INSUBCONTINENT EXCLUSIVE:
Sebi Chairperson Madhabi Puri Buch (Photo: PTI)4 min read Last Updated : Sep 30 2024 | 9:57 AM ISTSebi board meeting today, Sebi news: The
Securities and Exchange Board of India (Sebi) board is scheduled to meet today, September 30, 2024
Sebi board meeting today comes in the backdrop of allegations of conflict of interest levelled against Sebi Chairperson Madhabi Puri Buch by
US-based Hindenburg Research.
Additionally, India's Congress party, too, has accused the Sebi Chairperson of using unpublished price
sensitive information and, thus, reaping monetary benefits by trading in listed securities when she was a whole-time member of Sebi.Click
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Initially, Sebi attributed the unrest to external factors but later retracted that claim following
discuss the tightening of regulations for futures and options (F-O) trading, driven by major losses incurred by individual
traders.
Business Standard has previously reported that Sebi may look to notify stricter norms for derivatives trading, aimed at
containing speculative trading activity and curtailing losses of over Rs 50,000 crore incurred by retail investors every year
Detailed consultations are underway to facilitate the distribution of these funds.
The markets watchdog proposed to streamline rights
issues by eliminating the need for companies to file a draft letter of offer
Essential details like purpose, pricing, and entitlement ratio will suffice, significantly reducing the approval time.
Additionally,
proposals to simplify certification for research analysts and investment advisors include allowing a graduate degree instead of a
further aims to boost insider trading regulations by broadening the definition of "connected persons" and including new categories
This aligns definitions with the Income Tax Act and adds individuals with significant financial ties.
To expedite enforcement against
classification for merchant bankers is proposed, separating them into two categories based on net worth
Existing firms will have a two-year transition period to comply with the new requirements.
Sebi may also discuss establishing a
Performance Validation Agency to verify performance claims made by registered intermediaries like investment advisors and portfolio
managers.Sebi employee dissatisfaction, Hindenburg claims
According to market experts, employee dissatisfaction may be discussed
informally by the Sebi board today, with measures to address and resolve these issues anticipated.
Additionally, while the allegations
from Hindenburg Research and the Congress party may not be formally discussed, they are expected to be touched upon
informally.BackgroundEarlier, Hindenburg Research had accused Buch and her husband of holding investments in offshore funds linked to Vinod
Adani, the brother of Adani Group chairman Gautam Adani.
The report alleged these funds were used to manipulate stock prices of the Adani
Group's listed companies in India.
Furthermore, it claimed that Sebi altered rules regarding real estate investment trusts (REITs) to
benefit Blackstone, where Buch's husband serves as a senior advisor.
The Congress party also accused Buch of trading in listed securities
and selling employee stock options from her tenure at ICICI Bank while she was at Sebi
They allege she profited from her advisory firm, potentially breaching Sebi's conflict of interest regulations.
Both Buch and Sebi have
denied these allegations, but the board has yet to release an official statement
Sebi's board is composed of Buch, four whole-time members, and three part-time members from the finance ministry, corporate affairs
