Tag: SEBI

Categories
Corporate

SEBI starts ₹18 cr recovery against finfluencer ‘Baap of Charts’

The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings worth nearly ₹18 crore against stock market influencer Mohammad Nasiruddin Ansari, widely known as ‘Baap of Charts’, along with Rahul Rao Padamati and Golden Syndicate Ventures Pvt. Ltd. The move comes after the entities failed to comply with earlier regulatory orders and did not pay penalties imposed on them.

SEBI had earlier found that Ansari and his associates were offering investment advice and stock trading recommendations without mandatory registration. Through social media platforms, paid courses, and online groups, they allegedly promised high returns to investors, which is a violation of securities market regulations meant to protect retail participants.

According to the regulator, the recovery amount includes penalties, interest, and additional charges arising from earlier enforcement orders. As part of the recovery process, SEBI has directed banks and depositories to freeze accounts and assets linked to the defaulters. The regulator has also restricted them from selling or transferring any movable or immovable property until the full amount is recovered.

SEBI noted that the funds currently available in the bank accounts of the individuals and the company may not be sufficient to cover the total dues. Therefore, it has invoked recovery mechanisms similar to those used for tax arrears, including attachment of assets and possible sale if payments are not made.

This action is part of SEBI’s intensifying crackdown on unregulated finfluencers, who have gained popularity on social media by offering market tips without accountability or oversight. The regulator has repeatedly warned investors to be cautious of online personalities who are not registered investment advisers or research analysts.

Over the past year, SEBI has taken several steps to curb misleading financial content, including issuing advisories, imposing penalties, and tightening disclosure norms for social media influencers promoting financial products.

Market experts say such enforcement actions send a strong signal that regulatory compliance is non-negotiable, regardless of an individual’s online following or popularity. SEBI has reiterated that only registered entities are permitted to provide investment advice and that violations will attract strict action to safeguard investor interests.

The recovery proceedings underline SEBI’s message that financial influencers operating outside the regulatory framework will face serious consequences, especially when investor money and trust are at stake.

Also Read: Meesho shares soar 13%, market cap crosses ₹85,000 cr

Categories
Beyond

SEBI to review key mutual fund, broker and IPO rules

The Securities and Exchange Board of India (SEBI) is set to take up a wide range of regulatory proposals at its upcoming board meeting, with a focus on mutual funds, stock brokers, IPO regulations and credit rating agencies. The discussions are expected to influence how key segments of India’s capital markets operate in the coming months.

One of the major areas under review is the mutual fund industry. SEBI is examining changes to existing norms to improve transparency in costs charged to investors. This includes a closer look at commissions and brokerage fees paid by mutual fund houses to distributors, as well as possible refinements to the total expense ratio framework. The regulator’s aim is to ensure that investors have a clearer understanding of charges and that costs remain reasonable across schemes.

The board will also deliberate on proposals related to stock brokers. These are expected to focus on rationalising compliance requirements and reducing regulatory burden, particularly for smaller intermediaries, while maintaining adequate safeguards for investors. Simplified norms could help improve operational efficiency without diluting market integrity.

Another key item on the agenda is a review of IPO lock-in rules. SEBI may consider the use of technology to streamline lock-in monitoring, especially in cases where shares are pledged. Any changes in this area could make the public issue process smoother for companies while ensuring that lock-in conditions are enforced more efficiently.

The role and mandate of credit rating agencies (CRAs) will also come under discussion. SEBI is looking at ways to strengthen the credit rating ecosystem by clarifying responsibilities and improving oversight, with the objective of enhancing the quality and reliability of ratings in the debt market.

In addition, the board may review measures related to dematerialisation of older share certificates, updates to conflict-of-interest norms for SEBI officials, and possible incentives for public debt issuances. Collectively, these proposals reflect SEBI’s ongoing effort to balance ease of doing business with robust investor protection and market transparency.

Also Read: SBI bets big on new YONO app

Categories
Corporate

SEBI approves 5 new IPOs, 2 firms withdraw

The Securities and Exchange Board of India (SEBI) has approved the initial public offerings (IPOs) of five companies, paving the way for them to raise capital from the market. The approved firms include Molbio Diagnostics, LEAP India, Foodlink F&B Holdings (India), Technocraft Ventures, and Eldorado Agritech.

