Securities and Exchange Board of India (Sebi) | Business Upturn

SEBI withdraws directions to MCX and MCXCCL on commodity derivative platform

Vanshika Lodhi — Mon, 09 Oct 2023 04:05:42 +0000

In a significant development, the Securities and Exchange Board of India (SEBI) has withdrawn its directions to Multi Commodity Exchange of India Ltd (MCX) and MCX Clearing Corporation Ltd (MCXCCL) to keep the proposed Go-Live of the new Commodity Derivative Platform (CDP) in abeyance.

This decision comes after the SEBI Technical Advisory Committee recommended that MCX and MCXCCL may proceed with the CDP. The committee also advised them to intimate SEBI regarding the proposed date for Go Live.

Previously, SEBI had advised to keep in abeyance the proposal to Go-live with the new CDP. This was in response to a complaint by Chennai Financial Markets and Accountability (CFMA) regarding the new CDP. Following due process, replies from MCX and MCXCCL on the CFMA complaint were submitted to SEBI.

Further information about this development will be available on the official website of MCX.

SEBI extends timelines for submission of PAN, nomination & KYC details

Vanshika Lodhi — Wed, 27 Sep 2023 03:59:28 +0000

The Securities and Exchange Board of India (SEBI) has announced an extension of the timelines for the submission of PAN, Nomination, and KYC details by physical security holders. This move comes as a relief to investors who were struggling to meet the previous deadlines due to various reasons.

SEBI has also extended the timeline for nomination in eligible demat accounts. This decision is expected to provide ample time for investors to make informed decisions and complete the necessary formalities without any rush. SEBI has introduced a voluntary nomination facility for trading accounts. This new provision allows investors to nominate a person who can claim the securities in case of the investor’s demise. This step is seen as a significant move towards protecting the interests of investors and ensuring smooth transition of securities.

These extensions and introductions are part of SEBI’s continuous efforts to safeguard investors’ interests and enhance the overall efficiency of the securities market. Investors are advised to take note of these changes and complete the necessary formalities within the extended timelines.

SEBI’s proposed fee collection portal for advisors invites mix response

Adesh Dixit — Tue, 29 Aug 2023 11:41:15 +0000

The Securities and Exchange Board of India (SEBI) wants to develop a closed ecosystem where clients’ fees can be collected by certified investment advisors and research analysts. This will make it easier for investors to spot and steer clear of unregistered firms.

This is a part of SEBI’s larger effort to safeguard investors from finfluencers and other unregistered entities that might mislead or take advantage of them.

According to a different SEBI consultation document, registered firms or intermediaries should not work with unregistered finfluencers to advertise or promote their services.

According to SEBI regulations, clients that pay investment advisors (IAs) fees must do so in a way that demonstrates the funds’ traceability. Cash payments for fees are not permitted. The same is true for research analysts (RAs), who demand payment for the services they provide.

Numerous unregistered entities have deceived investors throughout the years in violation of IA and RA requirements. The regulator believes that it is necessary to aggressively limit their rise.

Clients must pay fees on selected platforms that are specified by a SEBI-recognized regulatory authority, according to SEBI’s consultation document on the proposed escrow-based approach.

The specifics of the selected bank accounts where fees will be received will be provided by IAs or RAs.

The only purpose of these designated bank accounts would be to receive fees from investment advice and research activities.

“SEBI is in favor of developing a transparent framework for all investors and registered entities. One such mechanism to safeguard investment interests is this. Investors will have more confidence as a result of the system. The key to the new planned mechanism’s success, according to Priyadarshini Mulye, founder of ARTHA FinPlan and a SEBI-registered financial advisor, will be awareness.

Investors may not like SEBI’s proposal that any payments made outside the designated system will not be deemed payments for investment advice or research services. As a result, SEBI or a recognized regulatory authority will not take complaints in this regard.

“SEBI is undoubtedly investigating a wide range of fininfluencer-related concerns and wants to confirm that the client is paying the licensed advisor directly. However, it’s still the same general query. The regulated are still being regulated. What about those who lack authority? Who is going to listen to those people who are paying outside the system and are taken advantage of? asked Kalpesh N. Ashar, the founder of Full Circle Financial Planners and Advisors and a SEBI-registered investment advisor.

According to experts, the consultation paper does not adequately address the problem of the general public’s continued ignorance of registered advisors or even SEBI. There are worries that many people would still fall for it if an unregistered organization or a con artist phones an investment and promises 30-35-40 percent profits.

“It is crystal evident that SEBI is handling the situation on their own. From the perspective of SEBI, it is quite convenient to state that we will not consider your complaint if you do not use this payment channel. Suresh Sadagopan, a Principal Officer of Ladder7 Wealth Planners Pvt. Ltd. and a SEBI-registered financial advisor, declared that it was undoubtedly not helpful to investors.

New investors currently scarcely have a way to distinguish between paying registered firms for investing advice and research services or neither.

Some experts believe that the lack of a redressal option in the event that you pay your adviser outside of the intended filtration method may serve as an incentive for investors to solely use registered IAs or RAs for advice or services.

The regulator ordered earlier this year that IAs obtain prior regulatory body approval before engaging in any internal or external communications with current or potential clients.

IAs’ ability to supply services to their clients has been delayed as a result, which has increased their costs. For each application that is approved, individual advisors, for instance, must pay processing fees of Rs 3,000. In some circumstances, it may take weeks to receive the regulatory body’s permission.

SEBI is looking for feedback from interested parties on the paper through September 15 and is asking for their thoughts on whether the proposed fee collection system for IAs and RAs should be either optional or mandatory.

The proposed new SEBI mechanism for RIAs to collect their fees would require a significant advertising campaign to inform investors of the proper (and possibly only) method of paying their financial advisors, according to experts, if it were to be enacted and made mandatory. They claim it will be along the lines of “Mutual Fund Sahi Hai” by the Association of Mutual Funds of India (AMFI; the trade association for the mutual fund sector).

SEBI contemplates delisting via fixed price; New rules on corporate disclosures in pipeline

Viditha Ganji — Mon, 24 Jul 2023 13:32:10 +0000

The Securities and Exchange Board of India (SEBI) is mulling over a significant change in the delisting process, with Chairperson Madhabi Puri Buch announcing on Monday that the regulator will explore the possibility of allowing companies to delist via a fixed price mechanism, instead of the conventional reverse book-building procedure. The move comes as SEBI aims to streamline the delisting process and enhance price discovery efficiency.

