SEBI in News (JULY - DEC) A ~, BY: VICTORY ARENA 4 TELEGRAM CHANNEL: Search @VICTORY_ARENA in search box VI >TO RY ARENA 1, The Securities and Exchange Board of India (SEBI) has re-constituted its advisory committee on mutual funds under chairmanship of Usha Thorat. 2. SEBI has extended the date for implementing norms pertaining to power of attorney (POA) given by clients to trading members or clearing members till August 1, 2020 from June 1, 2020. 3. SEBI has re-constituted its commodity derivatives advisory committee that examines issues related to contract designs and new products in the segment and advises on matters related to delivery mechanism and warehouses. SEBI has appointed Ashok Dalwani as the chairman and Aliasgar S Mithwani as Secretary of the 17-member committee. 4. The board of SEBI has amended the Securities and Exchange Board of India - Substantial Acquisition of Shares and Takeovers Regulations, 2011 (SEBI-SAST) to enhance the acquisition limit for promoters of a listed company. Section 30 of SEBI Act, 1992 vests such power to SEBI, which is about “Power to make regulations’. 5. An order of Department of Personnel Training informed that the Appointments Committee of the Cabinet (ACC), Government of India (Gol), has approved another extension of Ajay Tyagi’s term as Chairman of Securities and Exchange Board of India (SEBI) for 18 months, with effect from (w.e.f) 01.09.2020 up to 28.02.2022 or until further orders, whichever is earlier. 6. Security and Exchange Board of India (SEBI) has proposed to revamp its IT infrastructure network and communication systems. Also, SEBI has proposed to have a centralised control over its network. In this regard, SEBI has shortlisted 8 companies which includes Bharti Airtel, Wipro, TCS, HP, IBM, NTT India, Orange Business Services India Technology and Sify Technologies. 7. The markets regulator SEBI has imposed a fine of Rs.1 Crore on Rana Kapoor. He is the former MD& CEO of Yes Bank. He has been penalized for non-disclosure of encumbrance on the bank's shares. The issue pertains to a transaction of Morgan Credits Pvt. Ltd - an unlisted promoter entity of Yes Bank, which raised a sum of Rs. 950 Crore from Reliance Mutual Fund using Zero Coupon Non-Convertible Debentures. 8. SEBI has publicized a partially modified portfolio structure for multicap mutual funds category through a circular stating minimum investment in equity & equity related instruments and definition of large-cap, mid-cap and small-cap. SEBI has decided to partially modified portfolio structure for multi-cap mutual funds category. The Minimum investment in equity & equity related instruments - 75% of total assets in the following manner: Minimum investment in equity & equity related instruments of large-cap companies - 25% of total assets. Minimum investment in equity & equity related instruments of mid cap companies - 25% of total assets. Minimum investment inequity & equity related instruments of small cap companies - 25% of total assets This decision has been taken for decreasing the risk of being overweight on any one kind of market-cap firm. The definition of large-cap, mid-cap and small-cap as follows: Large Cap: 1st -100th company in terms of full market capitalization Mid Cap: 101st 250th company in terms of full market capitalization Small Cap: 251st company ‘onwards in terms of full market capitalization.9. The Department of Telecommunications' (DoT) and The Securities and Exchange Board of India (with certain clauses) has given approval to Reliance Jio Infocomm (Rio), to sell units worth Rs. 25,215 Crore in Tower Infrastructure Trust to Brookfield Infrastructure Partners L.P. 10. SEBI has set-up a technical committee on the social stock exchange under chairmanship of Harsh Kumar Bhanwala. 11, SEBI has constituted the Technical Group under the Chairmanship of Harsh Kumar Bhanwala, former Chairman of NABARD to suggest a regulatory framework for setting up Social Stock Exchange, which may include both for-profit and not-for-profit Organisation. It will also develop a framework for prescribing disclosure requirements. 12. Madhabi Puri Buch is the first woman whole time member (WTM) of SEBI. 13. Inan effort to set up Data Culture through Data Democratizationin the Indian securities market, The Securities and Exchange Board of India (SEBI) has constituted a Market Data Advisory Committee (MADC), Standing Committee, headed by Madhabi Puri Buch. 14, SEBI has announced detailed guidelines for product labelling in mutual funds. Earlier, there were five categories to measure the level of risks in mutual fund schemes. Now SEBI, whichis the regulator, has introduced one more category known as ‘very high risk’. These new guidelines shall be in force with effect from January 1, 2021. 15. Securities and Exchange Board of India (SEBI) in arecent circular has doubled the foreign investment limit per mutual fund house to $600 million, from the existing $300 million. $50 million would be reserved for each mutual fund individually, within the overall industry limit of US $ 7 billion. Mutual Funds can invest in overseas Exchange Traded Fund (ETFs) subject toamaximum of US $200 million per mutual fund, within the overall industry limit of US $ 1 billion. 16. SEBI has introduced ‘Flexi Cap Fund’ asa New Category under Equity Schemes to give more flexibility to the mutual funds. The objective of this is to protect the interests of investors in securities, to promote growth and to regulate the securities market. 17. SEBI has also made it mandatory that all the open ended debt schemes, except Overnight Fund, Liquid Fund, Gilt Fund and Gilt Fund with 10 year constant duration to hold at least 10% of their net assets in liquid assets. 18. Market watchdog Securities and Exchange Board of India (SEBI) has set up a specialised department Corporation Finance Investigation Department (CFID) to tackle initial public offering (IPO) proceed fraud, diversion of funds, bank loans and resources by company promoters. 19, Prasanth Prabhakaran, joint MD and CEO of YES Securities (India) Limited, wholly owned subsidiary of YES Bank, was elevated ( its MD and CEO with immediate effect. ARENA