Two other companies, Inox Clean Energy and Sky Alloys & Power, have withdrawn their IPO proposals, citing internal decisions, highlighting that regulatory clearance does not always translate into a public listing.

The approvals allow the cleared companies to launch their share sales within the next year, or up to 18 months for those that filed confidentially. The draft filings for these IPOs were submitted between June and September, with SEBI issuing its observations from late November to early December.

Molbio Diagnostics, a Goa-based diagnostics company backed by investors like Temasek Holdings and Motilal Oswal Private Equity, plans to raise around ₹200 crore through fresh issuance, with existing shareholders selling up to 1.25 crore shares. The company provides point-of-care molecular testing for over 30 diseases via its “Truenat” PCR platform.

LEAP India, promoted by global investment firm KKR, intends to raise roughly ₹2,400 crore—₹400 crore through fresh shares and the rest via an offer-for-sale by promoters. The company operates in supply-chain asset pooling, catering to various logistics and distribution needs.

Foodlink F&B Holdings (India), a Mumbai-based food-services and catering company, is looking to raise ₹160 crore via fresh shares, with additional shares available for sale by existing promoters. The funds will support expansion plans and reduce debt.

Technocraft Ventures, from Uttar Pradesh, offers wastewater treatment and sewage infrastructure solutions, while Eldorado Agritech of Telangana focuses on agricultural inputs like seeds and crop protection products. Both have received regulatory clearance to proceed with their IPOs.

The approvals signal a steady momentum in India’s IPO market across sectors such as healthcare, food services, agriculture, and infrastructure. For investors, these listings provide fresh opportunities, while for companies, they represent a crucial step toward growth and capital raising.

The withdrawals by Inox Clean Energy and Sky Alloys & Power reflect market or strategic considerations, underscoring that IPO clearance is only one stage in a broader listing process.

Also Read: Meesho shares jump 46% on stock market debut

Categories
Leaders

SEBI bans Avadhut Sathe, seizes ₹546 crore illegally

The Securities and Exchange Board of India (SEBI) has taken stringent action against Avadhut Sathe and his trading academy, impounding ₹546 crore and barring them from participating in the securities market for offering unregistered investment advisory services. The regulator said that the Avadhut Sathe Trading Academy (ASTAPL), which marketed itself as an educational platform, provided subscribers with stock recommendations, stop-loss levels, and portfolio guidance, services that require proper SEBI registration.

The SEBI order covers the period between July 2017 and October 2025. According to the regulator, the academy misused its platform to give actionable market advice under the guise of education. Evidence collected included video recordings, chat logs, and online interactions showing that participants executed trades based on the advice provided. SEBI determined that the gains earned by Sathe and the academy through these activities, which reportedly amount to over ₹600 crore in fees, were unlawful and constituted illegal profits.

As part of its directive, SEBI has barred Sathe and his academy from buying, selling, or dealing in securities. They are also prohibited from offering any advisory or research services, including those disguised as educational content. The use of live market data, showcasing returns, or advertising participant profits to attract subscribers is strictly forbidden.

This marks one of the largest enforcement actions by SEBI against a “finfluencer”,  an individual leveraging social media or digital platforms to give financial advice. The regulator’s move serves as a stern warning to others providing stock-market tips or research guidance without SEBI registration.

SEBI emphasized that the order aims to protect retail investors from misleading promises of quick profits. Investors are advised to be cautious when following trading courses or financial influencers and to verify regulatory credentials before acting on investment advice.

This action reinforces SEBI’s commitment to ensuring transparency and compliance in India’s securities market, particularly in the rapidly growing digital advisory and trading education space.

Also Read: Reliance earns ‘A-‘ rating boost from S&P Global

Categories
1 Minute-Read

SEBI to release LODR review paper soon

The Securities and Exchange Board of India (SEBI) plans to issue a comprehensive consultation paper reviewing its Listing Obligations and Disclosure Requirements (LODR) within the next four to six months.

The initiative seeks to simplify complex regulations, remove redundant provisions, and ease compliance, particularly for new-age firms and small to medium enterprises.

Key proposals under consideration include streamlined disclosure processes, unified filing systems, and customized norms for different types of companies.

The review reflects SEBI’s focus on improving transparency, enhancing efficiency, and fostering a more business-friendly regulatory environment while maintaining investor protection.

