buyers.

"Air India is our biggest bet," the official said. The government expects to get 150 billion rupees from selling the airline.

The government also plans to sell at least a 5% stake in Coal India and ONGC, the official said.

India's government aims to rise to 150 billion rupees ($2.18 billion) by reducing its stake in 18 state firms to 75%, a finance ministry official involved in the matter said on Monday, as it looks to boost revenues and rein in the fiscal deficit.

India's government aims to rise to 150 billion rupees ($2.18 billion) by reducing its stake in 18 state firms to 75%, a finance ministry official involved in the matter said on Monday, as it looks to boost revenues and rein in the fiscal deficit. Finance Minister Nirmala Sitharaman set an ambitious target of 1.05 trillion rupees ($15.33 billion) from the sale of stakes in state-run companies, compared with 850 billion rupees the previous year, in her budget on Friday for the fiscal year that began on April 1. While a third of the divestment target will be met by the outright sale of state enterprises, including Air India, the other sales will be done through a rule under which all listed entities must have a public float of at least 25% after three years of listing. But governments have been putting this off for state firms, winning extensions from the Securities Exchange Board of India (SEBI) each year. "The government will aim to meet the SEBI norms in state-owned companies this fiscal," said the ministry official, who declined to be identified as he is not allowed to speak to the media, referring to the Securities and Exchange Board of India. The government is planning to sell 10% each in state-owned reinsurers General Insurance Corporation of India (GIC) and New India Assurance (NIA) which will bring it's holding down to 75 percent in the two giant companies. In her budget, Sitharaman proposed increasing the minimum public shareholding for listed entities to 35% from 25% as part of efforts to make the market more accessible to retail investors. But the finance ministry official said the new regulation would require at least two years to go into force after approval by the SEBI. Asia's third-largest economy is banking on state enterprise sales, dividends from the central bank and additional levies and taxes to meet a fiscal deficit target of 3.3% of gross domestic product from 3.4% previously announced. The official said the government was willing to sell 100% of debt-ridden Air India after a previous offer of 76% control produced no buyers. "Air India is our biggest bet," the official said. The government expects to get 150 billion rupees from selling the airline. The government also plans to sell at least a 5% stake in Coal India and ONGC, the official said.

India aims to raise $2.18 billion by cutting stakes in 18 firms to 75%

Cash-strapped Reliance Capital Saturday said it expects to raise Rs 10,000 crore by selling assets and cut down its debt by about 50 per cent in the current fiscal.

The company has been working diligently to ensure timely debt repayments and is regular in all its debt payments, Reliance Capital said in a statement.

The company's asset monetisation plan is on track, it said, adding, it is in the process of monetising its entire 42.88 per cent stake in Reliance Nippon Life Asset Management Limited, which at current market price is valued at over Rs 5,000 crore.

It has also announced its plans to monetise 49 per cent stake in Reliance General Insurance Company and the DRHP has recently been filed with the Securities and Exchange Board of India (Sebi).

The company is at an advanced stage of monetisation of several of its non-core investments, the statement said.

"Based on the above, the company expects to realise minimum proceeds of over Rs 10,000 crore, and sharply cut its overall debt by more than 50 per cent within the current financial year," it added.

The Anil Ambani-group company also expressed disagreement with rating agency Care, which downgraded its ratings for long-term debt programme, market-linked debentures and subordinated debt.

"There has not been any adverse change in the company's operational parameters and/or any other circumstances from the time of the last rating action, just 4 weeks ago and hence latest revision is completely unjustified," it said.&nbsp;

Cash-strapped Reliance Capital Saturday said it expects to raise Rs 10,000 crore by selling assets and cut down its debt by about 50 per cent in the current fiscal.

Cash-strapped Reliance Capital Saturday said it expects to raise Rs 10,000 crore by selling assets and cut down its debt by about 50 per cent in the current fiscal. The company has been working diligently to ensure timely debt repayments and is regular in all its debt payments, Reliance Capital said in a statement. The company's asset monetisation plan is on track, it said, adding, it is in the process of monetising its entire 42.88 per cent stake in Reliance Nippon Life Asset Management Limited, which at current market price is valued at over Rs 5,000 crore. It has also announced its plans to monetise 49 per cent stake in Reliance General Insurance Company and the DRHP has recently been filed with the Securities and Exchange Board of India (Sebi). The company is at an advanced stage of monetisation of several of its non-core investments, the statement said. "Based on the above, the company expects to realise minimum proceeds of over Rs 10,000 crore, and sharply cut its overall debt by more than 50 per cent within the current financial year," it added. The Anil Ambani-group company also expressed disagreement with rating agency Care, which downgraded its ratings for long-term debt programme, market-linked debentures and subordinated debt. "There has not been any adverse change in the company's operational parameters and/or any other circumstances from the time of the last rating action, just 4 weeks ago and hence latest revision is completely unjustified," it said.

Reliance Capital to raise Rs 10,000 crore in current fiscal by selling assets

Markets regulator Sebi plans to allow custodial services in the commodity derivatives market to enable institutional participation.

The proposal is likely to be discussed at the <a href="http://www.wionews.com/business-economy/sebi-to-expand-ofs-framework-relax-fpi-investment-clubbing-norms-182608">Securities and Exchange Board of India</a>'s (Sebi) board meeting on Wednesday, officials said.

Under the proposal, existing custodians will be permitted to add commodities as an asset class and provide physical delivery of both securities and commodities, they added.

Current, regulation on the custodian of securities provide for the safekeeping of securities or gold or gold related instruments or title deeds of real estate and services incidental but do not provide for the safekeeping of goods, which are underlying assets of commodity derivatives.

To enable participation of institutional investors in the commodity derivatives market, it has been proposed to make necessary amendments in the custodian regulations so as to provide for requisite custodial services.

It has also been proposed that responsibility of custodians will not be limited to a holding of securities but would also include the holding of goods.

The proposal is aimed at enabling the participation of institutional investors such as mutual funds and portfolio managers in the commodity derivatives market.

