&w=3840&q=100)
Sebi imposes ₹25 lakh penalty on MCX for disclosure lapses on payments
While the market regulator had dropped several other allegations stated in the show-cause notice issued in October 2023 against the exchange and its management, Sebi has confirmed the violations of disclosure norms.
MCX paid ₹222 crore for three quarters between October 2022 and June 2023 to 63 moons for continuing services after the end date of the agreement, while the TCS platform was not ready. Sebi noted that these payments were not disclosed by MCX to the public in press releases or notes to the quarterly financial results, resulting in delayed disclosures.
The amount paid to 63 moons for the three quarters exceeded the exchange's annual profit of ₹118 crore in the previous financial year (FY21-22).
MCX had cited the uncertainty surrounding the shift to the new CDP due to prevailing Covid restrictions and the complexity of the project. The Sebi order also considered that any coercive legal action by MCX against 63 moons could have led to 63 moons abruptly stopping services after the end date of the agreement, which could have jeopardised the continuity of operations.
'Faced with a dilemma — damned if you do, damned if you don't — MCX went ahead with the choice of a temporary extension of services, for which 63 moons extracted its pound of flesh. While the losses to MCX were substantial, it had to be ensured, at any cost, that the exchange and its Clearing Corporation (CC) functioned without any disruptions,' noted Sebi whole-time member Ashwani Bhatia in the order.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
3 hours ago
- Time of India
Niranjan Gupta named HUL's CFO-designate
New Delhi: Consumer goods company Hindustan Unilever on Thursday named Niranjan Gupta its chief financial officer-designate and a member of the management committee with effect September 1. Gupta, a former chief executive of two-wheeler maker Hero MotoCorp who had started his career at HUL, will take over from Ritesh Tiwari as executive director-finance and CFO on November 1, company said in a news release. Tiwari has been named global head of M&A and treasury at HUL parent Unilever effective November 1. Gupta has experience across finance, M&As, supply chain and strategic roles in diverse industries. Following his initial two-decade stint at HUL, he spent three-years at Vedanta and joined Hero MotoCorp in 2017 as its CFO. He was elevated to its CEO in 2023. He had played a pivotal role at Hero MotoCorp, strengthening the financial health of its business, creating a strategy for the long term and establishing strategic partnerships, including with American motorcycle maker Harley-Davidson. He will report to CEO and managing director Priya Nair. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your Car Insurance Provider Is Laughing at You Right Now – Here's Why AutoTrends Learn More Undo Tiwari took over as the finance director and CFO at HUL in 2021 and helped steer the company through the Covid-19 pandemic. In his new role, he will be based out of London. Tiwari allocated capital in line with the company's strategic priorities to drive competitive volume-led growth amid volatile market conditions. He led key acquisitions, disposals and partnerships that have helped HUL in sharpening its portfolio. More recently, he steered the ice-cream business demerger into Kwality Walls (India) Ltd, paving the way for its independent listing. Live Events
India.com
4 hours ago
- India.com
Big update for share market investors! Sebi hints regulated platform for…, plans to raise tenure of…
Stock Market Markets regulator Sebi chairperson Tuhin Kanta Pandey on Thursday proposed the creation of a regulated platform for pre-IPO share trading to replace the largely unregulated grey market. The proposed framework would allow investors to buy and sell shares during the three-day gap between IPO allotment and listing within a formal, transparent environment and thereby curb the risks associated with grey market dealings. SEBI Plans To Raise Tenure Of Equity Derivatives Pandey also indicated that Sebi is exploring steps to extend the tenure and maturity of equity derivatives products in a phased manner. The move is expected to discourage excessive speculative trading in these instruments, where 91% of individual traders suffered losses in FY25. Speaking at the FICCI Capital Market Conference 2025, Sebi chief said pre-listing information is often not enough for investors to make an investment decision. Add as a Preferred Source In a bid to further deepen the capital market and protect investors, he hinted at 'an initiative, on a pilot basis – for a regulated venue where pre-IPO companies can choose to trade, subject to certain disclosures'. On