Informist, Tuesday, May 11, 2021

By Rajesh Gajra

In October, the Securities and Exchange Board of India had laid out extensive norms on the reporting of holdings of foreign portfolio investor groups and other FPIs in Indian companies, held in offshore derivative instruments and depository receipts.

The reporting norms were reportedly set to kick in from Apr 1.

According to a report by financial daily Business Standard, SEBI has now put these new reporting norms on hold, which have led to regulatory uncertainty.

A soft launch of the reporting norms should have taken place as scheduled.

While FPI bodies have been after SEBI to cancel the new norms or dilute them substantially, SEBI must stand its ground. All transactions by FPIs in shares of Indian companies are done in a fiduciary capacity at the client level.  

FPIs are expected to comply with regulatory requirements of all the jurisdictions they operate in.

It is possible that some FPIs may have had difficulties in complying with SEBI's circular on the new reporting norms for holdings through offshore derivative instruments and foreign depository receipts. A temporary relief could have been granted on a case-to-case basis.

A blanket hold on the new reporting norms does not help the cause of transparency. SEBI must bring back in force the circular at the earliest.

LATEST ANNOUNCEMENTS

* SEBI seeks public view on recommendations for social stock exchange

* SEBI asks AMCs to pay 20% of key employees' compensation as MF units

* SEBI approves appointment of Arun Raste as MD of NCDEX

* SEBI advises investors to be cautious of fraud, impersonation

ORDERS, ADJUDICATION PROCEEDINGS

* SEBI bans 6 entities for 2 yrs for manipulative trades in Biocon share trading case (PTI)

* SEBI orders co to refund 298 mln rupees raised in deemed public issue

* SEBI levies 13-mln-rupee fine on 5 in Birla Power GDR fraud case

* SEBI fines 65 entities for synchronised trading in Vakrangee shares

REGULATIONS (Announced in the past three months)

* SEBI paper proposes safeguards against misuse of client collateral

* SEBI notifies new business sustainability report for listed cos

* SEBI extends reporting timelines for debenture trustees by 45 days

* SEBI asks MFs to furnish details of only schemes that are invested in

DATA FROM SEBI

IPO/FPO/NFO

* Sona Comstar gets SEBI's go ahead to float 60 bln rupees IPO (PTI)

* Fincare Small Finance Bank files draft prospectus with SEBI

* Power Grid files final offer document for InvIT with SEBI

* Aditya Birla Sun Life MF seeks SEBI's nod for nifty healthcare ETF

SEBI IN NEWS

* SEBI vets stake control in Zomato's IPO papers for China firm's role (BS)

* SAT upholds SEBI order against 63 Moons Technologies in STP case (PTI)

* SEBI to auction property of PVP Global Ventures on May 12 (PTI)

* SEBI exempts Anurag Benefit Trust from open offer obligations (PTI)

Sources - Television, Print, or Web Editions of: PTI--Press Trust of India, BS--Business Standard, ET--The Economic Times, Moneycontrol, CNBC TV-18, Mint, BL--The Hindu Business Line, TH--The Hindu, RTR—Reuters, BT--Business Today, IANS--Indo-Asian News Service, IE— The Indian Express, ToI--The Times of India, BB-Bloomberg Quint

Internet links: http://www.sebi.gov.in

# –-- Data not available for May 6-7

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Compiled by Nivedita Yadav

Edited by Maheswaran Parameswaran

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