ED bars summons to advocates, exceptions need director's approval under law
The Enforcement Directorate (ED) on Friday issued a circular instructing its field formations not to issue summons to any advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023. This section states that no advocate, at any point of time, should disclose any communication made to him without the client's consent.The circular mandates that any summons under the exceptions to this provision require prior approval from the Director of the Enforcement Directorate.advertisementThis comes amid the probe agency's investigation into a money laundering case involving Care Health Insurance Ltd (CHIL) concerning the issuance of Employee Stock Options (ESOPs) at significantly undervalued prices.
The case centres around the Employee Stock Ownership Plans (ESOPs) issued on May 1, 2022, which were reportedly priced much lower than market value. This issuance allegedly took place despite a formal rejection of the ESOP proposal by the Insurance Regulatory and Development Authority of India (IRDAI).As part of the ongoing probe, the ED summoned Pratap Venugopal, an independent director of CHIL, to ascertain the circumstances surrounding the issuance of the ESOPs and the board's discussions following IRDAI's rejection. However, given that Venugopal is a senior advocate practicing in the Supreme Court, the summons issued to him has now been withdrawn.advertisementThe ED said that any documents required from him in his capacity as an independent director will be requested via email.On July 23 last year, the IRDAI directed CHIL to revoke or cancel any ESOPs that remain unallotted. In addition, the regulator imposed a penalty of Rs 1 crore on CHIL for non-compliance with its directives.Must Watch
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
2 hours ago
- Hans India
Gau-Moolya se Rozgaar Tak: Venugopal Naidu's Vision for Bharat's Youth
New Delhi [India], June 21: Venugopal Naidu Puvvada, the National Coordinator at Hindrise (Gauraksha Wing), Aatmnirbhar Sena, and Rashtriya Gau Sevak Sangh (RGSS), has launched a dynamic campaign, Gau-Moolya se Rozgaar Tak Initiative to promote Youth Skill Development through the Gau-Moolya Industry. His efforts are in the direction of combatting youth unemployment, creating millions of employment opportunities and reviving India's ancient traditions. The unique mission aims to harness the less explored potential of cow-derived products such as dhoop, phenyl, ghee, and gaumutra-based wellness ideas and turn them into viable economic opportunities for unemployed and underemployed youth across rural and semi-urban India. Speaking on the initiative, Venugopal Naidu Puvvada expressed his deep conviction in the socio-economic and spiritual values of cows in Bharat. He said, 'The Gau-Moolya se Rozgaar Tak campaign has already started and will cover over 200 districts, primarily in the regions of Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar, and Maharashtra, with a target to skill 50,000 youth by July 2026. Jab Tak Gaay ka samman nahi hoga, tab tak Gaon ka Vikas Adhura Rahega. Gau-moolya is beyond products. It's about 3 P's, i.e., Pride, Prosperity, and Parampara.' What is Gau-Moolya? Gau-moolya (Cow-Value) is a holistic ecosystem where several cow derivatives are used to create commercially viable, health-positive, and environment-friendly products. Through Gau-Moolya se Rozgaar Tak Initiative, the youth will learn to produce- Bilona Ghee (Hand-churned, Ayurvedic Process) Gaumutra-based Wellness Products (Floor Cleaner, Shampoos, Immunity Booster Syrups) Natural Dhoop and Agarbatti (Made with Gobar, Kapoor, and Herbs) Eco-friendly Phenyl and Disinfectants Cow Dung Diyas and Eco-bricks Ayurvedic Soaps and Face Packs using Cow Milk, Ghee, and Dung Ash Incense Cones, Candles, and Skin Care Cosmetics Manure and Bio-enzymes for Organic Farming Herbal Toothpaste infused with Gaumutra and Neem 'The cow dung and urine are not only confined to the Aastha of Indians, but it is strengthening the Arthvyavastha of India. With Gaumoolya, Youth can easily earn Rs 15,000 to Rs 60,000 per month with minimal investment. So, you can understand that it's not just about creating jobs but also about making Gauprenenurs in the country. 'Venugopal explains. Gau Rashtra Yatra for GauMoolya: The Talk of the Town The GauMoolya se Rozgaar Tak initiative, under the joint coordination of Rashtriya Gau Sevak Sangh, Hindrise, Aatmnirbhar Sena, Mati India, Khabar Kisan Ki, Dairy Agri Consultant, and Kamdhenu Gauveda will establish skill training clusters in over 200 districts, starting with cow belts in Uttarakhand, Uttar Pradesh, Bihar, Rajasthan, Gujarat, Haryana, and Maharashtra. Gau-Moolya se Rozgaar Tak initiative is a part of currently running Gau Rashtra Yatra led by Bharat Singh Rajpurohit (Trustee and Director at RGSS- Indigenous Cattle Development), Narendra Kumar (Founder and National Convener of RGSS and Hindrise), Rohit Bisht (Founder of Mati India and Trustee & Director of Digital Transformation at RGSS), Venugopal Naidu Puvvada (National Coordinator- Tech and Innovation at RGSS), and Harshad Gugaliya (Founder of Kamdhenu Gauveda). Gaupreneur Movement: From Village to Vishwaguru To scale the impact, the team of RGSS will launch 'GauMoolya Cart,' a national digital platform for launching these products online. The goal is to connect rural artisans directly to the urban market and even open the window for export opportunities. Venugopal Naidu on Mission gauMoolya Venugopal Naidu Puvvada shed light on Mission Gaumoolya and said, 'We are targeting 200+ districts with a 2028 forecast reflecting Rs 7000 crore cow-based industry. India needs not just jobs but Dharmic entrepreneurship. GauMoolya is Bharat's chance to lead the global wellness and sustainability revolution. Youth+Cow+Skill = Swadeshi Vikas. This is our formula for Aatmnirbharta.'