equity derivatives, Sebi is seeking ways to deepen cash equity markets, while enhancing the quality of derivatives through longer-tenure products. Also Read: No more dependency on foreign investors! Indian stock market becoming independent with…, not SBI or HDFC Sec SEBI On Platform For Pre-IPOs Currently, there is a gap of at least three trading days when the IPO closes for subscription and opens for trading, and during this period trading in the grey market happens. In the unlisted space, which largely remains unregulated, is getting a lot of traction among investors despite carrying significant risk for a lot of investors. The remarks come at a time when the Indian IPO market has become very active with the listing of 48 main-board companies so far in 2025. When asked whether there is any discussion with depositories on the pre-IPO trading platform, he said, 'This is only in-principle with what I'm stating'. Story Highlights SEBI chief on platform for Pre-IPOs SEBI to raise tenure of equity derivatives SEBI on regulated platform for Pre-IPOs SEBI on tenure for equity derivatives Pandey said challenges that could confront the regulator range from unnecessary processes, pain points that cause avoidable friction in fundraising, disclosures, and investor onboarding, emerging areas, products and asset classes for creating both demand and supply of capital. (With Inputs From PTI)
&w=3840&q=100)
Business Standard
4 hours ago
- Business Standard
Sebi plans longer-tenor derivative products: Chairman Tuhin Kanta Pandey
The Securities and Exchange Board of India (Sebi) plans to pivot towards longer-tenor derivatives products to ensure they serve their intended purpose of hedging, said chairman Tuhin Kanta Pandey on Thursday. He called for greater 'quality and balance' in the derivatives market, where trading volumes are disproportionately higher than the underlying cash segment. Pandey also signalled the possibility of a pilot platform for pre-IPO companies. Speaking at the 22nd edition of Ficci's Annual Capital Markets Conference (Capam), the Sebi chairman said: 'We have often stated that equity derivatives play a crucial role in capital formation, but we must ensure quality and balance. We will consult with stakeholders on ways to improve, in a calibrated manner, the tenor and maturity profile of derivative products, so that they better serve hedging and long-term investing.' His remarks come against the backdrop of mounting losses for individual investors in derivatives trading and allegations of manipulation by global high-frequency trading firms. Pandey's comments sparked speculation that Sebi may soon discontinue weekly derivatives contracts, triggering a decline of 7.7 per cent in BSE shares. Short-term contracts account for the bulk of exchange volumes. Pandey, however, ruled out such a step in the near term. At the same event, Sebi Whole-Time Member Ananth Narayan G said: 'We are considering ways to improve the tenor and maturity profile of derivative products, so that they better support sustained capital formation and foster all-round trust in the ecosystem. This may also need to be achieved in a calibrated manner, giving the system adequate time to adjust.' Pandey also stressed the need to deepen the cash equities market, where daily traded volumes have doubled in the past three years, though 'much more needs to be done'. He further hinted at a pilot project for pre-IPO companies. 'In a booming IPO market, investors are eagerly anticipating what is next, yet pre-listing information is not enough for investors to make an investment decision. Can we think of an initiative, on a pilot basis, for a regulated venue where pre-IPO companies can choose to trade, subject to certain disclosures?' he asked. A government official present at the conference said the Ministry of Corporate Affairs (MCA) had received details of such a proposal from Sebi. The move is expected to bring trading in unlisted markets under a formal mechanism, enabling tax collection on such transactions. The project involves unlisted companies that come under the MCA. A similar mechanism had been flagged by Pandey's predecessor in January as a way to curb grey market activity. Pandey also invited suggestions on facilitating fundraising, disclosures, and investor onboarding. He asked the industry to identify emerging products and asset classes that could boost demand and supply of capital. In his address, the Sebi chairman highlighted the need for addressing the growing role of artificial intelligence (AI) in customer engagement, risk assessment and fraud detection 'We have to think of AI as an assist, not a substitute for judgment,' he said. Pandey also called for faster rumour verification and clearer communication with investors.