Markets regulator Sebi plans to allow custodial services in the commodity derivatives market to enable institutional participation. The proposal is likely to be discussed at the Securities and Exchange Board of India's (Sebi) board meeting on Wednesday, officials said.

Markets regulator Sebi plans to allow custodial services in the commodity derivatives market to enable institutional participation. The proposal is likely to be discussed at the Securities and Exchange Board of India's (Sebi) board meeting on Wednesday, officials said. Under the proposal, existing custodians will be permitted to add commodities as an asset class and provide physical delivery of both securities and commodities, they added. Current, regulation on the custodian of securities provide for the safekeeping of securities or gold or gold related instruments or title deeds of real estate and services incidental but do not provide for the safekeeping of goods, which are underlying assets of commodity derivatives. To enable participation of institutional investors in the commodity derivatives market, it has been proposed to make necessary amendments in the custodian regulations so as to provide for requisite custodial services. It has also been proposed that responsibility of custodians will not be limited to a holding of securities but would also include the holding of goods. The proposal is aimed at enabling the participation of institutional investors such as mutual funds and portfolio managers in the commodity derivatives market.

SEBI plans to allow custodial services in commodity derivatives market

In a series of reforms, capital markets regulator SEBI is planning to expand its Offer For Sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules.

The regulator is also planning to relax its disclosure norms for housing finance companies and systemically important NBFCs regarding pledged shares of listed firms and also provide for cancellation of an Offer For Sale (OFS) in case of limited interest from non-retail shareholders on the first day itself, officials said.

These proposals, along with several others, are likely to be discussed by SEBI's board at its meeting this week.

Officials said the Securities and Exchange Board of India (SEBI) is also considering changes in its regulatory framework for debenture trustees. Besides, it plans to allow custodial services in the commodity derivatives market to enable institutional participation.

Another proposal involves enabling mutual funds to undertake 'side pocketing' of debt and money market instruments in case of a credit event while ensuring fair treatment to all unitholders.

'Side pocketing' is a mechanism to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. It prevents the distressed assets from damaging the returns generated from more liquid and better-performing assets.

As per one proposal to amend the insider trading norms, entities belonging to promoter group will need to make initial and continuous disclosure about their shareholdings and the subsequent share transactions exceeding Rs 10 lakh.

Currently, such disclosure requirements are mandatory for promoters, key management personnel and directors of a company, but there is no obligation on entities belonging to promoter groups.

Officials said that SEBI is also of the view that an earlier proposed exercise for determining a uniform bond valuation methodology to be followed by all regulated entities across the financial sector may not be pursued.

Such an exercise was suggested by a Working Group on Development of Corporate Bond market in India, chaired by H R Khan.

However, SEBI will prescribe high-level principles to be followed uniformly across all mutual funds for strengthening the existing system of valuation of corporate bonds for mutual funds. Regarding the pricing agencies, SEBI plans to evolve a supervisory and regulatory framework.

In another key proposal, SEBI plans to relax the norms for clubbing of investment limits for FPIs.

Currently, the foreign portfolio investors are treated as part of the same investor group and the investment limits of all such entities are clubbed for deriving the investment limit as applicable to a single FPI, in case of the same set of ultimate beneficial owners investing through multiple entities.

Under the proposed norm, multiple entities having common ownership, directly or indirectly, of more than 50 per cent would be treated as part of the same investor group and their investment limits would be clubbed.

Besides, the clubbing of investment limit would not be applicable in case of entities having common control, if the FPIs are appropriately regulated public retail funds. Similar exemptions would be available to FPIs that are public retail funds majority owned by well-regulated public retail funds or those having well-regulated investment managers.

Public retail funds typically include insurance companies, pension funds and mutual funds or unit trusts that are open for retail subscriptions.

Regarding the changes in the OFS framework, officials said the proposed changes have been formulated as per suggestions from the Department of Investment and Public Asset Management (DIPAM) and other stakeholders.

The OFS norms will be eased to allow this mechanism for all companies with market cap of Rs 1,000 crore and above, as against a current limit of top 200 companies.

Also, if the seller fails to get sufficient demand from non-retail investors at or above the floor price on the first day of offer, then the seller may choose to cancel the officer post bidding in full (both retail and non-retail) on the first day itself and not proceed with the offer to retail investors on the second day.

Among other proposals, SEBI is looking at changes in norms requiring the filing of a fresh offer document in case of an OFS where there is a change in the number of shares offered for sale or the estimated issue size by more than 50 per cent.

Besides, norms would be eased for allocation in the net offer in fixed price issues in the SME segment.

Also, housing finance companies and systemically important NBFCs may be exempted from disclosure of increase or decrease in shareholding due to encumbrance or release of the encumbrance of shares. A similar exemption already available to scheduled commercial banks and public financial institutions. 
&nbsp;

In a series of reforms, capital markets regulator SEBI is planning to expand its Offer For Sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules.

