Latest news with #PITRegulations
India.com
03-05-2025
- Business
- India.com
Bad news for Mukesh Ambani as SAT rejects Reliance plea against...., may have to face penalty of...
Bad news for Mukesh Ambani as SAT rejects Reliance please against.... In a big worry for Mukesh Ambani, the Securities Appellate Tribunal (SAT) dismissed Reliance Industries' appeal against a Securities and Exchange Board of India (SEBI) order imposing a Rs 30 lakh penalty for violating Prohibition of Insider Trading (PIT) Regulations. In its June 2022 adjudicating order, SEBI found RIL in breach of PIT Regulations for failing to disclose details of a potential investment deal with Facebook in Jio Platforms promptly. 'We find the appellants in violation of Principle 4, Schedule A of the PIT Regulations and uphold the SEBI order,' said the SAT bench, presided over by Justice P S Dinesh Kumar. What is the case? The case relates to a confidentiality and non-disclosure agreement signed between RIL and Facebook in September 2019, followed by a non-binding term sheet on March 4, 2020, for Facebook's investment in Jio Platforms. Legal experts said that while the monetary penalty in this case was just Rs 30 lakh, the SAT judgement could set a precedent for companies on handling news leaks and disclosures. On March 24, 2020, the Financial Times newspaper reported that Facebook was nearing a deal to acquire a 10 per cent stake in Jio. Domestic media also followed up the news report, triggering a 15 per cent surge in RIL's share price. RIL formally disclosed the Jio-Facebook deal to stock exchanges only on April 22, 2020, after executing a definitive transaction document, prompting another 10 per cent jump in its stock price.
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Business Standard
02-05-2025
- Business
- Business Standard
SAT dismisses Reliance Industries plea in Jio-Facebook deal disclosure case
The Securities Appellate Tribunal (SAT) on Friday dismissed Reliance Industries' (RIL) appeal against a Securities and Exchange Board of India (Sebi) order imposing a ₹30 lakh penalty for violating Prohibition of Insider Trading (PIT) Regulations. In its June 2022 adjudicating order, Sebi found RIL in breach of PIT Regulations for failing to disclose details of a potential investment deal with Facebook in Jio Platforms promptly. 'We find the appellants in violation of Principle 4, Schedule A of the PIT Regulations and uphold the SEBI order,' said the SAT bench, presided over by Justice PS Dinesh Kumar. The case relates to a confidentiality and non-disclosure agreement signed between RIL and Facebook in September 2019, followed by a non-binding term sheet on March 4, 2020, for Facebook's investment in Jio Platforms. Legal experts said that while the monetary penalty in this case was just ₹30 lakh, the SAT judgement could set a precedent for companies on handling news leaks and disclosures. On March 24, 2020, the Financial Times reported that Facebook was nearing a deal to acquire a 10 per cent stake in Jio. Domestic media also followed up the news report, triggering a 15 per cent surge in RIL's share price. RIL formally disclosed the Jio-Facebook deal to stock exchanges only on April 22, 2020, after executing a definitive transaction document, prompting another 10 per cent jump in its stock price. RIL argued it was not obligated to confirm or deny market rumours or disclose the deal under Principle 4, as the regulation applies only to 'selective leaks.' Sebi countered that confidentiality agreements do not override PIT Regulations and that undisclosed price-sensitive information (UPSI) must be disseminated promptly if leaked. The SAT ruled that RIL was duty-bound to disclose the information once it appeared in credible media reports. 'It was RIL's responsibility to make prompt disclosure to ensure information was generally available, especially when selectively reported by international media to a limited audience,' the order stated. The tribunal emphasised that in cases of uncertainty, companies must disclose information to protect shareholders. It also noted the credibility of the Financial Times report, given the involvement of two global conglomerates and the need for high-level approvals in a cross-border deal. 'RIL's argument that only a binding agreement triggers disclosure lacks merit and undermines the spirit of PIT Regulations,' the order added.