Categories
Beyond

SEBI proposes changes to basic demat accounts

The Securities and Exchange Board of India (SEBI) has proposed changes to the framework governing Basic Services Demat Accounts (BSDA), a low-cost demat facility designed for small investors. The draft regulations aim to make account eligibility assessment fairer, more transparent, and easier to manage.

Under the proposed changes, delisted securities, shares removed from stock exchange trading will no longer be considered when calculating BSDA holdings. SEBI noted that delisted shares often lack a market price, making it difficult to assess their real value. Similarly, Zero Coupon Zero Principal (ZCZP) bonds, which are non-transferable and do not provide any principal or interest return, will be excluded from valuation. Including these instruments previously inflated an investor’s account value artificially, potentially disqualifying them from BSDA benefits.

For listed but illiquid securities, SEBI proposes using their last traded price for BSDA eligibility purposes. Promoter individuals holding securities will not be subject to these valuation changes.

Another key recommendation is to replace the current billing-cycle-based reassessment of BSDA eligibility with a uniform quarterly system-driven review, standardizing the process across investors. Additionally, SEBI has suggested allowing investors to provide required consents through authenticated methods beyond registered email IDs, making the process more convenient.

SEBI said these measures aim to simplify account management, improve financial inclusion, and ensure that low-cost demat services benefit genuine small investors. The regulator has invited public comments on the draft proposal until 15 December 2025.

With these changes, SEBI hopes to ensure that BSDA holders are evaluated based on active and real investments, rather than on securities that are non-tradable, illiquid, or have no market value, thereby improving transparency and usability of the system for retail investors.

Also Read: Bitcoin slides 21% in November, sparks concern

Categories
Corporate

SEBI Widens IPO Anchor Investor Quota To 40%

The Securities and Exchange Board of India (SEBI) has amended rules regarding the share-allocation framework for anchor investors in maiden public offerings. This strategy is aimed at broadening the participation of domestic institutional investors such as mutual funds, insurance companies and pension funds.

Under this, Sebi has increased total reservation in the anchor portion to 40 per cent from 33 per cent earlier. This comprises 33 per cent for mutual funds and the remaining 7 per cent for insurers and pension funds.

If the 7 per cent reserved for insurers and pension funds remains unsubscribed, it will be reallocated to mutual funds, the markets regulator said in a notification dated October 31.

SEBI has also the number of anchor investors allowed for IPOs with an anchor portion above Rs 250 crore, by raising the existing limit from 10 to 15 per Rs 250 crore.

This means, a minimum of 5 and a maximum of 15 investors shall be allowed for allocations up to Rs 250 crore. For every additional Rs 250 crore or part thereof, an additional 15 investors are to be permitted, subject to a minimum allotment of Rs 5 crore per investor, according SEBI.

Also, in the discretionary allotment under anchor portion, Category I (up to Rs 10 crore) and Category II (above Rs 10 crore up to Rs 250 crore) have been merged into a single category for allocations up to Rs 250 crore, with a minimum number of anchor allottees as 5 and maximum as 15 (minimum allotment 5 crore per investor).

The framework would broaden the participation of long-term institutional investors in the IPOs. To give these effect, the regulator has amended Issue of Capital and Disclosure Requirements norms, which would come into force from November 30.

Also Read: Orkla India IPO lists at ₹750, 3% Up

Categories
Corporate

SEBI to Revamp Broker Rules by Dec. 2025

The Securities and Exchange Board of India (SEBI) is set to overhaul stock broker regulations that have been in place for over 30 years. The move aims to modernize rules, improve risk management, and strengthen data protection, including updated definitions for algorithmic and proprietary trading. SEBI Chairman Tuhin Kanta Pandey said the changes could be implemented by December 2025.

The decision follows a discussion paper issued in August and comes amid concerns about trading disruptions, such as a recent technical glitch at the Multi-Commodity Exchange (MCX). SEBI is analyzing the incident to prevent future problems and ensure market stability.

The regulator is also addressing investor concerns by allowing the transfer of physical securities bought before FY20. In addition, SEBI resolved a disclosure violation with brokerage Angel One, which will pay ₹34 lakh in settlement.

Pandey stressed that the reforms aim to make India’s markets more robust, transparent, and investor-friendly, keeping regulations in step with modern trading practices.

Also Read: Goyal in New Zealand for FTA Talks