In a series of reforms, capital markets regulator SEBI is planning to expand its Offer For Sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules. The regulator is also planning to relax its disclosure norms for housing finance companies and systemically important NBFCs regarding pledged shares of listed firms and also provide for cancellation of an Offer For Sale (OFS) in case of limited interest from non-retail shareholders on the first day itself, officials said. These proposals, along with several others, are likely to be discussed by SEBI's board at its meeting this week. Officials said the Securities and Exchange Board of India (SEBI) is also considering changes in its regulatory framework for debenture trustees. Besides, it plans to allow custodial services in the commodity derivatives market to enable institutional participation. Another proposal involves enabling mutual funds to undertake 'side pocketing' of debt and money market instruments in case of a credit event while ensuring fair treatment to all unitholders. 'Side pocketing' is a mechanism to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. It prevents the distressed assets from damaging the returns generated from more liquid and better-performing assets. As per one proposal to amend the insider trading norms, entities belonging to promoter group will need to make initial and continuous disclosure about their shareholdings and the subsequent share transactions exceeding Rs 10 lakh. Currently, such disclosure requirements are mandatory for promoters, key management personnel and directors of a company, but there is no obligation on entities belonging to promoter groups. Officials said that SEBI is also of the view that an earlier proposed exercise for determining a uniform bond valuation methodology to be followed by all regulated entities across the financial sector may not be pursued. Such an exercise was suggested by a Working Group on Development of Corporate Bond market in India, chaired by H R Khan. However, SEBI will prescribe high-level principles to be followed uniformly across all mutual funds for strengthening the existing system of valuation of corporate bonds for mutual funds. Regarding the pricing agencies, SEBI plans to evolve a supervisory and regulatory framework. In another key proposal, SEBI plans to relax the norms for clubbing of investment limits for FPIs. Currently, the foreign portfolio investors are treated as part of the same investor group and the investment limits of all such entities are clubbed for deriving the investment limit as applicable to a single FPI, in case of the same set of ultimate beneficial owners investing through multiple entities. Under the proposed norm, multiple entities having common ownership, directly or indirectly, of more than 50 per cent would be treated as part of the same investor group and their investment limits would be clubbed. Besides, the clubbing of investment limit would not be applicable in case of entities having common control, if the FPIs are appropriately regulated public retail funds. Similar exemptions would be available to FPIs that are public retail funds majority owned by well-regulated public retail funds or those having well-regulated investment managers. Public retail funds typically include insurance companies, pension funds and mutual funds or unit trusts that are open for retail subscriptions. Regarding the changes in the OFS framework, officials said the proposed changes have been formulated as per suggestions from the Department of Investment and Public Asset Management (DIPAM) and other stakeholders. The OFS norms will be eased to allow this mechanism for all companies with market cap of Rs 1,000 crore and above, as against a current limit of top 200 companies. Also, if the seller fails to get sufficient demand from non-retail investors at or above the floor price on the first day of offer, then the seller may choose to cancel the officer post bidding in full (both retail and non-retail) on the first day itself and not proceed with the offer to retail investors on the second day. Among other proposals, SEBI is looking at changes in norms requiring the filing of a fresh offer document in case of an OFS where there is a change in the number of shares offered for sale or the estimated issue size by more than 50 per cent. Besides, norms would be eased for allocation in the net offer in fixed price issues in the SME segment. Also, housing finance companies and systemically important NBFCs may be exempted from disclosure of increase or decrease in shareholding due to encumbrance or release of the encumbrance of shares. A similar exemption already available to scheduled commercial banks and public financial institutions.

SEBI to expand OFS framework, relax FPI investment clubbing norms

SEBI on Friday barred fugitive businessman Vijay Mallya from the securities market for another three years as also from holding directorship in listed companies for five years in the case of illegal fund diversions at United Spirits Ltd.

Besides, the watchdog has imposed a one-year ban on two former company officials -- Ashok Capoor and P A Murali.

Through an interim order in January 2017, the regulator had barred Mallya and six former officials of United Spirits, including Capoor and Murali, from the securities markets in the case related to illegal fund diversions.

In a 38-page order, Sebi said it has banned Mallya for three years from the securities market.

He has also been barred from "holding position as director or key managerial person of a listed company for a period of five years", it added.

Capoor and Murali have been restrained from holding directorship or key managerial positions for one year.

"In the context of diversion of funds perpetrated in a listed company by way of dubious and concealed financial statements/ projections or false books of accounts, it is inevitable that Sebi should step in and take appropriate action..," Sebi Whole Time Member G Mahalingam said in the order.&nbsp;

SEBI on Friday barred fugitive businessman Vijay Mallya from the securities market for another three years as also from holding directorship in listed companies for five years in the case of illegal fund diversions at United Spirits Ltd

SEBI on Friday barred fugitive businessman Vijay Mallya from the securities market for another three years as also from holding directorship in listed companies for five years in the case of illegal fund diversions at United Spirits Ltd. Besides, the watchdog has imposed a one-year ban on two former company officials -- Ashok Capoor and P A Murali. Through an interim order in January 2017, the regulator had barred Mallya and six former officials of United Spirits, including Capoor and Murali, from the securities markets in the case related to illegal fund diversions. In a 38-page order, Sebi said it has banned Mallya for three years from the securities market. He has also been barred from "holding position as director or key managerial person of a listed company for a period of five years", it added. Capoor and Murali have been restrained from holding directorship or key managerial positions for one year. "In the context of diversion of funds perpetrated in a listed company by way of dubious and concealed financial statements/ projections or false books of accounts, it is inevitable that Sebi should step in and take appropriate action..," Sebi Whole Time Member G Mahalingam said in the order.

SEBI bars Mallya from securities market for another 3 years

ICICI Bank Ltd said on Wednesday it will institute an inquiry into the allegations raised by an anonymous whistleblower against Chief Executive Chanda Kochhar.

ICICI, India's third-biggest lender by assets, said the probe, headed by an independent person, would examine allegations that the chief executive did not adhere to provisions relating to the bank's code of conduct and whether her actions involved "conflict of interest".

ICICI had on May 25 said that Securities and Exchange Board of India (SEBI) had sought responses from the company and Kochhar on alleged non-compliance of the "erstwhile 'Listing Agreement' and the 'Listing Obligations and Disclosure Requirements) Regulations, 2015'".

According to a BSE filing, SEBI sought the reply via a notice issued to the private lender and its MD and CEO on May 24.

As per the securities market regulator's LODR regulations, all listed entities are mandated to immediately disclose relevant and important information to stock exchanges.

The notice by SEBI had been issued "based on information furnished by the bank or its MD and CEO to diverse queries made by SEBI concerning dealings between the bank and <a href="http://www.wionews.com/india-news/no-quid-pro-quo-icici-bank-gave-loan-on-merit-videocon-chief-venugopal-dhoot-127583">Videocon Group</a> and certain dealings allegedly between Videocon Group and <a href="http://www.wionews.com/india-news/icici-videocon-case-cbi-questions-cfo-of-nupower-renewables-131233">Nupower</a>, an entity in which Deepak Kochhar, spouse of MD and CEO has economic interests," the bank said.

The bank said that appropriate responses would be submitted to SEBI in accordance with regulation.

