Pages

Wednesday, August 21, 2019

SEBI can declare a reward of up to one crore rupees on reporting of insider trading

sebi
New Delhi: SEBI is preparing to take tough steps to protect the interests of investors. This includes a more robust system to punish those who violate the rules. SEBI is the regulator of the capital market.SEBI is looking at measures like keeping a close watch on credit rating agencies and giving rewards of up to one crore rupees to those giving information about insider trading in companies. The Securities and Exchange Board of India (SEBI) is also planning to simplify the rules in the case of 'Muni Bonds' issued by municipal corporations to raise funds. 


They will also be allowed to raise money from bonds
The regulator is now considering allowing other entities involved in the development of smart cities to issue such bonds. With this, other enterprises or bodies working like municipal bodies will also be able to raise funds by issuing 'Municipal Bonds'. They can be listed on the stock exchanges. 



Officials said that the SEBI Board of Directors will meet in Mumbai on Wednesday. In this meeting, all issues will be discussed and a decision will be taken. Discussions about mutual funds and startup's listing platform can also be held in the meeting. SEBI is now going to tighten its rules about banks not informing their customers about information citing 'customer secrecy' and not getting information like failing to pay their debts. It can be made mandatory to make such information available to credit rating agencies. 

Ratings agencies will be tightened 


Such a case of IL&FS has come to light. The company could not repay the loan of crores of rupees. The rating agencies did not provide any such information. In this case, the rating agencies have also come under suspicion why they did not disclose the potential risk. SEBI now proposes to amend its rules regarding rating agencies. These agencies will now have to ensure that before giving ratings to any listed or unlisted companies, they will get clear information about their current and future loans. 

SEBI has also proposed to give up to one crore rupees to those who give information about the insider trading. A separate hotline will also be maintained to provide confidential information. An apology or settlement agreement for minor mistakes can also be made if we cooperate in the investigation. 

These proposals will also be considered
There are many other proposals in the Sebi agenda. In the case of mutual funds, SEBI wants the funds to invest their entire investments in equity and debt securities of listed companies or listed companies. 








No comments:

Post a Comment