The Securities and Exchange Board of India (Sebi), the firm and the directors will have to refund the money raised through issuance of RPS, with an annual interest of 15 per cent till the date of actual payment.
According to Sebi, during the period from April 2007 to November 2009, the individual had entered into agreements with investors and collected funds from them and invested the amounts in the securities market on their behalf.
Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do
“This pattern of repeated allotment in small tranches appears to have been done solely for the purpose of circumventing the applicability … of the Companies Act and consequent regulatory compliances,” he said in an eight-page order.
According to Sebi data, the number of FPIs with the regulator’s approval rose to 8,511 at the end of July 2017, from 7,807 at March-end, an addition of 704.
Portfolio management services could also be allowed to participate in commodity futures, says S K Mohanty, executive director, Sebi
Spelling out the eligibility criteria, Sebi said the applicant should have been in operation for at least five years and should have registered profit for at least three years during the last five financial years.
Market regulator Sebi has revoked the trading ban imposed on 114 entities saying it did not find any adverse evidence against them.
At present, the markets also have 15 minutes each of pre-open and post-closing sessions within the overall schedule of 9 am to 3.30 pm. Last time, the trade timings were changed in 2009 when opening time was changed from 9.45 am to 9 am.
The circular has come at a time when there are rising incidents of cyber attacks. Sebi has said the cyber security policy of the RTAs should be approved by the respective boards.
Capital market regulator also proposes to cap cross holding in registered rating agencies to 10%
Penalty imposed by Sebi is one of the highest ever on any entity, individuals
These were among the entities that were barred through separate interim orders by Sebi for alleged violation of rules purportedly for misuse of stock exchange platforms for tax evasion and other illicit gains.
Since the beginning of this calendar year, foreign investors have bought a net of $19.95 billion in Indian debt and $6.9 billion in equities. As a result of strong inflows the rupee has appreciated 5.9 per cent against the dollar this year.
Sebi had set up the 21-member committee on June 2 to advise it on issues relating to corporate governance. It includes representatives from companies, stock exchanges, professional bodies, investor groups, law firms, academicians, research professionals and Sebi officials.