PMAC had examined the issue at its meeting last week following criticism from several quarters. “The general view was to let the grading continue for some more time. Though, globally such a condition was not applicable in any market, it was felt, any experience on this count would benefit other regulators as well,” said a person associated with the exercise.

The amendments have been made after representations from entities requested Sebi to bring about further clarity on the amendment (made on April 8) where the promoter of a listed company is a listed or an unlisted entity. A Sebi release said, “If the promoter is a listed entity, its directors —other than the independent directors, its employees, or its nominees — shall be deemed to be related to it.” But, “if the promoter is an unlisted entity, its directors, employees or nominees shall be deemed to be related to it.”

Market regulator Securities and Exchange Bureau of India (SEBI) has asked stock brokers and trading members to complete internal auditing on a half yearly basis from chartered accountants, company secretaries or cost and management accountants.

SEBI has removed the restriction of the 70:30 ratio of investment in Indian equity and debt by FIIs. The removal is with immediate effect, said a statement from SEBI on Thursday. The necessary amendments to the regulations will be made in due course.This is to give flexibility to the FIIs to help avail themselves of the increased cumulative debt investment limit of $6 billion in corporate debt that was announced on Wednesday. The earlier cap had been $3 billion.

Even as the Institute of Chartered Accountants of India (ICAI) is wrapping up its study on the valuation process in initial public offers, capital market regulator SEBI has asked the accounting body to study IPO reforms. Officials in the know say ICAI will suggest ways to make accounting treatment of IPOs more stringent, and find out ways for an efficient oversight on management of IPO funds.

The country’s most powerful regulators, SEBI and RBI, may soon be left with fewer responsibilities if the government has its way. The finance ministry is thinking of taking away the regulators’ mandate to develop markets so that their regulatory concerns and caution on new products and markets do not come in the way of developing new instruments and markets.

In continuation with the Circular No.F.1/5/SE/ 83 dated May 31, 1984 of Government of India, Ministry of Finance, Department of Economics Affairs, Stock Exchange Division, you are advised to direct your stock brokers/clearing members to carry out complete internal audit on a half yearly basis by independent qualified Chartered Accountants.

INCOME TAX CIRCULAR NO-2/2008, Dt: February 22, 2008 Securities and Exchange Board of India (SEBI) vide circular No.-MRD/DoP/SE/Dep/ Cir14/2007 dated 20/12/2007, has decided to permit all classes of investors (individuals, institutional, etc.) to short sell. Further, with a view to provide a mechanism for borrowing of securities to enable settlement of securities sold short, SEBI has also decided to put in place a full-fledged Securities Lending and Borrowing (SLB) Scheme for all market participants in the Indian securities market under the overall framework of “Securities Lending Scheme”, 1997″ of SEBI (Circular No.SMD/Policy/ SL/CIR-09/ 97 dated May 07, 1997).

Companies shall be required to appoint agencies to monitor the utilisation of funds raised through public and rights issues, and report any deviation in utilisation to the stock exchanges, the Securities and Exchange Board of India announced on Thursday. They will also have to make public the adverse comments of their audit committee (or of the monitoring agency they have appointed) through advertisements in the newspapers.

The government on Monday asked the investors planning to put their money in IPOs to check with the Ministry of Corporate Affairs on issues like the promoters’ track record and regulatory compliances. Investors should verify the track record of the company and its promoters, compliance status with various regulations and whether any of its officers had been found guilty of economic offence, the Ministry of Corporate Affairs said.