Economic Times
5 hours ago
- Economic Times
Sebi's June 2025 board meeting: A regulatory makeover with market empathy
Simplification of Institutional Fund Raising Startup Founders Rejoice Live Events Freedom to Merchant Bankers Welcome to Indian Markets Key Message: (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Securities and Exchange Board of India (Sebi) in its last board meeting unveiled a sweeping set of regulatory reforms that reflect both market responsiveness and forward-looking policymaking. This meeting wasn't just a quarterly update — it was a full-body reset on many longstanding regulatory frameworks, aimed at easing compliance burdens, deepening market access , and aligning Indian capital markets with global meeting also marked a strategic recalibration of SEBI's regulatory posture. It demonstrated a commitment to reducing compliance friction while safeguarding core market integrity. In doing so, SEBI is responding to the evolving expectations of a maturing market, one that now hosts retail participation at scale, large institutional flows, digitised securities infrastructure, and increased cross-border also gave its green light to a streamlined disclosure regime for Qualified Institutions Placements. The lengthy and often duplicative disclosure requirements will give way to concise, issue-specific and material risk disclosures, leveraging publicly available data. Companies will no longer need to reproduce financials already present in the public domain, making capital-raising quicker and more new-age tech companies decide to go public, they reach a point where they can no longer use the ESOP (Employee Stock Option Plan) benefits available to startup promoters. At the same time, the founders are usually classified as 'promoters' in the draft prospectus (DRHP) because of their combined shareholding. Once identified as promoters, and given the rules that apply to listed companies under SEBI's ESOP regulations, they are no longer allowed to receive ESOPs—regardless of whether the company is still considered a has been a long-standing problem, and many industry bodies, including FICCI, have given representation to the regulator to address this concern. Resultantly, SEBI in the floated consultation paper of March 2025 sought to clarify the treatment of Employee Stock Ownership Plans granted to per this recent progressive decision, the startup founders classified as promoters can now continue to hold and/or exercise share-based benefits, such as ESOPs, even after the company lists, provided these benefits were received at least one year prior to filing the previously proposing that merchant bankers separate their non-regulated activities into a different legal entity, SEBI has eased its stand. Merchant bankers can now conduct regulated as well as certain non-regulated, fee-based financial services within the same entity — provided they comply with their respective financial sector regulators' guidelines and SEBI-prescribed conditions. This was in direct response to feedback from key industry bodies like FICCI, which warned of unnecessary cost and a move intended to enhance flexibility for companies considering reverse flipping and improve investor participation, SEBI approved amendments to its ICDR Regulations. Following a consultation paper of March 2025, SEBI relaxed the one-year minimum holding period requirement for equity shares arising from the conversion of fully paid-up compulsorily convertible securities acquired under approved schemes. Investors can now offer these shares in a public issue, harmonising these provisions with the existing minimum promoters' contribution requirements.'Ease of Doing Business is not a dilution — it is a deliberate design. But it must be paired with credible safeguards, professional discipline, and investor-first thinking.'With reforms addressing Alternative Investment Funds, Real Estate and Infrastructure Investment Trusts (REITs/InvITs), Merchant Bankers, Debenture Trustees, and more, SEBI is laying down a unified, consistent, and future-compatible regulatory said, there is scope to do more. The regulator could further simplify the capital-market instruments — for example, by allowing a fast-track conversion process for Private InvITs to list as Public InvITs. Steps like these will make the Indian capital markets even more accessible, liquid, and investor-friendly.