Currently, delisting companies adopt the reverse book-building method, wherein they capture sell orders from shareholders through Book Running Lead Managers (BRLMs) during a specified period. The process involves offers being collected from shareholders at various prices, equal to or above the floor price, with the final buyback price determined after the offer closing date.

To foster greater participation and provide a viable alternative, SEBI is considering the introduction of a fixed price mechanism, which would allow promoters to place a delisting offer at a predetermined price for shareholders to evaluate and respond. This approach is expected to simplify the delisting process, making it more accessible and transparent for all stakeholders involved.

In line with these developments, SEBI is set to issue a discussion paper on the subject by December, seeking inputs and opinions from market participants before finalizing the regulatory changes.

Furthermore, the market regulator is looking to bolster rules governing corporate disclosures related to insider trading regulations. The move is aimed at promoting greater transparency and integrity in the trading of securities, ensuring that all market participants have access to essential information and are equipped to make informed decisions.

Regarding mutual fund fee structures, Buch mentioned that SEBI is actively considering a revamp, and the feedback received from the industry is currently under review. This move aims to promote a fair and equitable fee structure for mutual fund investors, fostering a conducive environment for growth in the mutual fund industry.

The proposed changes are part of SEBI’s ongoing efforts to enhance market efficiency, safeguard investor interests, and maintain the integrity of India’s financial markets. By exploring innovative approaches and soliciting feedback from stakeholders, the regulator seeks to create a more robust and investor-friendly ecosystem for the benefit of all market participants. As SEBI’s initiatives progress, market participants and investors eagerly await the implementation of these critical regulatory updates.

SEBI expands opportunities for Mutual Funds: Introduces five new categories under ESG scheme with focus on disclosure framework

Viditha Ganji — Thu, 20 Jul 2023 15:14:49 +0000

In a significant move to promote responsible investing and sustainable practices, the Securities and Exchange Board of India (SEBI) has given the green light for mutual funds to launch five new categories under the Environmental, Social, and Governance (ESG) scheme. The regulator’s decision comes with the stipulation that mutual funds must also implement a robust disclosure framework.

The newly introduced categories under the ESG scheme include exclusions, integration, best-in-class and positive screening, impact investing, and sustainable objectives. This expansion is expected to open up avenues for mutual funds to align their investment strategies with ESG principles, driving positive change in the financial sector.

SEBI’s circular emphasized the importance of enhanced disclosures and mitigation of greenwashing, indicating its commitment to ensuring transparency and accountability within the investment landscape. The provision of the new ESG categories will be effective immediately, encouraging fund managers to explore sustainable investment options for their clients.

Regarding disclosure requirements, SEBI mandates mutual funds to clearly state the name of the ESG strategy in the concerned ESG fund’s title. Additionally, monthly portfolio statements of ESG schemes should include security-wise BRSR (Business Responsibility and Sustainability Reporting) Core scores, along with the names of ESG Rating Providers (ERPs) and their respective ESG scores.

To foster green financing and reinforce ESG commitment, SEBI has set a requirement for ESG schemes to invest a minimum of 65% of their assets under management (AUM) in listed entities with assured BRSR Core scores. The remaining AUM can be invested in companies that have BRSR disclosures. This regulation will take effect on October 1, 2024.

Furthermore, any changes in ERPs used by mutual funds must be disclosed in subsequent monthly portfolio statements. This measure aims to ensure transparency and informed decision-making for investors.

As part of SEBI’s ongoing efforts to enhance transparency, Asset Management Companies (AMCs) will now be required to disclose votes cast on their websites on a quarterly basis, along with specific rationales supporting their voting decisions. This will provide investors with greater insight into the voting actions of ESG schemes. Notably, AMCs will need to categorically disclose whether resolutions were supported or not due to environmental, social, or governance reasons. This new disclosure requirement will be effective from April 1, 2024, onward.

With these progressive measures, SEBI is bolstering India’s sustainable finance ecosystem, encouraging mutual funds to embrace ESG principles, and empowering investors to make informed decisions that align with their ethical and social values.

Flair Writing Industries files DRHP for Rs 745 crore IPO

Avinash Ram — Sun, 16 Jul 2023 07:59:13 +0000

The owner of the “Flair” brand, which has been a household name for more than 45 years, Flair Writing Industries Limited (“The Company”), has submitted its Draft Red Herring Prospectus (“DRHP”) to market watchdog Securities and Exchange Board of India (“SEBI”) for an Initial public offering.

A total of 745 crore rupees worth of equity capital (face value: 5) will be raised by the company. The entire amount of the offer consists of (i) a new equity share issue with a maximum value of 365 crore and (ii) an equity share offer for sale with a maximum value of 380 crore. The corporation is the dominant player in the Indian pen and writing instrument market, according to a CRISIL assessment, with financial year 2023 sales of 754.18 crore rupees. As of March 31, 2023, it had a market share of about 9% in India’s entire market for writing and creative instruments.

The Company plans to use the net proceeds of the Fresh Issue to fund the following goals: (i) establishing a new writing instrument manufacturing facility in Gujarat’s Valsaddistrict at an estimated cost of 95.62 crore; (ii) funding the company’s and its subsidiary’s capital expenditures at an estimated cost of 86.75 crore; and (iii) funding the company’s and its subsidiaries’ working capital needs at an estimated cost of FWEPL(1) and FCIPL(2). With a revenue of 915.55 crore in the financial year 2023, the Company ranks among the top three companies in the entire writing instruments industry. When compared to the growth rate of the writing and creative instrument business as a whole, the Company is also one of the top two organized companies with greater revenue growth. Between the fiscal years 2017 and 2023, the industry expanded at a CAGR of 5.5%; over the same time period, it expanded at a CAGR of roughly 14%.

76 crore worth of equity shares are being offered for sale by Mr. Khubilal Jugraj Rathod, 57 crore worth of equity shares are being offered for sale by Mr. Vimalchand Jugraj Rathod (the “Promoter Selling Shareholder”), and 38 crore worth of equity shares are being offered for sale by Mrs. Nirmala Khubilal Rathod, 38 crore worth of equity shares are being offered for sale by Mrs. Manjula Vimalchand

SAT denies interim stay on SEBI order against Zee’s Chandra and Goenka

Viditha Ganji — Mon, 10 Jul 2023 08:24:45 +0000

Mumbai: The Securities Appellate Tribunal (SAT) has rejected an appeal from Subhash Chandra, Chairman of Zee Group, and Punit Goenka, CEO of Zee Entertainment, seeking an interim stay on the market regulator SEBI’s order that prohibits them from holding board positions in public listed companies for one year. It has been reported that Goenka and Chandra will be submitting a response to SEBI within two weeks regarding the interim order. The decision comes after SEBI issued an ex-parte interim order on June 12, restraining Chandra and Goenka from holding any directorship or key managerial positions in listed entities due to alleged fund diversion.