The SEBI notice comes more than a month after nepotism and conflict of interest allegations were levelled against Kochhar. It has been alleged that Kochhar had wrongfully granted a loan to Videocon Group and that her husband's company - NuPower Renewables - received a loan from the Videocon Group's Chairman Venugopal Dhoot on a quid-pro-quo basis.

Chanda Kochhar on May 7 had said that private lender works under and abides by all regulatory norms and that it has been fully cooperating with regulatory and investigative agencies.

The bank has backed Kochhar, calling the rumours "malicious and unfounded".

ICICI, India's third-biggest lender by assets, said the probe will be headed by an independent person.

ICICI Bank Ltd said on Wednesday it will institute an inquiry into the allegations raised by an anonymous whistleblower against Chief Executive Chanda Kochhar. ICICI, India's third-biggest lender by assets, said the probe, headed by an independent person, would examine allegations that the chief executive did not adhere to provisions relating to the bank's code of conduct and whether her actions involved "conflict of interest". ICICI had on May 25 said that Securities and Exchange Board of India (SEBI) had sought responses from the company and Kochhar on alleged non-compliance of the "erstwhile 'Listing Agreement' and the 'Listing Obligations and Disclosure Requirements) Regulations, 2015'". According to a BSE filing, SEBI sought the reply via a notice issued to the private lender and its MD and CEO on May 24. As per the securities market regulator's LODR regulations, all listed entities are mandated to immediately disclose relevant and important information to stock exchanges. The notice by SEBI had been issued "based on information furnished by the bank or its MD and CEO to diverse queries made by SEBI concerning dealings between the bank and Videocon Group and certain dealings allegedly between Videocon Group and Nupower, an entity in which Deepak Kochhar, spouse of MD and CEO has economic interests," the bank said. The bank said that appropriate responses would be submitted to SEBI in accordance with regulation. The SEBI notice comes more than a month after nepotism and conflict of interest allegations were levelled against Kochhar. It has been alleged that Kochhar had wrongfully granted a loan to Videocon Group and that her husband's company - NuPower Renewables - received a loan from the Videocon Group's Chairman Venugopal Dhoot on a quid-pro-quo basis. Chanda Kochhar on May 7 had said that private lender works under and abides by all regulatory norms and that it has been fully cooperating with regulatory and investigative agencies. The bank has backed Kochhar, calling the rumours "malicious and unfounded".

ICICI Bank to probe allegations against CEO Chanda Kochhar

Markets regulator Securities and Exchange Board of India (SEBI) had looked at Facebook accounts of suspected persons under an insider trading case, reports state.&nbsp;

According to reports, the watchdog has been scanning Facebook profiles of suspected persons to determine their probable link to a case related to violation of insider trading norms.

SEBI's investigation revealed that the Facebook profiles in the insider case related to Deep Industries. It was found that the entities involved in the case were 'friends' on the social networking site and had 'liked' each other's photos posted on the platform.

"The profiles of these persons were having restricted access and the photos posted by them can be 'liked' only by select persons whom they have added as their 'friends' on Facebook," the regulator said in an order dated April 16.

The watchdog has ordered impounding of unlawful gains worth over Rs 2.4 crore from three entities involved in the case.

The investigation found three entities as allegedly connected in the case. Rupeshbhai Kantilal Savla, Sujay Ajitkumar Hamlai and V Techweb India Pvt Ltd were found to have had traded in Deep Industries Ltd (DIL) shares while possessing price-sensitive information.&nbsp;

According to SEBI, the accused had details pertaining to the company bagging three contracts from ONGC and using it the entities made illegal gains, as per SEBI.

DIL's Managing Director Rupeshbhai Kantilal Savla and his wife Sheetal Rupesh Savla -- also one of the promoters -- were acquainted with the two directors of V Techweb -- Ajay Ajitkumar Hamlai and Sujay Ajitkumar Hamlai -- through Facebook.&nbsp;

The Savla couple was also found to be friends with Radhika Hamlai, wife of Ajay Hamlai through the platform.

Ajay and Sujay were found to be associated with DIL by virtue of frequent communication with Rupeshbhai Kantilal Savla.&nbsp;SEBI expects them to have access to the unpublished price sensitive information related to DIL in July-October 2015 period.

"... They had a social relationship which also can confer access to UPSI as envisaged in SEBI's PIT (Prohibition of Insider Trading) regulations," the order said.

According to SEBI guidelines, a person or an entity is considered an insider on a host of parameters, including by way of their association in any capacity with the company concerned and if they have an access to unpublished price sensitive information.

Those involved in frequent communication with officers, including through "likes on social media", of the company concerned can also be considered as insiders.&nbsp;

(With inputs from PTI)&nbsp;

It was found that the entities involved in the insider trading case were 'friends' on the social networking site

Markets regulator Securities and Exchange Board of India (SEBI) had looked at Facebook accounts of suspected persons under an insider trading case, reports state. According to reports, the watchdog has been scanning Facebook profiles of suspected persons to determine their probable link to a case related to violation of insider trading norms. SEBI's investigation revealed that the Facebook profiles in the insider case related to Deep Industries. It was found that the entities involved in the case were 'friends' on the social networking site and had 'liked' each other's photos posted on the platform. "The profiles of these persons were having restricted access and the photos posted by them can be 'liked' only by select persons whom they have added as their 'friends' on Facebook," the regulator said in an order dated April 16. The watchdog has ordered impounding of unlawful gains worth over Rs 2.4 crore from three entities involved in the case. The investigation found three entities as allegedly connected in the case. Rupeshbhai Kantilal Savla, Sujay Ajitkumar Hamlai and V Techweb India Pvt Ltd were found to have had traded in Deep Industries Ltd (DIL) shares while possessing price-sensitive information. According to SEBI, the accused had details pertaining to the company bagging three contracts from ONGC and using it the entities made illegal gains, as per SEBI. DIL's Managing Director Rupeshbhai Kantilal Savla and his wife Sheetal Rupesh Savla -- also one of the promoters -- were acquainted with the two directors of V Techweb -- Ajay Ajitkumar Hamlai and Sujay Ajitkumar Hamlai -- through Facebook. The Savla couple was also found to be friends with Radhika Hamlai, wife of Ajay Hamlai through the platform. Ajay and Sujay were found to be associated with DIL by virtue of frequent communication with Rupeshbhai Kantilal Savla. SEBI expects them to have access to the unpublished price sensitive information related to DIL in July-October 2015 period. "... They had a social relationship which also can confer access to UPSI as envisaged in SEBI's PIT (Prohibition of Insider Trading) regulations," the order said. According to SEBI guidelines, a person or an entity is considered an insider on a host of parameters, including by way of their association in any capacity with the company concerned and if they have an access to unpublished price sensitive information. Those involved in frequent communication with officers, including through "likes on social media", of the company concerned can also be considered as insiders. (With inputs from PTI)

