Latest news with #Sebi
Time of India
7 hours ago
- Business
- Time of India
Lenders plan to exit Rs 3,800-cr JPVL investment
New Delhi: Lenders to Jaiprakash Power Ventures (JPVL) are looking to sell their investment worth ₹3,800 crore in the listed power company, people aware of the discussions told ET. The lenders came to own the equity in lieu of the funds they had advanced during debt restructuring , The investment is in the form of compulsorily convertible preference shares (CCPS) that were allotted at the time of the company's debt restructuring in 2019. The CCPS were issued in lieu of downsizing the company's repayable debt. Explore courses from Top Institutes in Please select course: Select a Course Category Others MBA Finance PGDM Data Analytics Leadership Data Science Public Policy CXO Product Management MCA Cybersecurity Healthcare healthcare Data Science Degree Project Management Digital Marketing others Management Design Thinking Operations Management Artificial Intelligence Technology Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details The plan was discussed at a meeting of JPVL's committee of creditors last weekend, said the people aware of the lenders' plans. JPVL has a market capitalisation of ₹14,686 crore. It is profitable unlike its parent Jaiprakash Associates (JAL), which is undergoing insolvency proceedings. The buyer of the CCPS will own a sizeable 25% stake in JPVL upon conversion of the CCPS into shares. The transaction will also trigger an open offer for a further 26% to public shareholders as per Sebi norms. Effectively, the buyer could own up to 51% of the company. Live Events ICICI Bank leads the creditor group. The lenders have decided to approach 10-12 large power generation companies to assess their interest in purchasing the instruments, according to sources. The plan could face setbacks if bidders don't show interest. JPVL's shares surged 5% on Tuesday hitting the upper circuit and closed at ₹21 .43 apiece on the national stock exchange. ICICI Bank did not respond to ET's queries on the matter. JAL only has a 24% ownership in JPVL. If the CCPS changes hands then the control of the company will pass on to a new set of shareholders leaving JAL as a passive investor. Lenders have no interest in holding a stake in the company or getting involved operationally. JPVL has operational thermal and hydro power plants with 2.2 gigawatts of electricity generation capacity.
Mint
10 hours ago
- Business
- Mint
Sebi slaps ₹10 lakh fine on entity for insider trading during HDFC merger
New Delhi: Capital markets regulator Sebi on Tuesday levied a fine of ₹ 10 lakh on an entity for trading in the shares of HDFC Ltd and HDFC Bank while in possession of unpublished price sensitive information (UPSI) related to their merger. Sebi found that Rupesh Satish Dalal HUF had traded in derivatives of both HDFC entities on April 1, 2022 -- just days before the official announcement of the merger between HDFC Ltd and HDFC Bank on April 4, 2022. Rupesh Satish Dalal is the karta of Rupesh Satish Dalal HUF. The regulator's probe revealed that Dalal had received UPSI through his son, who was in close and regular contact with a person (individual) who was an insider associated with Deloitte. Deloitte Touche Tohmatsu India LLP was engaged as the valuer for the merger exercise and the individual was part of the valuation team from March 29, 2022. The individual and Dalal's son were long-time friends and exchanged several calls in the run-up to the trades. Sebi also noted that a meeting between the two took place on March 31, a day before Dalal placed the trades. Sebi said the noticee (Rupesh Satish Dalal HUF) bought multiple call option contracts of HDFC Ltd and HDFC Bank Ltd on April 1, 2022, while being in possession of the UPSI. The regulator noted that once the information regarding the impending merger was disclosed, Rupesh Satish Dalal HUF immediately exited his positions on the same very date, i.e., on April 4, 2022. Thus, it is established that Rupesh Satish Dalal HUF has violated PIT (Prohibition of Insider Trading) regulations. The order came after NSE analysed the trading activity of various entities in the scrip of HDFC Ltd and HDFC Bank Ltd. Further, the bourse observed that the trading of certain clients including Rupesh Satish Dalal HUF pointed to the possibility of trading on the basis of UPSI. Consequently, the matter was forwarded to the Securities and Exchange Board of India (Sebi) for investigation. The period was from November 01, 2021 to April 30, 2022.