During the arguments, SEBI’s counsel Darius Khambata stated in late June that the material gathered by the market regulator over the past four months indicated possible fund diversion and ongoing investigations. Khambata emphasized that SEBI’s actions were based on evidence. On the other hand, senior advocate Janak Dwarkadas, representing Goenka, argued that Sebi’s interim order infringed upon their fundamental rights to be employed by removing two key individuals from the company. Dwarkadas further highlighted that while SEBI had issued the interim order against them, no direction had been issued against Yes Bank for appropriating the Rs 200 crore fixed deposit without ZEEL’s (Zee Entertainment Enterprises Ltd) approval. He also argued that investigations had not found any active irregularity or evidence of bogus transactions involving the promoters.

The ban imposed by SEBI on Goenka has raised concerns about potential delays in the proposed merger between Zee and Sony Group’s Indian unit. The merger, announced in 2021, aims to create a $10 billion TV enterprise, with Goenka set to become the managing director and CEO of the merged entity. However, regulatory approvals for the merger are still pending. Sony Pictures Entertainment expressed seriousness regarding SEBI’s interim order and stated that it would monitor any developments that might impact the deal. “We take very seriously the SEBI interim order and will continue to monitor developments that may affect the deal,” Sony’s statement said.

The rejection of the appeal by SAT and the continuation of SEBI’s ban have sparked concerns among industry observers about potential delays or complications in the Sony deal, adding further uncertainty to the ongoing merger process.

IDFC First Bank’s board of directors granted approval for the merger of IDFC Limited and IDFC First Bank

Avinash Ram — Mon, 03 Jul 2023 16:50:23 +0000

Mumbai, July 3rd, 2023 The Scheme of Amalgamation of IDFC Limited with IDFC First Bank has been accepted by the Board of Directors of IDFC First Bank Limited (“IDFC First Bank” or “the Bank”) at its meeting held today, July 03, 2023. The share exchange ratio for the combination of IDFC Limited and IDFC First Bank shall be 155 equity shares of IDFC First Bank with a face value of 10 cents each that are completely paid-up for every 100 equity shares of IDFC Limited with a face value of 10 cents each that are fully paid-up.

According to calculations based on audited financials as of March 31, 2023, the proposed merger would result in a 4.9% rise in the standalone book value per share of the Bank.

Rationale: The merger will simplify the corporate structures of IDFC FHCL, IDFC Limited, and IDFC First Bank by combining them into a single organisation. It will also make the aforementioned firms’ regulatory compliance procedures easier to manage.
As with other significant private sector banks, the merger will contribute to the establishment of a company with diversified institutional and public shareholders and no promoter holding.

The Scheme is dependent upon receiving the necessary approvals from the Reserve Bank of India (“RBI”), Securities and Exchange Board of India (SEBI), Competition Commission of India, National Company Law Tribunal, BSE Limited, and National Stock Exchange of India Limited (collectively, the “Stock Exchanges”), as well as other statutory and regulatory authorities, and the respective shareholders, in accordance with the relevant laws.

SEBI board to revise TER disclosure rules for mutual funds and FPIs

Avinash Ram — Wed, 28 Jun 2023 18:00:26 +0000

Today, the Securities and Exchange Board of India (SEBI) held its board meeting to discuss a number of important issues, which is a significant development for the Indian financial industry. The revision of rules governing the total expense ratio (TER) for mutual funds (MFs) and disclosures for foreign portfolio investors (FPIs) was one of the main items on the agenda, according to sources close to CNBC-TV18.

Total expenditure ratio, or TER for short, is a term used to describe the overall expenses incurred by mutual funds when administering and running a mutual fund scheme. It includes a variety of costs, such as administrative fees, fund administration costs, and other operational expenditures.

In the past, SEBI has published a consultation document outlining ideas for rationalising TER in mutual funds. In contrast to the scheme level, the report recommended that TER be determined at the asset management company (AMC) level. This strategy tries to present a more comprehensive picture of the costs spent by mutual funds.

The consultation document also made the suggestion that TER could include further elements such advisory fees, the goods and services tax (GST) on investments, and securities transaction tax (STT). It is possible to have a more thorough knowledge of the expenses connected with mutual funds by considering these components in the TER computation.

The disclosure requirements for foreign portfolio investors who are considered to be “high-risk” were another key recommendation in SEBI’s consultation paper. The report states that FPIs would be categorised as “high-risk” FPIs if they held more than 50% of a group or invested more than Rs 25,000 crore in the Indian equities market. It is anticipated that the restrictions will be tightened in this instance. The SEBI board was scheduled to talk about the shortened deadline for listing shares after the initial public offering’s (IPO) closure in addition to the aforementioned issues. The listing window currently extends six days after the IPO closes. There were hints, though, that SEBI would think about shortening it to three days.

The timescale for listing shares after an IPO might be shortened if it is put into effect, which would speed up the listing process, enabling businesses to access funds more rapidly, and possibly increase investor interest. Market participants, government officials, and investors are all anticipated to closely monitor SEBI’s judgement on these issues. The conclusion of the board meeting will offer insightful information on the future course of the Indian financial sector and its regulatory framework.

SEBI invites applications for 25 officials in legal department; Here are the qualification & recruitment details

Viditha Ganji — Fri, 23 Jun 2023 11:00:56 +0000

The Securities and Exchange Board of India (Sebi) has announced a recruitment drive for 25 vacancies in its legal department, inviting applications for the post of Office Grade A (Assistant Manager). This presents a promising career opportunity for candidates with a bachelor’s degree in law from a recognized university or institute. The application process is open until July 9, and online examinations for the selection process will be conducted during August-September.

As per the eligibility criteria outlined in the SEBI Grade A Notification 2023, candidates should not exceed 30 years of age as of May 31, 2023, which means they must have been born on or after June 01, 1993. Interested candidates who meet the requirements can apply online through the official Sebi website.