SEBI scans Facebook profiles; finds evidence in 'insider trading' case

Markets regulator Sebi today decided to make physical settlement of stock derivatives mandatory in a phased or calibrated manner, a move that could bring some much-needed balance between equity cash and derivative segments.&nbsp

The regulator has strengthened the existing entry criteria for introduction of stocks into the derivative segment in line with the increase in market capitalisation since the last revision of the criteria in 2012, Sebi said in the circular.&nbsp

Accordingly, existing criteria like market-wide position limit and median quarter-sigma order size have been revised upward from the current level of Rs 300 crore and Rs 10 lakh, respectively to Rs 500 crore and Rs 25 lakh, respectively.&nbsp

An additional criterion of average daily deliverable' value in the cash market of Rs 10 crore has also been prescribed. The enhanced criteria need to be met for a continuous period of six months.&nbsp

"It has been decided that physical settlement of stock derivatives shall be made mandatory in a phased/calibrated manner," Sebi noted.&nbsp

To begin with, Sebi said that stocks which are currently in derivatives but fail to meet any of the enhanced criteria would be physically settled.&nbsp

However, such stocks would exit the derivative segment if they fail to meet any of the enhanced criteria within one year or fail to meet any of the current existing criteria for a continuous period of three months.&nbsp

Stocks which are currently in derivatives and meet the enhanced criteria would be cash settled. Such stocks if they fail to meet any one of the enhanced criteria for continuous three months will move from cash settlement to physical settlement.&nbsp

After moving to physical settlement if such stock does not meet any of the current existing criteria for a continuous period of three months, then it would exit out of derivatives.

An additional criterion of average daily deliverable' value in the cash market of Rs 10 crore has also been prescribed.

Markets regulator Sebi today decided to make physical settlement of stock derivatives mandatory in a phased or calibrated manner, a move that could bring some much-needed balance between equity cash and derivative segments. The regulator has strengthened the existing entry criteria for introduction of stocks into the derivative segment in line with the increase in market capitalisation since the last revision of the criteria in 2012, Sebi said in the circular. Accordingly, existing criteria like market-wide position limit and median quarter-sigma order size have been revised upward from the current level of Rs 300 crore and Rs 10 lakh, respectively to Rs 500 crore and Rs 25 lakh, respectively. An additional criterion of average daily deliverable' value in the cash market of Rs 10 crore has also been prescribed. The enhanced criteria need to be met for a continuous period of six months. "It has been decided that physical settlement of stock derivatives shall be made mandatory in a phased/calibrated manner," Sebi noted. To begin with, Sebi said that stocks which are currently in derivatives but fail to meet any of the enhanced criteria would be physically settled. However, such stocks would exit the derivative segment if they fail to meet any of the enhanced criteria within one year or fail to meet any of the current existing criteria for a continuous period of three months. Stocks which are currently in derivatives and meet the enhanced criteria would be cash settled. Such stocks if they fail to meet any one of the enhanced criteria for continuous three months will move from cash settlement to physical settlement. After moving to physical settlement if such stock does not meet any of the current existing criteria for a continuous period of three months, then it would exit out of derivatives.

Sebi to make physical settlement mandatory in phased manner

India&#39;s market regulator ordered HDFC Bank on Friday, to conduct an internal inquiry into the suspected leaking of key unpublished financial information and to strengthen its handling of such data.

The direction from the Securities and Exchange Board of India (SEBI) comes in the wake of an investigation that the regulator opened following a Reuters report late last year that prescient messages about company results and other matters had circulated in private WhatsApp chatrooms before their official release.

Reuters identified 12 such instances on as many companies in the report, HDFC Bank was among the companies identified.

The lender`s financial information &quot;circulated in WhatsApp closely matched the quarterly financial results of HDFC Bank for June 2017&quot;, the regulator said on Friday.

This could not have been possible without the &quot;leakage of information&quot; from a person, or people, privy to the information, SEBI said.

It said this pointed to the inadequacy of the processes and systems that HDFC Bank has in place.

HDFC Bank, the biggest of the Indian private sector lenders and second-biggest overall by assets, has been ordered to investigate the issue and take action against those responsible within three months and report back to SEBI.

An HDFC Bank spokesman said he had yet to read the order, but added the bank would comply with it.

&quot;We`re a conscientious, law-abiding company with the highest standards of corporate governance,&quot; he said.

SEBI had sent a direction to Axis Bank on the issue in December asking it to conduct a similar inquiry. The bank said it would work with SEBI to investigate the matter and take action as needed.