Economic Times
11 hours ago
- Business
- Economic Times
HDFC-HDFC Bank merger: Sebi penalises trader for insider trading
Markets regulator Sebi imposed a penalty of Rs 10 lakh on Rupesh Satish Dalal HUF for insider trading in the scrips of HDFC and HDFC Bank ahead of the April 2022 merger announcement. ADVERTISEMENT The case revolves around trading activity carried out by Rupesh Dalal, the Karta of the HUF, just days before the April 4, 2022, announcement that HDFC would merge into HDFC Bank. Sebi's investigation found that Dalal had purchased a series of call options in both stocks on April 1, 2022—three days before the official disclosure. The positions were squared off immediately after the announcement, yielding substantial profits: Rs 5.67 lakh from HDFC options and Rs 2.52 lakh from HDFC Bank. Sebi's order concluded that Dalal was in possession of Unpublished Price Sensitive Information (UPSI), received through an indirect regulator alleged that Mr X, a member of Deloitte's valuation team working on the merger, had passed UPSI to his friend Mr Y (Dalal's son), who then communicated the same to X and Y had already settled cases with Sebi earlier. The circumstantial evidence, including frequent calls and meetings between X and Y around the trading dates, supported the conclusion that Dalal traded on UPSI. ADVERTISEMENT The regulator dismissed Dalal's defence that his trades were based on technical analysis, noting that his history showed little to no activity in derivatives, and his aggressive positions on that specific date were uncharacteristic. The Rs 10 lakh penalty is to be paid within 45 days. The order underscores Sebi's continued emphasis on market integrity and its increasing reliance on circumstantial evidence and call data records in cracking down on insider trading. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
11 hours ago
- Business
- Economic Times
Sebi relaxes NRI trading norms in derivatives market
Markets regulator Sebi on Tuesday decided to abolish the mandatory requirement for NRIs to notify the names of clearing members or obtain a custodial participant (CP) code for trading in derivatives. ADVERTISEMENT Moreover, their position limits will be monitored at the client level, similar to domestic investors. The decision, based on the recommendation received from Brokers' Industry Standards Forum, is aimed at facilitating ease of doing investment to NRIs for trading in exchange traded derivatives contracts and bringing in operational efficiency. "It has been decided to do away with the mandatory requirement of NRIs having to notify the names of the clearing member/s and subsequent assignment of CP code to the NRIs by the exchange," Sebi said in its circular. For NRIs trading in exchange-traded derivative contracts without CP code, the exchange/clearing corporation would monitor the NRI position limits in the manner similar to the client-level position limits monitored by them, it added. Position limits for NRIs would be same as the client-level position limits specified by Sebi from time to time. ADVERTISEMENT At present, NRIs are required to inform stock exchanges about their clearing member and obtain a CP code, which is used by exchanges to track their positions in the derivatives segment. The regulator has directed stock exchanges and clearing corporations to implement the revised norms within 30 days. Also, they have been asked to allow existing NRI clients to opt out of the CP code framework by submitting an email request within 90 days. Further, members will be required to offer an option to NRIs who initially opt for CP code but later decide to exit, based on an email request. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
11 hours ago
- Business
- Economic Times
Sebi issues mechanism for monitoring of minimum investment threshold under SIF
Markets regulator Sebi on Tuesday came out with a mechanism for monitoring compliance with minimum investment threshold under Specialized Investment Funds (SIF). ADVERTISEMENT In case of any active breach of the threshold of Rs 10 lakh by an investor, including through transactions on stock exchanges or off-market transfers, Sebi said that all units of such investors held across investment strategies of the concerned SIF would be frozen for debit. Besides, a notice of 30 calendar days would be given to such investors to rebalance the investments in order to comply with the threshold. "In case an investor rebalances his/her investments in SIF within the notice period of 30 calendar days, the units of SIF of such investor shall be unfreezed, and no further action shall be taken with regard to compliance with minimum investment threshold," Sebi said in its circular. If the investor fails to rebalance the investments within a 30 calendar day period, the frozen units will be automatically redeemed by the AMC, at the applicable Net Asset Value. Specialized Investment Funds (SIFs), which allow mutual funds to launch advanced investment strategies as open-ended, close-ended and interval structures, will add depth and variety to the investment landscape of the country. For the purpose of SIF, the 'Active Breach' would mean fall in the aggregate value of an investor's total investment across all investment strategies of SIF, below the Minimum Investment Threshold of Rs 10 lakh, on account of any transactions -- redemption, transfer, sale -- initiated by the investor. (You can now subscribe to our ETMarkets WhatsApp channel)