The selection process consists of three stages: Phase I involves an online screening examination with two papers, each carrying 100 marks; Phase II is an online examination with two papers of 100 marks each, and Phase III includes an interview.

Successful candidates will be engaged for a period of two years. The selected applicants will receive a competitive pay scale of ₹44,500-2,500(4)-54,500-2,850(7)-74,450-EB-2,850(4)-85,850-3,300(1)-89,150 (17 years).

It’s important to note that Sebi has issued a public notice cautioning candidates about unscrupulous individuals who may deceive them with false promises of securing jobs in the regulator. Aspiring candidates are advised to rely solely on the official application process to ensure a legitimate and transparent selection.

Sebi, formed by the Indian government in 1988, gained statutory powers after the passage of the Sebi Act in 1992 following the Harshad Mehta scam that impacted the Indian markets. As the regulatory body for capital markets, Sebi oversees stock exchanges, securities markets, and various market intermediaries such as brokers, merchant bankers, registrars, portfolio managers, investment advisers, foreign portfolio investors, credit rating agencies, mutual funds, and venture capital funds.

In addition to its regulatory functions, Sebi is mandated to combat fraudulent and unfair trade practices, insider trading, and other manipulative activities. The organization plays a crucial role in ensuring the integrity and transparency of India’s financial markets, promoting investor confidence, and safeguarding the interests of market participants.

This recruitment drive by Sebi presents a significant opportunity for legal professionals interested in contributing to the dynamic field of capital markets regulation. The selected candidates will have the chance to make a meaningful impact on the financial ecosystem of the country and help shape the future of the securities market in India.

SAT to next hear SEBI’s plea against Punit Goenka on June 26

Adesh Dixit — Mon, 19 Jun 2023 12:09:56 +0000

The Securities Appellate Tribunal (SAT) will continue to hear on the Punit Goenka vs SEBI matter on June 26.

SAT bench led by Justice Tarun Agrawala on June 16 in an oral order posted that the final decision on the matter will be taken on Monday, June 19. This comes after the market regulator barred Goenka who serves as the Managing Director and Chief Executive of Zee Entertainment and Essel Group patriarch Subash Chandra to hold any key managerial positions in the listed companies on June 12.

SEBI passed the order on the grounds that both were part of the misappropriation of funds and failed to keep the investors the same.

Janak Dwarakadas, senior counsel representing Punit Goenka in the case termed the SEBI order as “Sham” in the previous hearing and highlighted the absence of a show cause notice and violation of natural justice.

SEBI in an 197 page reply to SAT on June 17 has explained the background and need for an urgent action against Zee Entertainment.

SEBI’s statement read, “We have a situation before us where the chairman emeritus and the MD and CEO of this large listed company are involved in a myriad of different schemes and transactions through which vast amounts of public money belonging to listed companies are diverted to private entities owned and controlled by these persons. The appellant’s conduct is telling in this regard. Not only have there been violations but also the issuance of multiple false disclosures and submission of statements to cover up such wrongdoings.”

Here’s why SEBI fined 15 Individuals with a fine of Rs 87 lakh

Sidharth Badlani — Fri, 16 Jun 2023 17:09:24 +0000

SEBI has fined 15 individuals with Rs 87 lakh in violations of falsely inducing investors to trade in the scrip of Kapil Raj Finance. SEBI basically invested the trades in the scrips of Kapil Raj Finance conducted by certain entities during the period of January to April 2018.

SEBI’s adjudicating officer G Ramar said, “I note that they (individuals) engaged in circular trading without changing beneficial ownership, contributing to nearly 80 percent of circular trading volume, and thereby creating 22.2 percent of trading volume, which was non-genuine and artificial, which created a misleading appearance of trading”.

Why the Fine?

SEBI stated that by such circular trading, these entities generated artificial volumes of trade of the scrips of Kapil Raj Finance. This induced investors to engage in buying shares of Kapil Raj Finance.

Circular Trading is illegal in India. SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 observes circular trading as a fraudulent or unfair trade practice. To protect investor interests SEBI actively monitors and punishes instances of circular trading.

Who Are These Entities?

Nikhil Kiritbhai Panchal, Naileshkumar Ganeshbhai Prajapati, Jay Kamleshbhai Bhavsar, Krunal Bhupendrabhai Makwana, Nilesh Kishanbhai Pandya and Chandakant Sevantilal Thakkar, Vyomesh Patel, Yogendra Bhupendra Vekaria, Vipul Pushpavadan Shah, and Vinay Madhukar Chavan have each been slapped with a fine of Rs 5 lakh while SEBI has also imposed fines of ₹8 lakh each on Divyaben Hiteshbhai Gangani and Pardhi Dhirubhai Khanabhai and ₹7 lakh each on Bhavin Natwarlal Panchal, Deepak Parsharam Salvi, and Ravikumar Vinodbhai Parmar.

SEBI’s regulations on execution-only platforms and their impact on investors

Viditha Ganji — Thu, 15 Jun 2023 06:37:05 +0000

In a significant move aimed at safeguarding investors’ interests, the Securities & Exchange Board of India (SEBI) has introduced a regulatory framework for execution-only platforms (EOPs) in mutual fund investing. The new regulations mandate registration for EOPs and prohibit them from providing regular plans to investors.

SEBI defines EOPs as digital or online platforms facilitating transactions, such as subscription, redemption, and switch transactions, exclusively in direct plans of mutual fund schemes. This move is expected to have an impact on players like private wealth platforms, as they will be unable to offer regular mutual fund plans.

The regulatory framework outlines two categories for EOP registration: EOP 1 and EOP 2. EOP 1 entities must register with the Association of Mutual Funds in India (AMFI) and act as agents of asset management companies (AMCs). These platforms will integrate their systems with AMCs and/or Registrar and Transfer Agents (RTAs) to facilitate mutual fund transactions. On the other hand, EOP 2 entities need to be registered as stockbrokers with SEBI and can operate solely through platforms provided by stock exchanges.

An important provision for EOPs is the allowance to sell other products apart from mutual funds, provided adequate disclosure is given to clients. This offers a revenue model for these companies, unlike the previous restrictions on cross-selling products.

Concerns have been raised regarding potential increased costs for investors due to the new regulations. However, SEBI specifies that EOPs registered with AMFI can charge a flat transaction fee, borne by AMCs within the upper limit set by AMFI. Onboarding fees, if applicable, will be the responsibility of the AMCs. Broker-based EOPs, on the other hand, can levy a flat transaction fee within the limit set by stock exchanges, which will be borne by the investors. In this case, onboarding fees will be borne by the AMCs and/or investors.