The Reuters report has sparked a broad SEBI investigation since December, including raids on brokers` homes that resulted in the confiscation of laptops and mobile phones.&nbsp;

India's market regulator ordered HDFC Bank on Friday, to conduct an internal inquiry into the suspected leaking of key unpublished financial information and to strengthen its handling of such data

India's market regulator ordered HDFC Bank on Friday, to conduct an internal inquiry into the suspected leaking of key unpublished financial information and to strengthen its handling of such data. The direction from the Securities and Exchange Board of India (SEBI) comes in the wake of an investigation that the regulator opened following a Reuters report late last year that prescient messages about company results and other matters had circulated in private WhatsApp chatrooms before their official release. Reuters identified 12 such instances on as many companies in the report, HDFC Bank was among the companies identified. The lender`s financial information "circulated in WhatsApp closely matched the quarterly financial results of HDFC Bank for June 2017", the regulator said on Friday. This could not have been possible without the "leakage of information" from a person, or people, privy to the information, SEBI said. It said this pointed to the inadequacy of the processes and systems that HDFC Bank has in place. HDFC Bank, the biggest of the Indian private sector lenders and second-biggest overall by assets, has been ordered to investigate the issue and take action against those responsible within three months and report back to SEBI. An HDFC Bank spokesman said he had yet to read the order, but added the bank would comply with it. "We`re a conscientious, law-abiding company with the highest standards of corporate governance," he said. SEBI had sent a direction to Axis Bank on the issue in December asking it to conduct a similar inquiry. The bank said it would work with SEBI to investigate the matter and take action as needed. The Reuters report has sparked a broad SEBI investigation since December, including raids on brokers` homes that resulted in the confiscation of laptops and mobile phones.

Indian regulator orders HDFC Bank to probe suspected results leak

SEBI on Friday asked HDFC Bank to identify individuals, including bank officials responsible for the leakage of its financial results, as the markets regulator has found inadequate controls at the lender as &#39;prima facie&#39; reason for the leak.

In the high-profile leakage case where sensitive financial details of various companies, including HDFC Bank, got leaked on WhatsApp before their formal announcement, SEBI virtually censured the top private sector lender and asked it to strengthen the systems and controls to check any such leak in future.

&quot;HDFC Bank shall strengthen its processes/ systems/ controls forthwith to ensure that such instances of leakage of unpublished price sensitive information do not recur in future,&quot; the Securities and Exchange Board of India (SEBI) said in an order.

SEBI has also directed the bank to submit a report on the present systems and controls and how they have been strengthened, who are the persons responsible for monitoring such systems and the periodicity of monitoring.

&quot;HDFC Bank shall conduct an internal inquiry into the leakage of unpublished price sensitive information relating to its financial figures including NPA (non-performing asset) results and take appropriate action against those responsible for the same, in accordance with law,&quot; SEBI said.

HDFC Bank has to complete the inquiry within three months and file a report to SEBI within seven days thereafter, the regulator said.&nbsp;

In the high-profile leakage case where sensitive financial details of various companies, including HDFC Bank, got leaked on WhatsApp before their formal announcement, SEBI virtually censured the top private sector lender and asked it to strengthen the systems and controls to check any such leak

SEBI on Friday asked HDFC Bank to identify individuals, including bank officials responsible for the leakage of its financial results, as the markets regulator has found inadequate controls at the lender as 'prima facie' reason for the leak. In the high-profile leakage case where sensitive financial details of various companies, including HDFC Bank, got leaked on WhatsApp before their formal announcement, SEBI virtually censured the top private sector lender and asked it to strengthen the systems and controls to check any such leak in future. "HDFC Bank shall strengthen its processes/ systems/ controls forthwith to ensure that such instances of leakage of unpublished price sensitive information do not recur in future," the Securities and Exchange Board of India (SEBI) said in an order. SEBI has also directed the bank to submit a report on the present systems and controls and how they have been strengthened, who are the persons responsible for monitoring such systems and the periodicity of monitoring. "HDFC Bank shall conduct an internal inquiry into the leakage of unpublished price sensitive information relating to its financial figures including NPA (non-performing asset) results and take appropriate action against those responsible for the same, in accordance with law," SEBI said. HDFC Bank has to complete the inquiry within three months and file a report to SEBI within seven days thereafter, the regulator said.

Whatsapp leak: SEBI asks HDFC Bank to probe matter

The Securities and Exchange Board of India (SEBI) late on Wednesday barred Price Waterhouse from auditing listed companies in the country for two years, after a probe into a nearly decade-old accounting fraud case in a software services company that became India&#39;s biggest corporate scandal.

Ramalinga Raju, founder and former chairman of the erstwhile software services exporter Satyam Computer Services, stunned Indian markets and investors in January 2009, when he admitted that the firm had overstated earnings and assets for several years, in a fraud of more than $1 billion sometimes referred to as &quot;India&#39;s Enron&quot;.

Price Waterhouse was Satyam&#39;s auditor during the period in which the fraud was perpetrated.

In its order, the SEBI, on Wednesday said any entities or firms practicing as chartered accountants in India under the brand and banner of PW, shall not directly or indirectly issue any certificate of audit of listed companies, or their intermediaries that are registered with the regulator for a period of two years.

&quot;The network structure of operations adopted by the international accounting firm should not be used as a shield to avoid legal implications arising out of the certifications issued under the brand name of the network,&quot; SEBI said in a 108-page order.

In India, all audit functions within the group are conducted under the Price Waterhouse (PW) brand, with a network of local firms operating under the banner. The broader PwC entity handles consulting, tax advisory and other businesses.

&quot;The SEBI order relates to a fraud that took place nearly a decade ago in which we played no part and had no knowledge of,&quot; Price Waterhouse said in a release.

&quot;There has been no intentional wrong doing by PW firms in the unprecedented management perpetrated fraud at Satyam, nor have we seen any material evidence to the contrary,&quot; said Price Waterhouse, adding it was confident of getting a court to stay the order before it becomes effective.

To avoid operational difficulties, SEBI said its order will not impact audit assignments relating to the ongoing 2017-18 financial year, already undertaken by firms forming part of the PW network.

SEBI also ordered Price Waterhouse, Bangalore and two of its erstwhile partners to jointly forfeit &quot;wrongful gains&quot; of about 131 million rupees ($2.06 million) plus interest within 45 days.

Indian IT firm Tech Mahindra, part of the Mahindra Group, bought control of Satyam in an auction in April 2010.

Satyam and PricewaterhouseCoopers agreed in 2011 to pay a combined $17.5 million to settle U.S. probes into the accounting fraud.

In India, all audit functions within the group are conducted under the Price Waterhouse (PW) brand, with a network of local firms operating under the banner.

