SEBI board may widen UPSI scope, tighten SME rules

The board of the Securities and Exchange Board of India (Sebi), in its  meeting on December 18, is likely to approve a slew of measures, including tighter norms for small and medium enterprises (SME) listing, review of custodian and merchant banker regulations and expansion of the definition of unpublished price sensitive information (UPSI).

Some of the other items on the agenda include a review of public interest director regulations, framework for angel funds in AIFs and performance validation agencies and a few ease of doing business proposals, according to sources in the know. The need to tighten rules for the initial public offering (IPO) of micro companies arises from the increased exuberance seen among investors and manipulations on the part of companies to sail through their IPOs.

Also ReadZerodha CEO Nithin Kamath warns against shortcuts to quick money

The regulator is expected to increase the application size from existing Rs 1 lakh to Rs 2-4 lakh, mandate an operating profit in two out of three years and higher promoter lock-in of five years. Sebi is also expected to set a cooling period of two years for proprietary or partnership firms after they convert to a company.

“With the ways that such small companies are trying to defraud investors and the way that retail participation is overboard, we plan to take this up in the December board meeting,” said a Sebi official. Recently, Sebi passed a first-of-a-kind order against SME company Trafiksol, cancelling its IPO after halting the listing on the BSE’s SME platform in September. The regulator has asked the company to refund the issue proceeds collected from investors, which have been stuck for the past three months as Sebi investigates the matter.

Also ReadSEBI plans online monitoring of stock brokers’ system audit by exchanges

Sources said the proposal on the demerger of clearing corporations may need more time and may not be taken up in the upcoming board meeting. Sebi also plans to broaden the scope of price sensitive information that could affect stock prices to include resignation of auditor, change in key managerial personnel – other than superannuation or end of term, fraud by a listed company, or arrests of its key members, among others.

Further, the review of norms for custodians and merchant bankers is expected to sail through easily as most feedback received from the industry is positive,

 » Read More

Related Articles

How will markets open today? Here are top 7 cues to watch ahead of trading on February 11

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 are implied to open on a higher note on Tuesday. Also, Asian markets opened majorly on a higher note in early trade hours as investors looked past the tariff threats from Donald Trump. Previously, on Monday, the NSE Nifty 50 finished the

Stocks To Watch: Reliance Ind, Grasim Ind, Bata, Titan, ONGC, IHCL, Nykaa, Lupin, Eicher Motors, Ahoka Buildcon

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a higher opening on Tuesday. Here’s a look at the key stocks to watch in trade. Stocks in Focus: Here’s a comprehensive list of stocks to keep in mind before you start your day. From Reliance Industries to Ashoka Buildcon

DIIs place big bets on 2 pharma giants. Multibaggers in the making?

By Suhel Khan As the world’s largest supplier of generic drugs, renowned for its cost-effective vaccines and generic medicines, India plays a very important role in global medicine. The Indian pharmaceutical industry has transformed into a flourishing sector, currently ranking third globally in terms of production volume and 14th in terms of value. Over the

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

How will markets open today? Here are top 7 cues to watch ahead of trading on February 11

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 are implied to open on a higher note on Tuesday. Also, Asian markets opened majorly on a higher note in early trade hours as investors looked past the tariff threats from Donald Trump. Previously, on Monday, the NSE Nifty 50 finished the

Stocks To Watch: Reliance Ind, Grasim Ind, Bata, Titan, ONGC, IHCL, Nykaa, Lupin, Eicher Motors, Ahoka Buildcon

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a higher opening on Tuesday. Here’s a look at the key stocks to watch in trade. Stocks in Focus: Here’s a comprehensive list of stocks to keep in mind before you start your day. From Reliance Industries to Ashoka Buildcon

DIIs place big bets on 2 pharma giants. Multibaggers in the making?

By Suhel Khan As the world’s largest supplier of generic drugs, renowned for its cost-effective vaccines and generic medicines, India plays a very important role in global medicine. The Indian pharmaceutical industry has transformed into a flourishing sector, currently ranking third globally in terms of production volume and 14th in terms of value. Over the

Rupee fall hurts India Inc hard

The rupee inched closer to the 88-mark against the US dollar on Monday, putting companies in import-sensitive sectors on the edge. While firms fear a surge in imported inflation on account of rupee depreciation, consumer electronics companies, for instance, are taking price hikes to protect margins. In sectors such as thermal power, where the cost

Bata India Q3 profit grows marginally to Rs 58.6 crore on weak demand

Footwear major Bata India on Monday reported a marginal 1% growth in its net profit at Rs 58.6 crore during the October-December quarter, as compared to Rs 57.9 crore in the same quarter in 2023-24. Bloomberg consensus estimates had pegged the net profit during the quarter at Rs 72 crore.  The company’s revenue from operations