SEBI and Capital Markets - 2014

 In what may have been a very busy calendar 2014 for the securities market regulator, the Securities and Exchange Board of India (SEBI) introduced a slew of measures to enhance the working of capital markets, protect investors, and even invoked physical penalty by way of imprisonment.

The prominent rules & regulations introduced by SEBI include Prevention of Insider Trading & regulations to determine the workings of research analysts (Research Analysts) Regulations.

Moreover, SEBI also created a new class of foreign investors (foreign portfolio investors) to streamline the framework of overseas funds.


The Securities Law (Amendment) was passed through an ordinance by both houses of the Parliament in early August, 2014 granting investigative & enforcement powers to curb collective investment schemes & ensure various methods to recover funds.

“SEBI has pushed more enforcement than any other regulator in the world,” said Mr. Sandeep Parekh, former ED, SEBI and the founder of Finsec Law Advisors.

SEBI was also empowered with search & seizure operations during investigations, allowing the regulator to issue warrants at the time of investigation, while pursuing investor protection.

2014: SEBI UPS THE ANTE..!

January 2014

* Foreign Portfolio Investors Regulations
* Settlement of Administrative and Civil Proceedings Regulations
* Procedure for Search and Seizure Regulations
*  Collective Investment Schemes (CIS Amendment) Regulations
*  Investor Protection and Education fund (IPEF Amendment) Regulations
*  Issue and Listing of Debt Securities (Amendment) Regulations

February 2014

*  Issue of Capital and Disclosure Requirements (Amendment) Regulations, 2014
*  New Corporate Governance Norms
*  Mutual Fund Policy, recommending tax exemptions to investments in long-term MF products

March 2014

*  KYC Issue of Capital and Disclosure Requirements (Amendment) Regulations
*  Recommendations of public sector banks as ‘public shareholders’ in stock exchanges

April 2014

*  Aligns Clause 49 and 35B of Listing Agreement with Companies Act 2013.
*  Highlights role of independent directors, revises clause pertaining to related party transactions

May 2014

* Payment of Fees (Amendment) Regulations
*  Mutual Funds (Amendment) Regulations
*  Approach paper on draft (Listing Obligations and Disclosure Requirements) Regulations
*  Released discussion paper to review delisting regulations in India

June 2014

*  Extends 25% minimum public shareholding to public sector companies
*  Extends use of OFS mechanism to top 200 companies versus 100 earlier
*  Corrects anomaly in IPO of companies with less than R4,000 crore market cap
*  Allows sharing of KYC details with other financial institutions

August 2014

*  Securities Laws (Amendment) Act 2014
*  New Changes to Related Party Transaction Norms
*  Issue of Capital and Disclosure Requirements (Second Amendment) Regulations

September 2014

*  Research Analysts Regulations
*  Real Estate Investment Trusts (REITs) Regulations
(REITs) Infrastructure Investment Trusts Regulations

October 2014

* Share Based Employee Benefits Regulations
*  Stock Brokers and Sub-brokers (Amendment) Regulations

November 2014

*  Prevention of Insider Trading
*  Delisting of Equity Shares (Amendment) Regulations
*  Converts Listing Agreements into Regulations
*  Mutual Funds (Amendment) Regulations
*  Approves single registration to Depository Participants (DPs)
*  Proposes e-IPO mechanism

December 2014
*  Sends one person to jail for default of payment
*  Bans 260 entities from securities market for suspected money laundering


Src: FE Bureau 
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