The Securities and Exchange Board of India (SEBI) late on Wednesday barred Price Waterhouse from auditing listed companies in the country for two years, after a probe into a nearly decade-old accounting fraud case in a software services company that became India's biggest corporate scandal. Ramalinga Raju, founder and former chairman of the erstwhile software services exporter Satyam Computer Services, stunned Indian markets and investors in January 2009, when he admitted that the firm had overstated earnings and assets for several years, in a fraud of more than $1 billion sometimes referred to as "India's Enron". Price Waterhouse was Satyam's auditor during the period in which the fraud was perpetrated. In its order, the SEBI, on Wednesday said any entities or firms practicing as chartered accountants in India under the brand and banner of PW, shall not directly or indirectly issue any certificate of audit of listed companies, or their intermediaries that are registered with the regulator for a period of two years. "The network structure of operations adopted by the international accounting firm should not be used as a shield to avoid legal implications arising out of the certifications issued under the brand name of the network," SEBI said in a 108-page order. In India, all audit functions within the group are conducted under the Price Waterhouse (PW) brand, with a network of local firms operating under the banner. The broader PwC entity handles consulting, tax advisory and other businesses. "The SEBI order relates to a fraud that took place nearly a decade ago in which we played no part and had no knowledge of," Price Waterhouse said in a release. "There has been no intentional wrong doing by PW firms in the unprecedented management perpetrated fraud at Satyam, nor have we seen any material evidence to the contrary," said Price Waterhouse, adding it was confident of getting a court to stay the order before it becomes effective. To avoid operational difficulties, SEBI said its order will not impact audit assignments relating to the ongoing 2017-18 financial year, already undertaken by firms forming part of the PW network. SEBI also ordered Price Waterhouse, Bangalore and two of its erstwhile partners to jointly forfeit "wrongful gains" of about 131 million rupees ($2.06 million) plus interest within 45 days. Indian IT firm Tech Mahindra, part of the Mahindra Group, bought control of Satyam in an auction in April 2010. Satyam and PricewaterhouseCoopers agreed in 2011 to pay a combined $17.5 million to settle U.S. probes into the accounting fraud.

SEBI bars Price Waterhouse from auditing listed firms for two years

The Supreme Court today took strong exception to the Sahara group writing a letter to the Pune police raising the issue of law and order at its Aamby Valley property, which is undergoing a court-mandated auctioning process.

Taking note of SEBI&#39;s allegation in this regard, a bench headed by Justice Dipak Misra said the group should not have entered into a communication with Pune&#39;s Superintendent of the Police (Rural) on the issue since the auction has been ordered by the top court.

The bench, also comprising Justices Ranjan Gogoi and A K Sikri, directed the Director General of Police, Maharashtra to see that the property is handed over to the official liquidator of the Bombay High Court within 48 hours.

&quot;If any impediment is caused in the auctioning process by anyone, he shall be liable of contempt of this court and sent to jail,&quot; the bench said.

The apex court asked the official liquidator to go ahead with the auctioning process under the direct supervision of the company judge.

The bench also said the official liquidator shall take guidance from Justice A S Oka, sitting judge of the Bombay High Court, in the matter.

At the outset, senior advocate Arvind Datar, appearing for the SEBI, referred to the communication addressed to the SP of police and claimed that due to this, the police has taken over the custody of the property.

Senior advocate Mukul Rohatgi, representing the Sahara group, countered the submission and said the custody of the property has not been handed over to the police and &quot;completely wrong statements are being made to prejudice the court.&quot;

The bench, however, clarified that they were not initiating any contempt action at this stage.

The top court was hearing SEBI&#39;s plea seeking contempt action against the Sahara group for allegedly obstructing the auctioning process of Aamby Valley.

Taking note of SEBI's allegation in this regard, a bench headed by Justice Dipak Misra said the group should not have entered into a communication with Pune's Superintendent of the Police (Rural) on the issue since the auction has been ordered by the top court

The Supreme Court today took strong exception to the Sahara group writing a letter to the Pune police raising the issue of law and order at its Aamby Valley property, which is undergoing a court-mandated auctioning process. Taking note of SEBI's allegation in this regard, a bench headed by Justice Dipak Misra said the group should not have entered into a communication with Pune's Superintendent of the Police (Rural) on the issue since the auction has been ordered by the top court. The bench, also comprising Justices Ranjan Gogoi and A K Sikri, directed the Director General of Police, Maharashtra to see that the property is handed over to the official liquidator of the Bombay High Court within 48 hours. "If any impediment is caused in the auctioning process by anyone, he shall be liable of contempt of this court and sent to jail," the bench said. The apex court asked the official liquidator to go ahead with the auctioning process under the direct supervision of the company judge. The bench also said the official liquidator shall take guidance from Justice A S Oka, sitting judge of the Bombay High Court, in the matter. At the outset, senior advocate Arvind Datar, appearing for the SEBI, referred to the communication addressed to the SP of police and claimed that due to this, the police has taken over the custody of the property. Senior advocate Mukul Rohatgi, representing the Sahara group, countered the submission and said the custody of the property has not been handed over to the police and "completely wrong statements are being made to prejudice the court." The bench, however, clarified that they were not initiating any contempt action at this stage. The top court was hearing SEBI's plea seeking contempt action against the Sahara group for allegedly obstructing the auctioning process of Aamby Valley.

Aamby Valley auctioning: SC irked over Sahara's letter to cops

India imposed trading restrictions on 162 listed entities identified as shell companies, a surprise move that analysts said was part of a broad crackdown on illegal offshore transfers and tax evasion.

The announcement by the Securities Exchange Board of India (SEBI) late on Monday did not say what illegal activities the companies may have been engaged in.

The restrictions include limiting trading in the affected companies to once a month and curbs in the trading of shares held by the promoters and directors of the companies.

The government has been going after companies it suspects of engaging in irregular transactions after a ban on high-value currency bills late last year, including transferring money abroad illegally, or &quot;black money,&quot; and evading taxes.

