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New Indian Express
5 days ago
- Business
- New Indian Express
Sebi moots overhaul of related-party transaction norms for large companies
MUMBAI: The Securities and Exchange Board (Sebi) has proposed a sweeping overhaul of the norms dealing with related-party transactions (RPTs) as part of its focus on increasing the ease of doing business for large companies. Sebi has released its draft consultation paper late last evening which has called for sweeping changes in the norms dealing with materiality thresholds, potentially cutting compliance hurdles by nearly 60% for the top listed firms. Currently any RPT of Rs 1,000 crore or more or 10% of their annual consolidated turnover, by a listed company must seek shareholder approval. The proposed scale-based thresholds aim to slash red tape for large listed entities, but experts urge safeguards for minority shareholders and the consultation paper recommends a significant overhaul of materiality thresholds. The proposed 'scale-based threshold mechanism' seeks to determine when RPTs are considered material and must be placed before shareholders for approval. However, Sebi now thinks that this is onerous for large listed entities as large companies are forced to classify many substantial—but not necessarily significant—transactions as material, leading to excessive paperwork. To address this, Sebi has proposed replacing the 'one-size fits all' approach with a scale-based system, as follows:
New Indian Express
01-08-2025
- Business
- New Indian Express
Sebi set to overhaul large IPO norms; retail quota may be trimmed to 25%
MUMBAI: Amidst the frenetic activity in the primary market -- with July setting a record of sorts both in terms of the number of IPOs as well as the money mopped up -- the markets watchdog Sebi has proposed a major overhaul of the norms for large IPOs. This is likely to lead to an increase in allocation for institutional investors, while reducing the share reserved for retail investors to address the flagging retail participation in large issues. In a consultation paper released late Thursday night, the Securities and Exchange Board (Sebi) has proposed a flexible retail allocation framework for initial public offerings (IPOs) that are bigger than Rs 5,000 crore, allowing the retail quota to drop to 25% from 35% in a staggered manner, while boosting the qualified institutional buyer quota from 50% to 60% to ensure demand stability. The main objective of cutting the retail quota in large issues to 25% is to boost listing stability, the regulator said, adding the reduction in the minimum retail allocation for mega listings above Rs 5,000 crore will be graded. Sebi has sought public comments till August 21 on rebalancing investor mix to reflect shifting market realities. The proposals, which could reshape the allocation structure of equities to retail investors, aim at aligning the IPO structures with market realities—the surging mutual fund flows and growing average issue sizes—while safeguarding long-term investor confidence. 'Given the present allocation methodology and experience in recent issues, these large retail portions require lakhs of retail applicants for the category to be fully subscribed,' says the consultation paper. Examples from the consultation paper include Hyundai Motor's Rs 27,859 crore issue, where retail portion was subscribed at just 0.4x; Hexaware Technologies' Rs 8,750 crore (retail subscription 0.1x); and Afcons Infra's Rs 5,430 crore IPO that saw retail subscription at 0.9x. In contrast, mutual fund participation via SIPs and as QIBs has been surging. Retail investment via SIPs hit monthly record of Rs 26,688 crore in June while the mutual fund industry's assets under management crossed Rs 74.5 trillion, signalling strong and steady inflows from retail investors through funds. For a Rs 5,000-crore IPO, the minimum retail application size requires about 7–8 lakh bidders. For bigger issues, say, a Rs 10,000-crore offer, the number rises to at least 1.75 million applications, the paper says. Despite robust inflows into mutual funds, where retail investment via SIPs hit a monthly record of Rs 26,688 crore in May, direct retail participation in IPOs has plateaued, despite the market seeing dozens of issues in a month. For instance, this July set a record both in terms of number of issues as well as in the amount collected at over 45, of which 13 are mainboard issues worth Rs 38,000 crore and the rest SME issues, helping the country maintains the distinction being the second-largest IPO destination globally so far in 2025, following the US which has raised $6.7 billion.
New Indian Express
07-07-2025
- Business
- New Indian Express
Sebi chief rules out banning weekly expiries
Securities and Exchange Board (Sebi) chairman Tuhin Kanta Pandey on Monday ruled out barring weekly expiries in the wake of the ban on the US-based quant trader Jane Street last week and reiterated that Sebi will not allow anyone to engage in market manipulation. The regulator also justified the interim order issued against the Jane Street saying the regulator has all the powers to act against manipulative and fraudulent activities, and the interim order speaks for itself. Pandey further said Sebi will continue tightening surveillance on the derivatives market but ruled out curbing weekly index expiries at this stage. In his first comment on the matter, Pandey had last Saturday said the Jane Street scam was an issue of surveillance and that as the regulator it will not allow anyone to manipulate the market. The Sebi had last week barred US-based quant firm Jane Street from local markets for alleged manipulation of index levels and also ordered it disgorge Rs 4,843.5 crore of illicit gains. Pandey said, 'Sebi is focused on retail investor protection" and surveillance is tightened on both Sebi and exchange level, adding that the regulator was "working towards upgrading its surveillance tools.' Talking to reporters on the sidelines of a function at the NSE on Monday, he also said Sebi does not see 'many other risks' like the manipulations done by Jane Street. 'I don't think there are very many other risks," he said, replying to a specific question on whether there are other funds or investors who may have manipulated the markets in a similar way.
