Demat allotment of preferential shares must for foreign investors: SEBI
PrintListen to this Article
To ensure more transparency in capital market, Sebi said that mandatory allotment of preferential shares through demat accounts will also be applicable to overseas investors.
The move is part of Sebi's effort to check the flow of illicit funds in the issuance of shares to investors on preferential basis.
The Securities and Exchange Board of India (Sebi), in August last year, has notified the new norms that make it mandatory for payments and allotments to be done directly through the beneficiaries' accounts.
As per the regulation, the payment for preferential shares would need to be made only from the own bank accounts of the buyers while it would be necessary to carry out such allotments through demat accounts.
Sebi on its website today clarified that the new regulations are applicable to overseas investors as well.
The requirement of allotment of preferential shares in dematerialised form is applicable to those allottees as well who are overseas investors.
It also said that new regulation would also be applicable to the instances of conversion of loan provided only if the loan has been received from the bank account of the allottee.
There have been concerns that promoters might use the preferential allotment route through front entities and thus adversely impact the interest of public shareholders.
In the last four years, Indian companies have raised over Rs 65,000 crore through preference share issues. (Indian Express)
Category : SEBI | Comments : 0 | Hits : 261
A financial influencer, also known as finfluencer, who was also involved in imparting training related to stock market trading has been asked to part with a little over ?12 crore, which it made unlawfully. The funds are to be credited or deposited by Ravindra Balu Bharti into an interest-bearing escrow account that has been set up in a nationalised bank especially for that purpose. The regulator stated in an order that the escrow account(s) would establish a lien in favour of SEBI and that th...
The Securities and Exchange Board of India (Sebi), the country's market regulator, has announced the launch of an optional same-day (T+0) settlement cycle for a select group of 25 stocks starting March 28, as per a circular published on its website last Thursday. This new initiative, referred to as the beta version, is set to coexist with the traditional next-day (T+1) settlement cycle, where trades are settled within 24 hours of execution. The T+0 settlement option will be available for ...
Capital markets regulator Sebi on Thursday slapped a fine of Rs 48 lakh on eight entities, including promoters of United Polyfab Gujarat Ltd (UPGL), for manipulating the share prices of the company. These entities have to pay the penalty jointly and severally within 45 days, as per an order. The order came after Sebi conducted an investigation of UPGL and trading by certain entities in the scrip of the company, to ascertain whether there was any violation of the provisions of the PFUTP (Pr...
Sebi alerts investors about the growing trend of unregistered entities falsely claiming Sebi registration and offering unrealistic returns. Investors are advised to verify the registration status and consider the inherent risks associated with high-return investments. The Securities and Exchange Board of India (Sebi) has issued a warning to investors, cautioning them against investing money with unregistered entities that promise assured or exceptionally high returns on investments. This advi...
Capital markets regulator Sebi on Thursday issued orders of action against 15 guest experts of the Zee Business channel for unlawful trading. The entities made unlawful gains to the tune of Rs. 7.41 crore from such trades and the profit was shared with guest experts as per prior understanding, Sebi noted. The market regulator also asked the guest experts to pay Rs.7.41 crore. The guest experts appeared on the Zee Business channel from 1 February 2022 and 31 December 2022. "The facts of t...
Comments