Some analysts said the trading restrictions had taken investors by surprise.

&quot;(Investors) should wait for the full facts to emerge,&quot; Amit Tandon, founder and managing director of shareholder rights group Institutional Investor Advisory Services, said in a chat room operated by Reuters.

&quot;If these companies indeed have been used for money-laundering, then strict penal action needs to be taken. If not, they need to be excluded from this order.&quot;

SEBI did not immediately respond to a request for comment.

SQS India BFSI Ltd, one of the companies identified in the list, expressed shock at its inclusion in the list.

&quot;We would like to categorically state that the company has been following all the rules and regulations,&quot; it said in an exchange filing.

&quot;We, therefore, find it quite shocking that the company has been placed under this surveillance list.&quot;

The restrictions include limiting trading in the affected companies to once a month and curbs in the trading of shares held by the promoters and directors of the companies

India imposed trading restrictions on 162 listed entities identified as shell companies, a surprise move that analysts said was part of a broad crackdown on illegal offshore transfers and tax evasion. The announcement by the Securities Exchange Board of India (SEBI) late on Monday did not say what illegal activities the companies may have been engaged in. The restrictions include limiting trading in the affected companies to once a month and curbs in the trading of shares held by the promoters and directors of the companies. The government has been going after companies it suspects of engaging in irregular transactions after a ban on high-value currency bills late last year, including transferring money abroad illegally, or "black money," and evading taxes. Some analysts said the trading restrictions had taken investors by surprise. "(Investors) should wait for the full facts to emerge," Amit Tandon, founder and managing director of shareholder rights group Institutional Investor Advisory Services, said in a chat room operated by Reuters. "If these companies indeed have been used for money-laundering, then strict penal action needs to be taken. If not, they need to be excluded from this order." SEBI did not immediately respond to a request for comment. SQS India BFSI Ltd, one of the companies identified in the list, expressed shock at its inclusion in the list. "We would like to categorically state that the company has been following all the rules and regulations," it said in an exchange filing. "We, therefore, find it quite shocking that the company has been placed under this surveillance list."

SEBI imposes trading curbs on suspected shell companies

By Yoshita Rao

A possible increase in short-term capital gains (STCG) tax could be on the agenda in the Budget for 2017 along with higher levy on dividends earned, a report by Business Standard said on Tuesday.

The federal government has already started gathering feedback from key market participants like Securities and Exchange Board of India (SEBI) and the stock exchanges, the report added.

The STCG, which is profits on sale of shares held for less than a period of 12 months, is presently taxed at 15 per cent.

On Saturday, Prime Minister Narendra Modi in his speech said that tax collection from capital markets players is low majorly because of illegal activities.

&ldquo;Those who profit from financial markets must make a fair contribution to nation-building through taxes. For various reasons, the contributions of tax from those who make money on the markets has been low...Low or zero tax rates are given to certain types of financial income. I call upon you to think about the contribution of market participants to the exchequer,&rdquo; PM Modi said.

Shortly after, finance minister, Arun Jaitley, clarified that changes to the long-term capital gains (LTCG), which are currently tax free, will not be made.

However, regarding the consultation of the government with the market regulators, the report said that an announcement regarding the tax on STCG could be expected on February 1, 2017.

The markets on Monday reacted negatively to PM Modi&#39;s announcement.

The report says that currently, besides the dividend distribution tax (DDT) paid by companies, an additional 10 per cent is levied on individuals earning dividend income in excess of Rs 10 lakh annually. The move could increase the effective tax on dividends to 30 per cent&nbsp;for those in the high-income bracket.

Business Standard quoted market players who said that increasing the STCG would be a double whammy for investors as they are currently paying securities transaction tax (STT) on all trades.

The government collects nearly Rs 7,400 crore annually through STT, the report added.

The government has also asked stock exchanges to suggest measures to crack down on tax evasion through penny stocks and the report said that the exchanges have submitted their recommendations to the finance ministry.

The income tax department has unearthed Rs 38,000 crore involving around 1,000 entities who deal in penny stocks, the report said.

(WION)

The federal government has already started gathering feedback from key market participants like Securities and Exchange Board of India

By Yoshita Rao A possible increase in short-term capital gains (STCG) tax could be on the agenda in the Budget for 2017 along with higher levy on dividends earned, a report by Business Standard said on Tuesday. The federal government has already started gathering feedback from key market participants like Securities and Exchange Board of India (SEBI) and the stock exchanges, the report added. The STCG, which is profits on sale of shares held for less than a period of 12 months, is presently taxed at 15 per cent. On Saturday, Prime Minister Narendra Modi in his speech said that tax collection from capital markets players is low majorly because of illegal activities. “Those who profit from financial markets must make a fair contribution to nation-building through taxes. For various reasons, the contributions of tax from those who make money on the markets has been low...Low or zero tax rates are given to certain types of financial income. I call upon you to think about the contribution of market participants to the exchequer,” PM Modi said. Shortly after, finance minister, Arun Jaitley, clarified that changes to the long-term capital gains (LTCG), which are currently tax free, will not be made. However, regarding the consultation of the government with the market regulators, the report said that an announcement regarding the tax on STCG could be expected on February 1, 2017. The markets on Monday reacted negatively to PM Modi's announcement. The report says that currently, besides the dividend distribution tax (DDT) paid by companies, an additional 10 per cent is levied on individuals earning dividend income in excess of Rs 10 lakh annually. The move could increase the effective tax on dividends to 30 per cent for those in the high-income bracket. Business Standard quoted market players who said that increasing the STCG would be a double whammy for investors as they are currently paying securities transaction tax (STT) on all trades. The government collects nearly Rs 7,400 crore annually through STT, the report added. The government has also asked stock exchanges to suggest measures to crack down on tax evasion through penny stocks and the report said that the exchanges have submitted their recommendations to the finance ministry. The income tax department has unearthed Rs 38,000 crore involving around 1,000 entities who deal in penny stocks, the report said. (WION)

Short-term capital gains tax may increase to 20% in India's 2017 Budget

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