Mint
26-04-2025
- Business
- Mint
Stock market this week: Top gainers and losers – market movers you need to know
1/ SEBI's circular dated December 12, 2023, requires Stock Brokers (SBs) and Clearing Members (CMs) to upstream clients' funds to Clearing Corporations (CCs) at the end of each business day. This can be done in the form of cash, lien on Fixed Deposit Receipts, or by pledging units of Mutual Fund Overnight Schemes (MFOS). To facilitate this, a change in cut-off timings for determining applicable NAVs for repurchase of units in overnight schemes has been proposed. Effective from June 1, 2025, the new cut-off timings are as follows: applications received up to 3 PM will use the closing NAV of the day preceding the next business day, and those received after 3 PM will use the closing NAV of the next business day. For online applications, the cut-off time is 7 PM. These changes are intended to ensure efficient processing and safeguarding of clients' funds. 2/ The Securities and Exchange Board of India (SEBI) has extended the automated implementation of the trading window closure to immediate relatives of Designated Persons (DPs) in listed companies. This applies during the period from the end of every quarter until 48 hours after the declaration of financial results. The framework aims to ensure compliance with PIT Regulations by freezing the PAN of DPs at the security level, with phase-wise implementation starting July 1, 2025, for the top 500 companies, and October 1, 2025, for others. This approach strengthens market surveillance and investor protection. This initiative will help streamline compliance and enhance transparency, fostering a more secure trading environment. 3/ Nippon AMC, SBI AMC, Bajaj AMC, Groww AMC, Motilal AMC, and Edelweiss AMC have launched multiple new fund offerings (NFOs), providing investors with diverse investment options. These include the Nippon India Nifty 500 Quality 50 Index Growth Direct Plan and Nippon India Nifty 500 Low Volatility 50 Index Growth Direct Plan, which focus on different Nifty 500 indices to cater to varying risk appetites. SBI AMC introduced the SBI Income Plus Arbitrage Active FoF Growth Direct Plan, aiming to provide a balanced approach to investment. Bajaj Finserv offers the Nifty Next 50 Index and Nifty 50 Index Growth Direct Plans for investors seeking exposure to broader market indices. Groww AMC introduced the Gilt Growth Direct Plan, focusing on government securities, while Motilal Oswal launched the Infrastructure Growth Direct Plan, targeting infrastructure sector growth. Edelweiss also unveiled the BSE Internet Economy Index Growth Direct Plan, catering to investors interested in the digital and internet economy sectors. These NFOs offer investors an opportunity to diversify and target different segments of the market. Index Returns Best Performers Worst Performers Bought and Sold Most Watchlisted Kuvera is a free direct mutual fund investing platform. Unless otherwise stated data sourced from BSE, NSE and kuvera. First Published: 26 Apr 2025, 11:42 AM IST
The Hindu
21-04-2025
- Business
- The Hindu
SEBI extends PAN freeze to immediate kin of insider trading norm violators
The trading windows of immediate relatives of those involved in insider trading will also be closed, the Securities and Exchange Board of India (SEBI) said in a circular on Monday. In an earlier circular dated September 23, 2024, SEBI directed stock exchanges to develop a system to restrict trading by designated persons (DP) of listed companies. This would be done by stock exchanges by freezing the PAN of DPs. DP refers to anybody who might be in possession of Unpublished Price Sensitive Information (UPSI). This was put in place by SEBI to 'ease compliance and prevent inadvertent non-compliances of provisions of PIT Regulations,' the circular stated. The markets watchdog has now extended this to the immediate relatives of the DPs, as per its latest circular. 'Considering the effective implementation of the framework to DPs of listed companies and the consultations held with the Stock Exchanges and Depositories, the above framework is hereby extended to immediate relatives of DPs for listed companies,' SEBI said in its latest circular. The changes come a week after the regulator suspended Gensol Engineering and its promoters from trading in the markets after it found that funds borrowed for business purposes were misappropriated and faulty and fake disclosures about the loan default were made to credit rating agencies. The promoters were found to be trading in the stocks of Gensol through Wellray Solar, another related party of the company, SEBI found. Blu Smart, an EV ride hailing service was among the related parties of Gensol.