Time of India
5 hours ago
- Time of India
Sebi's June 2025 board meeting: A regulatory makeover with market empathy
The Securities and Exchange Board of India (Sebi) in its last board meeting unveiled a sweeping set of regulatory reforms that reflect both market responsiveness and forward-looking policymaking. This meeting wasn't just a quarterly update — it was a full-body reset on many longstanding regulatory frameworks, aimed at easing compliance burdens, deepening market access , and aligning Indian capital markets with global standards. This meeting also marked a strategic recalibration of SEBI's regulatory posture. It demonstrated a commitment to reducing compliance friction while safeguarding core market integrity. In doing so, SEBI is responding to the evolving expectations of a maturing market, one that now hosts retail participation at scale, large institutional flows, digitised securities infrastructure, and increased cross-border alignment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's The Average Price of a 6-Hour Gutter Upgrade in Rowland Heights Read More Undo Simplification of Institutional Fund Raising Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Ads By Google Ad will close in 29 Skip ad in 4 Skip Ad SEBI also gave its green light to a streamlined disclosure regime for Qualified Institutions Placements. The lengthy and often duplicative disclosure requirements will give way to concise, issue-specific and material risk disclosures, leveraging publicly available data. Companies will no longer need to reproduce financials already present in the public domain, making capital-raising quicker and more efficient. Startup Founders Rejoice When new-age tech companies decide to go public, they reach a point where they can no longer use the ESOP (Employee Stock Option Plan) benefits available to startup promoters. At the same time, the founders are usually classified as 'promoters' in the draft prospectus (DRHP) because of their combined shareholding. Once identified as promoters, and given the rules that apply to listed companies under SEBI's ESOP regulations, they are no longer allowed to receive ESOPs—regardless of whether the company is still considered a startup. This has been a long-standing problem, and many industry bodies, including FICCI, have given representation to the regulator to address this concern. Resultantly, SEBI in the floated consultation paper of March 2025 sought to clarify the treatment of Employee Stock Ownership Plans granted to founders. Live Events As per this recent progressive decision, the startup founders classified as promoters can now continue to hold and/or exercise share-based benefits, such as ESOPs, even after the company lists, provided these benefits were received at least one year prior to filing the DRHP. Freedom to Merchant Bankers After previously proposing that merchant bankers separate their non-regulated activities into a different legal entity, SEBI has eased its stand. Merchant bankers can now conduct regulated as well as certain non-regulated, fee-based financial services within the same entity — provided they comply with their respective financial sector regulators' guidelines and SEBI-prescribed conditions. This was in direct response to feedback from key industry bodies like FICCI, which warned of unnecessary cost and complexity. Welcome to Indian Markets In a move intended to enhance flexibility for companies considering reverse flipping and improve investor participation, SEBI approved amendments to its ICDR Regulations. Following a consultation paper of March 2025, SEBI relaxed the one-year minimum holding period requirement for equity shares arising from the conversion of fully paid-up compulsorily convertible securities acquired under approved schemes. Investors can now offer these shares in a public issue, harmonising these provisions with the existing minimum promoters' contribution requirements. Key Message: ' Ease of Doing Business is not a dilution — it is a deliberate design. But it must be paired with credible safeguards, professional discipline, and investor-first thinking .' With reforms addressing Alternative Investment Funds, Real Estate and Infrastructure Investment Trusts (REITs/InvITs), Merchant Bankers, Debenture Trustees, and more, SEBI is laying down a unified, consistent, and future-compatible regulatory foundation. That said, there is scope to do more. The regulator could further simplify the capital-market instruments — for example, by allowing a fast-track conversion process for Private InvITs to list as Public InvITs. Steps like these will make the Indian capital markets even more accessible, liquid, and investor-friendly.
