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SEBI in News

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 (GoI), 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.
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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 in equity & 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 (RJio), 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. In an 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, which is 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 a recent circular has doubled the
foreign investment limit per mutual fund house to $600 million, from the existing $300
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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 to a
maximum of US $ 200 million per mutual fund, within the overall industry limit of US $ 1
billion.

16. SEBI has introduced ‘Flexi Cap Fund’ as a 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 as its MD and CEO with immediate effect.

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