Industry experts and platforms like Kuvera assert that direct plans will not become more expensive for investors after the implementation of the norms. Platforms like Kuvera utilize existing transaction processing entities, which already charge a transaction fee to AMCs. EOP 1 entities are expected to create parallel infrastructure to share in the existing AMC expenses, while EOP 2 platforms can continue offering free services using exchange infrastructure.

The choice between EOP 1 and EOP 2 registration depends on whether a platform intends to charge its clients for services. While EOP 2 offers flexibility in charging clients, establishing a broking setup can be a challenge for entities not already equipped. The exclusion of regular mutual plans by EOPs is likely to impact players in the private wealth sector.

Ambiguities exist in the circular, particularly regarding onboarding requirements and transaction fee limits, which are expected to be clarified by AMFI in due course. EOP 1 platforms will undergo significant operational migration as they must directly engage with AMCs or RTAs, potentially creating complexities for existing platforms reliant on BSE or NSE infrastructure for transactions.

As the regulatory framework takes effect, investors and industry players will closely monitor the implementation and impact of SEBI’s regulations on execution-only platforms in the mutual fund industry.

SEBI reduces IPO listing timeframe from 6 days to 3 days

Avinash Ram — Sat, 20 May 2023 14:31:32 +0000

The initial public offers (IPOs) process would take three days instead of the current six days, according to a proposal by SEBI, India’s financial markets regulator. Investors and issuers should benefit from the decision. The plan, which was the result of in-depth testing and simulations involving stakeholders including sponsor banks, depositories, and registrars, has been put out for public comment until 3 June by SEBI.

The authority on capital markets, SEBI, suggested on Tuesday to shorten the period of time required for the listing of shares on stock exchanges following the completion of initial public offers (IPOs) from six days to three. Both issuers and investors would benefit from the proposed shortened timescales for the listing and trading of shares.

According to SEBI’sconsultation document, “Issuers will have quicker access to the capital raised, improving the ease of doing business, and investors will have the opportunity to have early credit and liquidity of their investment.”

In November 2018, the markets authority established the Unified Payment Interface (UPI) as an additional payment method with Application Supported by Blocked Amount (ASBA) for retail investors and specified the deadlines for listing within six days after issue closing (T+6). The issue will be resolved on day “T” of the week.

Over the last several years, SEBI has made sure that a number of systemic improvements have been made across all of the major players in the IPO ecosystem. These improvements will make it possible to shorten the listing timeframes from T+6 to T+3 by streamlining the processes involved in processing public issues.

The time period from the date of issue closing to the date of listing of shares through public offerings would be reduced from the current six days (T+6) to three days (T+3), as indicated by SEBI in its consultation paper.

SEBI, the Securities and Exchange Board of India, has extended the deadline for public comments on the plan to June 3.

This comes after thorough back-testing and simulations by all stakeholders, including stock exchanges, sponsor banks, NPCI, depositories, and registrars, with regard to several essential actions involved in the process of a public offering, were performed by SEBI.

More than 19 lakh PACL investors have recovered their investments: SEBI

Avinash Ram — Mon, 08 May 2023 13:00:38 +0000

A panel of experts led by retired judge RM Lodha had initiated the tiered repayment process for investors, who had invested in PACL.

According to the markets regulator Sebi, more than 19 lakh PACL investors with claims of up to Rs 17,000 have got refunds totaling Rs 920 million.

The regulator discovered that PACL Ltd, which had gathered money from the public under the pretence of running real estate and agricultural enterprises, had amassed more than Rs 60,000 crore through shady collective investment schemes (CISs) during an 18-year period.

Refunding investors who had staked money in PACL had been started in stages by a commission led by retired Justice RM Lodha.

“As of today, the committee has successfully effected refunds in respect of a total of 19,61,690 eligible applications with outstanding (principal) amounts ranging from Rs 17,000 to Rs 919.91 crore,” according to a statement posted on the Sebi website.

In order to restore the money to investors whose outstanding (principal) amount with PACL was more than Rs 15,000 and up to Rs 17,000, the committee had requested authentic PACL certificates from them in February.

The money would be returned after the original certificates were verified.

The period from February 27, 2023, to March 20, 2023, was reserved for the acceptance of original certificates.

After recognising the difficulty the investors had in producing authentic certificates, the committee agreed to repay the money without insisting on original certificates.

As a result, Rs 85.68 crore was returned to 1.14 lakh applicants.

Previously, a total of 3,747 applicants with claims of up to Rs 15,000 were paid a total of Rs 2.45 crore.

The Securities and Exchange Board of India (Sebi) ordered the seizure of all assets of PACL and its nine promoters and directors in December 2015 for their inability to refund money owed to investors.

In an order dated August 22, 2014, Sebi ordered PACL, as well as its promoters and directors, to refund the money.

The defaulters were ordered to stop the schemes and refund money to investors within three months of the order’s date.

SEBI fines Angel Broking Rs. 10 Lakh for violating operational guidelines & other regulations

Sakshi Vats — Mon, 01 May 2023 12:55:34 +0000

For violating a number of operational guidelines and circulars in its role as a stock broker and a depository participant, the Securities and Exchange Board of India (SEBI) fined Angel Broking Limited Rs 10 lakh.

While the fine may not be significant for a listed broker like Angel Broking, the attention given to the broking firm’s operational weaknesses does raise larger questions about broking firms and their operational procedures.

Based on the findings of a thorough joint examination that examined the activities of exchanges and depositories between December 7, 2020, and January 28, 2021, the market regulator filed actions against the stock broker. In September 2022, a showcause letter was sent to Angel Broking.

According to SEBI, Angel Broking exploited the money raised by pledging the securities of its clients for purposes other than those related to their obligations to those clients. Angel Broking has pledged securities of clients who had a credit balance in their ledger, and the misutilization was Rs. 32.97 crore, according to the adjudicating officer Amit Kapoor.

During the inspection period, SEBI noted that Angel Broking did not actually settle the funds of inactive clients. The market regulator noted 300 of these cases, with a non-settled total of Rs. 43.96 lakh.

Additionally, SEBI noted that Angel Broking did not actually settle the funds of customers who had not traded in the previous three months. The 1081 incidents were discovered by the market regulator, and the unpaid sum was Rs 16.65 lakh.

