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SEBI Proposed Revision of Norms in Self Regulatory Organizations

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Markets regulator Sebi has proposed amendments to norms governing Self Regulatory Organisations, including recognising such entities on a nomination basis. Coming out with a consultation paper, an SRO would be defined as an organisation of intermediaries or an entity promoted by a stock exchange, recognised by the board.

A Self Regulatory Organisation (SRO) is considered as the first level regulator. Sebi has sought comments from the public on the consultation paper latest by April 21. A committee will be formed that will comprise of external experts headed preferably by a retired judge of a HC or Supreme Court.

Sebi on a settlement spree
Himachal Futuristic Communications has settled a probe with Sebi in a matter related to alleged manipulation in the issuance of global depository receipts (GDR) after paying Rs 1.14 cr as settlement charge. The regulator had initiated adjudication proceedings against the firm in June 2018.

In another case, Citibank N.A. has settled a case with markets regulator Sebi regarding the bank’s alleged failure to adequately supervise an employee who carried out an unregistered portfolio investment scheme. The case has been settled after payment of Rs 4.5 cr towards settlement charges.

Also, Genus Prime Infra has settled with Sebi, regarding alleged disclosure lapses by paying nearly Rs 17 lakh as settlement charges. While examining the letter of offer filed by two promoter group entities to acquire 26% share capital in Genus Prime, the regulator had observed certain non-compliances regarding disclosure norms and issued notice in May, 2017.

Citibank N.A. has settled a case with Sebi regarding the bank’s alleged failure to adequately supervise an employee who carried out an unregistered portfolio investment scheme. The case has been settled after payment of Rs 4.5 crore.

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