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Business
24 Apr 2017

SEBI to introduce new measures, to tighten grip on black-money

SEBI mulls on new guidelines and stringent measures

SEBI is aiming to take a series of stringent measures to ensure black money flow via P-Notes are eliminated. It also aims to introduce several reform measures to smoothen current hiccups.

The board is all set to convene its first meeting under the chairmanship of Ajay Tyagi, who took charge since March 1, this year.

Here are the reforms it has in mind.

In context

SEBI mulls on new guidelines and stringent measures
New measures that might be taken post meeting

Market

New measures that might be taken post meeting

SEBI in its meeting will mull on the brand-new norms to allow options trading in commodity derivative market.

It is also anticipated that favourable steps would be taken by the market regulator towards facilitating ease of registration by foreign investors.

SEBI may also take measures for an easier common licensing process for brokers looking to deal in equities and commodities.

Banks

Banks to have help in tackling bad loans

SEBI is considering a move that will help in tackling the bad loan problems that are plaguing every bank and financial institution.

SEBI is also planning to ease up the process for these institutions to acquire shares of firms by converting loans into equity, giving them a stronger hold on the financials of the firm; rather than sitting on the sidelines.

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A vigilant market watch and check on past cases

Keeping a watch

A vigilant market watch and check on past cases

The board will decide on whether graded surveillance measures should be implemented to keep a check on share price manipulation on stock markets.

During the course of the meeting, it will also take into account the progress of pending cases against corporate big-wigs and may bring an internal guidance note to tackle quasi-judicial proceedings.

Misuse

Keeping a check on participatory notes for misuse

Participatory notes (P-Notes) are now under SEBI's radar as these offshore derivative instruments are often used for bringing black money into the market from abroad.

SEBI is now mulling on stricter guidelines to plug any loopholes and make sure that the resident Indians and the subsequent NRIs, who become 'beneficiary owners' are strictly monitored in order to prevent black money flow in the market.

Financial literacy is the need of the hour, says Tyagi

Literacy

Financial literacy is the need of the hour, says Tyagi

SEBI chairman recently said that while the market has broadened its scope, common people still tend to shy away from investing in capital markets, as they are unaware of its benefits and, therefore, financial literacy is needed to encourage investment.

He said that not only it teaches about market and investment opportunities, but "financial education, also helps investors to stay away from ponzi schemes."

Details

SEBI's "daily cause list" for violators

SEBI in a recent statement had said that it will publish a "cause- list" to make the public as well as the investors aware of the steps that it is taking against entities that have violated securities' laws.

The details of every quasi-judicial hearings conducted by SEBI, pertaining to these matters, will be available for keeping a tab on various stages of the proceedings.

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