After January 16, 2020, it was found that Angel Broking kept the value of funds and securities to the extent of the value of turnover conducted on the day of settlement in the cash market segment (85 out of 200 occurrences were found to be not settled, with a total amount of Rs 10.26 crore being declared unsettled).

Angel Broking was found by SEBI to have neglected to perform regular reconciliation between DP accounts and back office data. With an absolute value of Rs. 1226.73 crore, there was a total quantity differential of 44.72 lakh.

Despite the non-recovery of debit balances, Angel Broking had provided exposure to the client beyond T+2+5 days in the amount of Rs 2.10 crore.

The broker informed the inspection team that MTM from the derivative segment position was taken into account when giving exposure. Angel Broking, however, could not offer any supporting documentation for its claims.

According to SEBI, there were 35,179 instances of PAN mismatch between TM back office records and UCC (unique client code). In 2,227 cases, it was found that the client email addresses in Angel Broking’s database did not correspond to the information in the exchange database. 2,336 instances of client phone numbers in Angel Broking’s database not matching the information in the exchange database were noted.

Additionally, for the month of October 2020 Angel Broking reported incorrect ledger balances for 30,602 clients to the exchange, with a net difference of Rs. 340.81 crore.

Here’s why SEBI filed for a 6 month extension appeal for the Adani Group report in the Supreme Court

Sakshi Vats — Sat, 29 Apr 2023 14:36:26 +0000

In order to finish its investigation into Hindenburg claims of “brazen stock manipulation” and a “accounting fraud scheme” by the Adani group, SEBI has submitted a request to the Supreme Court asking for a six-month extension.

SEBI has filed an application in the Supreme Court seeking a six-month extension to complete its probe into Hindenburg allegations of “brazen stock manipulation” and an “accounting fraud scheme” by the Adani group #hindenburgreport #SupremeCourtofIndia pic.twitter.com/CzD4V25lpm

— Bar and Bench (@barandbench) April 29, 2023

In an application to the Supreme Court, the Securities and Exchange Board of India is requesting an additional six months to complete its investigation into the Adani Group-Hindenburg Research matter.

In its plea, SEBI noted that more time would be needed to reach confirmed conclusions and wrap up the inquiry.

The market regulator has stated that it typically takes at least 15 months to complete the investigation of these transactions in order to determine potential violations connected to financial misrepresentation and suspicious transactions that have been claimed in the Hindenburg report. However, SEBI asserted that it is making every effort to resolve the matter within six months.

SEBI has stated in the application that “as is the case in most investigations, every layer of information received often leads to further layers of information that are required, sought, obtained and analysed and this process is particularly time consuming where there is a complex web of transactions”.

It has been stated that the report’s alleged suspicious transactions are complicated and contain numerous sub-transactions, necessitating a thorough investigation that includes gathering data and information from a variety of sources, in-depth analysis, and confirmation of the companies’ submissions.

The investigation would also need getting bank statements from numerous local and international banks, which would take time and be difficult because the bank statements would also be for transactions that had been completed more than ten years earlier.

Prior to this, the Supreme Court had set a deadline of May 2 for the submission of the status report after ordering SEBI to “expeditiously conclude” the investigation within two months and release a status report on March 3. In the same order, the court established a six-person expert panel and mandated that it investigate the regulatory issues in the Adani case and submit a sealed report within two months.

According to SEBI, which was asked by the Supreme Court, the Adani group is believed to have misled stock prices and violated minimum public shareholding standards. According to the article, the Supreme Court also mandated that SEBI notify the expert committee of the activities it had taken.

SEBI expected to delay report investigating Adani Group’s fraud and manipulation accusations

Sakshi Vats — Sat, 29 Apr 2023 06:58:24 +0000

As it seeks more time from the Supreme Court, the Securities and Exchange Board of India (SEBI) is expected to delay the status report of its investigation into the accusations of fraud and manipulation made against the troubled Adani group.

According to the publication, which cited two informed sources, SEBI is likely to ask the Supreme Court for an extension of time to finish its investigation into the claims made by Hindenburg Research against the Adani group. The market regulator may inform the court of the status of the case and provide an explanation for why further time is needed.

The Supreme Court set a May 2 deadline for the status report submission after ordering SEBI to “expeditiously conclude” the probe within two months and publish a status report on March 3. In the same order, the court established a six-member expert panel and ordered it to look into the Adani case’s regulatory failure and submit a sealed report within two months.

The Adani group has been accused of misleading stock rates and allegedly violating minimum public shareholding norms, according to SEBI, which was requested by the Supreme Court. The publication claims that the Supreme Court also ordered SEBI to inform the expert committee of the actions it had taken.

It’s been reported that the six-member team, led by retired Supreme Court judge Justice A.M. Sapre, visited the SEBI headquarters earlier this week. The members of the court-appointed committee are O.P. Bhatt, Nandan Nilekani, K.V. Kamath, Justice J.P. Devadhar, and Somasekharan Sundaresan.

According to the newspaper, SEBI has been gathering extensive information over the last two weeks. This relates to transactions between related parties carried out by the 10 public and unlisted companies that make up the power-to-port conglomerate, which has experienced tremendous expansion under the leadership of Prime Minister Narendra Modi.

Additionally, SEBI has requested information on shareholding patterns, disclosures, and other details to support the group’s reported figures and assertions. Two distinct teams are investigating the subject to look at market movements before and after the report’s publication as well as potential manipulation in Adani Group shares, according to a report.

SEBI asks AMCs to file final offer documents digitally as part of “go green” initiative

Sakshi Vats — Tue, 25 Apr 2023 19:47:43 +0000

Asset management companies (AMCs) are no longer required to file physical copies of final offer documents (final SID and KIM) with the securities regulator Securities and Exchange Board of India (SEBI) as part of the the company’s “go green” initiative.

The new framework will be into effect starting on May 1, 2023, according to a statement from the markets regulator.

According to the market regulator, all new fund offerings (NFOs) would be available for subscription for a minimum of three working days in order to safeguard the interests of investors in the securities market.

According to the SEBI circular, AMCs will only need to put in all final offer documents, including the Scheme Information Document (SID) and the Key Information Memorandum (KIM), by emailing them to a specific e-mail ID. There will be no need to submit physical copies of these documents to the market regulator.

The SEBI added that at least two working days before the start of the scheme, the final SID and KIM must be submitted in digital form.

According to the current regulations, the market regulator requires the submission of a soft copy of the final SIDs together with a printed/final copy seven working days before the start of the scheme.

Punit Goenka, MD and CEO of Zee Entertainment Enterprises settles dispute with SEBI

News Desk — Thu, 13 Apr 2023 14:25:10 +0000

Mr. Punit Goenka, the managing director and managing director of Zee Entertainment Enterprises (ZEEL), has settled a dispute involving a possible breach of insider trading regulations by paying the market regulator Securities and Exchange Board of India (SEBI) Rs. 50.7 lakh.

This problem first surfaced in September 2020, when ZEEL announced the introduction of Cinema 2 Home Service, a pay-per-view service called ZEEPLEX.

Zeeplex amid the Covid restrictions was a favorable development for the firm and qualified as undisclosed price-sensitive information (UPSI), according to Sebi’s examination.

UPSI, often referred to as unpublished price-sensitive information, is important information that has not yet been made public but has the potential to have a major impact on the price of a company’s shares or other securities. It is referred to as “price-sensitive” because the information may affect the stock’s price if it were made public, and it is referred to as “unpublished” since it has not yet been made accessible to the broader public.

Examples of UPSI include information on a company’s financial performance, management changes, or announcement of a large partnership or acquisition. Other instances include “changes in management.” It is essential that this information be kept secret until it is made public in order for everyone to have access to the same information and to be able to make informed decisions about buying or selling the company’s shares.

It is illegal to utilize UPSI to obtain an unfair advantage, such as when participating in insider trading, which might have serious consequences. Companies are required to put in place strict measures to prevent the unauthorized disclosure of UPSI and to ensure that any important information is made available to the public in a timely and equitable manner. Additionally, businesses must follow all relevant laws and rules pertaining to the disclosure of UPSI.

IPO for Tamilnad Mercantile Bank begins the next week

Yakita Somani — Tue, 30 Aug 2022 07:44:17 +0000

Tamilnad Mercantile Bank, a private lender, will begin accepting subscriptions for its initial public offering (IPO) next week. The subscription period will begin on September 5 and conclude on September 7 at a price band of Rs 500-525 apiece.

Tamilnad Mercantile Bank, based in Tuticorin, received approval from the Securities Exchange Board of India (SEBI) in June to raise funds through an initial public offering. According to an update with the markets watchdog, the bank, which filed its preliminary IPO papers with SEBI in September 2021, received its observations on May 30 this year. SEBI’s observation implies its approval to launch an IPO.

The IPO is a completely fresh issue of up to 1.58 crore shares with a face value of Rs 10 each, totalling Rs 831.6 crore. Axis Capital, Motilal Oswal, and SBI Capital Markets are among the issue’s lead managers. The issue’s registrar is Link Intime India. Tamilnad Mercantile Bank will be listed alongside City Union Bank, CSB Bank, DCB Bank, Federal Bank, Karur Vysya Bank, Karnataka Bank, RBL Bank, and South Indian Bank.

With a history of nearly 100 years, Tamilnad Mercantile Bank is one of the country’s oldest private sector banks. It provides a wide range of banking and financial services to customers primarily in the Micro, Small, and Medium Enterprises (MSME), agricultural, and retail sectors.

As of June 30, 2021, the bank had 509 branches, with 106 in rural areas, 247 in semi-urban areas, 80 in urban areas, and 76 in metropolitan areas. It has a customer base of approximately 4.93 million people, 70% of whom have been with the bank for more than five years.

Kotak Mahindra Mutual Funds files for Silver ETF and FoF with SEBI

News Desk — Fri, 24 Jun 2022 13:54:33 +0000

Kotak Mahindra Mutual Fund, an Asset management company has filed for two new schemes with the Securities and Exchange Board of India (SEBI) — Silver Exchange-Traded Fund (ETF) and Silver ETF Fund of Fund (FoF).

SEBI in September 2021 had approved an amendment to mutual fund rules. To enable the introduction of silver ETFs in the Indian markets with certain rules in line. Currently, Silver ETFs is one of the most trending investment asset classes to be introduced by the market regulator. The silver fund as a category has delivered an average return of -11.52% on a three-month period.

The primary objective of the schemes would be to generate returns that fall in line. With the performance of physical silver in domestic prices, subject to tracking error. The ETF Fund of Fund would produce returns by investing in units of Kotak Silver ETF. The Benchmark of the scheme would be the price of silver based. On the London Bullion Market Association (LBMA) daily spot-fixing price.

The minimum amount for application in the new fund offer (NFO) of the scheme would be ₹5,000, and in the multiples of Re. 1 from there on after

Up until now, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund and Nippon India Mutual Fund have launched silver ETFs. Further, each of these fund houses has a silver fund of fund as well. Presently, ICICI Prudential Silver ETF is the biggest scheme in the category with assets of around ₹472 crore, as of the information available on 31st May 2022

According to Market experts, silver is more a prudent allocation as opposed to gold. Which is more a strategic allocation for portfolio diversification. Further, 65-70% of the usage of silver is in industrial realm.

Tracking error of equity ETFs/index funds not to exceed 2%: SEBI

News Desk — Mon, 23 May 2022 17:25:29 +0000

The circular is titled – ‘Development of Passive Funds’ and has considered the recommendations from the Mutual Funds Advisory Committee (MFAC) .

The lack of growing interest for passive investment products that are characterized by transparency, diversification. And lower cost compared to active funds.

The SEBI circular

The tracking error is the annualized standard deviation of the difference in daily returns. Between the underlying equity index and the NAV of the ETF/ Index Fund based on past one-year rolling data. And the circular stars say it should be within 2% levels.

This metric measures how well the fund generates returns compared to the target index’s returns.

As per the circular, all ETFs/ Index Funds (including debt ETFs/ Index Funds), must disclose the tracking error based on the past one-year available data, on the website of respective AMFI and AMC’s, according to the SEBI circular.

Precautionary measures to be taken for funds in existence for a period of less than one year, the annualized standard deviation shall be calculated based on available data only.

In addition to the tracking error, passive funds have to disclose ‘tracking difference’ on a month timely basis.

The Tracking difference has to be disclosed for tenures 1 year, 3 year, 5 year, 10 year and. Since the date of allotment of units in mutual funds.

Tracking difference is set for debt ETFs/Index funds to 1.25 %. The SEBI circular states “For Debt ETFs/ Index Funds the annualized tracking difference. Averaged over one-year period shall not exceed 1.25%,” .

Any kind of deviation from these specified limits must be taken to the notice of trustees. Of the respective firms with corrective actions taken by the AMC, stated in the circular.

Whatever the scenario SEBI forms in such a meeting it won’t attract active investments. Because the if Mutual funds fail to deliver their shown promises on the website. Then the same cycle of lack of investment will go on.

Supreme Court dismisses SEBI’s appeal against orders issued by SAT on PNB Housing Finance’s fundraise plan

Cheryll Jain — Wed, 20 Oct 2021 10:59:08 +0000

The Supreme Court on Wednesday, October 20, dismissed an appeal filed by the Securities and Exchange Board of India (SEBI) against an order passed by the Securities Appellate Tribunal (SAT) in a matter related to PNB Housing Finance Ltd.’s planned equity capital fundraise of Rs. 4,000 crores.

After being notified by the counsel of PNB Housing Finance Ltd. that the company has reconsidered the matter at hand and reached the decision to not proceed with the issue by filing an application before the Securities Appellate Tribunal to withdraw its appeal, the bench headed by Justice L Nageswara Rao rejected SEBI’s appeal against SAT as “infructuous.”

“In view of the subsequent developments, where the respondent does not want to pursue the matter, the appeal is dismissed as infructuous,” stated the apex court bench which also comprised former Bombay High Court judge B.R Gavai.

SEBI’s appeal had been against the interim order given by the SAT earlier this year in June, where the statutory body restricted PNB Housing Finance Ltd. from revealing the results of the voting process organised amongst its shareholders in regards to the company’s proposed fundraising plans.

Promoted by the Punjab National Bank, PNB Housing Finance had first proposed its equity raise plan on May 31, this year. As per the plan, the company was to allot preference shares and warrants to a few investors directed by US-based private equity and alternative asset management firm Carlyle Group.

The subsequent voting was, therefore, a part of a special resolution to get the green light on the plan to raise Rs. 4,000 crores by the company’s current shareholders. However, the plans were disrupted when a proxy advisory firm alleged that the issuance of preference shares at much lower rates to new investors was against the interests of the current promoters and minority shareholders of the company.

The SEBI then interposed and demanded the housing finance company to hold onto its plans until a valuation of its shares was done by an independent authorised valuer. However, the company defended its decision to price its preferred shares at Rs. 390 apiece, contending that the price was in line with the regulations issued by the SEBI.

Policybazaar owner PB Fintech gets SEBI’s approval for ₹6,017 crores IPO

Cheryll Jain — Tue, 19 Oct 2021 10:42:07 +0000

PB Fintech, India’s largest online insurance platform, announced on Tuesday, October 19 that it has received the approval of the Securities and Exchange Board of India to float an initial public offering (IPO) in order to raise Rs. 6,017.50 crores.

PB Fintech, which operates insurance platform Policibazaar and credit tracking and comparison platform Paisabazaar, will offer Rs.3,750 crores worth of fresh equity shares and an Offer for Sale (OFS) worth Rs.2,267 crores by existing selling shareholders as part of the planned IPO.

The draft red herring prospectus filed by PB Fintech disclosed that existing shareholder SVF Python II will sell shares worth Rs.1,875 crores while Yashish Dahiya will sell part of his shares worth Rs. 250 crore as part of the OFS. it also hinted that other selling shareholders will also give up their shares as part of the IPO.

As per the DRHP submitted before the board earlier this year in August, the company is also in talks to raise an additional Rs.750 crores through private placement of equity shares before the planned IPO.

Money raised from the fresh issue of equity shares will be utilised in expanding the company’s visibility and awareness among consumers in the market. PB Fintech is also seeking new opportunities to further develop its consumer base and secure its presence in the offline market.

Meanwhile, the funds raised from the IPO will aid in funding strategic investments and acquisitions to expand the company’s presence in the overseas market.

PB Fintech’s approved IPO is significant for the listed firm Info Edge that holds close to a 14 per cent stake in PB Fintech. The firm is not diluting any stake through OFS part of the public offering but the IPO will grant a benchmark to the cost of the stake that Info Edge holds in the company.

Ayushmann Khurrana to be the new brand ambassador of CoinDCX as Amitabh Bachchan withdraws

Ayisha Farah — Mon, 18 Oct 2021 08:07:36 +0000

On Monday, CoinDCX declared that it has selected actor Ayushmann Khurrana as its new brand ambassador. The announcement arrives after actor Amitabh Bachchan announced he’s halting the advertisement deal with CoinDCX until there is certainty on the legitimacy of cryptocurrency in India.

Currently, the Indian government has not formally acknowledged cryptocurrency as a financial commodity. Therefore it cannot be controlled by bodies such as the Securities and Exchange Board of India (SEBI).

That is not preventing crypto exchanges or investors who proceed to find profit in crypto investments. However, players such as CoinDCX are seeking to transform the fence-sitters as well. Therefore, Khurrana will highlight CoinDCX’s ‘Future Yahi Hai’ (This is the future) campaign to discuss critical matters encompassing crypto investments, including whether crypto is ‘Simple and Safe’ to invest and myths associated with cryptocurrency.

The kickoff ad will be released during the festive season and will feature the actor taking a witty yet educational approach to crypto. The ad campaign will be displayed across television, print and social media platforms.

Ramalingam Subramanian, head of the brand, marketing and communications, CoinDCX, says that Ayushmann has always come across as a warm and sincere personality who has a skill for connecting with younger and older generations with his excellent work.

“Our focus during this campaign will be to dispel the various myths surrounding crypto-based investing and breaking down the simple steps needed to enable anyone to start their crypto investment journey,” he adds.

Trading in cryptocurrency is the act of speculating on cryptocurrency price changes via a trading account or buying and selling the underlying coins via an exchange. That is where most players in India, such as CoinDCX, WazirX, CoinSwitch Kuber and Zebpay, are attempting to get as many users on their platforms. Their target group covers digital and mobile-first users between 25 and 40 years of age living in tier I and II cities.

Most platforms’ marketing arsenal includes ads on video streaming platforms, social media, television, and sponsorship deals for significant events and high reach properties such as Indian Premier League (IPL) and Big Boss.

As far as promotion and marketing activities go, no particular guidelines for cryptocurrency platforms have been put in place by ad industry watchdog Advertising Standards Council of India (ASCI) despite its extensive presence across media platforms.