Bloomberg
07-07-2025
- Business
- Bloomberg
Indian Retail Traders Lose $12 Billion Trading Equity Options
Individuals in India lost over 1 trillion rupees ($12.2 billion) during the year ended March, trading equity derivatives in the world's top destination for such products, according to a study by the country's securities regulator. Nine out of 10 mom-and-pop investors suffered losses, the study published on Monday by the Securities and Exchange Board of India found. Retail investors had lost 748.12 billion rupees in the financial year ended March 2024, the study showed.
Time of India
05-05-2025
- Business
- Time of India
'Emerging technologies are redefining ESG reporting'
As ESG (Environmental, Social, and Governance) compliance becomes increasingly important, technology is emerging as a key enabler in streamlining sustainability reporting . Tired of too many ads? go ad free now India's Securities and Exchange Board (SEBI) has mandated the top 1,000 listed companies to prepare Business Responsibility and Sustainability Reports (BRSR), integrating sustainability into core corporate disclosures. However, the journey towards comprehensive ESG reporting is evolving, with SEBI recently deferring mandatory ESG disclosures for value chain partners to the 2026 financial year, acknowledging the challenges faced by companies in adapting to these requirements. In this context, Anup Garg, Founder and Director of World of Circular Economy (WOCE), spoke to TOI Tech and shared insights on how emerging technologies like AI, Blockchain, and automation are transforming ESG data management. Q. How is the global sustainability and ESG reporting landscape evolving, and where does India currently stand in terms of compliance readiness, especially with SEBI's Business Responsibility and Sustainability Reporting (BRSR) mandate? Globally, ESG reporting is becoming more structured, with frameworks like International Sustainability Standards Board (ISSB) and Corporate Sustainability Reporting Directive (CSRD) pushing for standardization, though some countries like the U.S. are seeing a shift toward reduced compliance. India, meanwhile, has taken a progressive approach with SEBI's BRSR mandate, integrating sustainability into core corporate disclosures. However, while many companies are reporting, the quality is uneven. Reports often lack depth, material relevance, or standardized data, highlighting the need for stronger capacity-building and clearer reporting guidance, especially for companies beyond the top 1000 listed. Tired of too many ads? go ad free now Q. What role is emerging technology like AI, blockchain, automation playing in transforming ESG data management and reporting agility for businesses? Emerging technologies are redefining ESG reporting from a manual, retrospective exercise to a real-time, strategic process. AI facilitates predictive insights and automated data validation, reducing human error and enhancing decision-making. Blockchain offers traceability and trust in sustainability claims, particularly for supply chain and carbon offset verification. Automation streamlines data collection across departments, enabling agile reporting and scenario analysis. These technologies are helping ESG evolve from a compliance tool to a business advantage. Q. How does WOCE leverage tech-driven platforms to simplify and strengthen sustainability reporting for Indian and global clients? WOCE's platform integrates AI-powered data collection, GHG accounting, validation, predictive analysis and real-time dashboards to enable businesses to centralize ESG data, assess performance, and generate framework-aligned reports. Its modular architecture ensures adaptability for both large corporations and smaller firms. Green APIs enable integration with enterprise systems like SAP and trading platforms, helping companies calculate emissions and manage carbon offsets across sectors. By automating data flow from core business operations into ESG platforms, they reduce manual effort, improve accuracy, and ensure real-time insights. This interoperability allows businesses to move beyond spreadsheets to intelligent, scalable ESG management tailored to their operational complexity. Q. For Indian companies, especially those outside SEBI's top 1000 list, how important is it to voluntarily align with ESG norms to stay globally competitive? For companies outside the regulatory perimeter, ESG alignment is less about compliance and more about long-term competitiveness. Global investors, supply chains, and even consumers are increasingly becoming ESG-conscious. Voluntary alignment signals forward-looking governance and can be pivotal in unlocking capital, building resilience, and accessing global markets. As ESG becomes a criterion for procurement and financing, early adoption is a strategic differentiator.
