SEBI has issued directions to MCX-SX Limited and MCX-SX Clearing Corporation Limited (MCX-SXCCL) to strengthen their governance structure while granting the renewal of recognition to MCX-SX Limited for a period of one year commencing from September 16, 2013. The conditions imposed by SEBI are :
It may be noted that the Reserve Bank of India had announced the revised guidelines for overseas direct investment by Indian parties on August 14, 2013. This measure had been taken in the context of current macro-economic situation. It was not the intention of the Reserve Bank of India to restrict bona-fide and genuine overseas direct investment transactions by Indian companies.
SEBI would like to appreciate the effort and time that has been put in by IMF and World Bank team to assess the Indian securities market including the securities settlement systems and central counterparties in the securities markets. The third party assessments and suggestions like the ones provided by the FSAP are very important to us as it highlights areas that may contribute toward further improvement of the system.
Investment by a registered FII under the Portfolio Investment Scheme would be permitted up to 24% only in the CICs listed at the Stock Exchanges, within the overall limit of 49% for foreign investment.
All the persons acting as an investment adviser before the commencement of IA Regulations are advised to make their application for grant of registration before October 21, 2013 to continue to do so and shall comply with the requirement of obtaining a certificate of registration for acting as investment adviser under the IA regulations.
immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites, etc. in relation to their investment advisory and portfolio management activities or any unregistered activity in the securities market.
Clause-41 of Equity Listing Agreement provides the framework for preparation, authentication and submission of Financial Results by listed companies. Based on the requests/ suggestions/ recommendations received from various market participants, some of the provisions of Clause-41 have been revised. It is proposed to replace the existing Clause-41 of Equity Listing Agreement with the draft placed at Annexure to discussion paper.
The Board has approved the proposal to declare illegal mobilization of funds without obtaining a certificate under the SEBI (Collective Investment Schemes) Regulations, 1999 as a fraudulent and unfair trade practice. As such, it has been decided to amend the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, accordingly.
On the domestic front, the foreign exchange market came under severe stress starting late May, prompting the Reserve Bank to initiate liquidity tightening measures to contain the volatility. As regards economic activity, risks to growth have increased notwithstanding the robust onset and spread of the monsoon.
As part of SEBI’s constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process, the following changes to buyback of shares or other specified securities from the open market through stock exchange mechanism have been approved:
