Regulations
Companies must disclose price-sensitive info to bourses first: SEBI

The market regulator said it noticed certain listed companies giving monthly disclosure of their sales,  turnover and production figures to their respective trade bodies and the same is not disclosed to the bourses

Mumbai: Listed companies will now have to necessarily disclose all price-sensitive information, including monthly sales figures, to bourses first, market regulator Securities and Exchange Board of India (SEBI) said, reports PTI.

 

"...all the events or material information which will have a bearing on the performance/ operations of the company as well as price sensitive information shall be first disseminated to the bourse as required under Clause 36 of the Listing Agreement," SEBI said in a circular.

 

The regulator said it has noticed certain listed companies giving monthly disclosure of their sales / turnover / production figures to their respective trade bodies and the same is not disclosed to the bourses.

 

The information considered to be 'price sensitive' as per the guidelines include, any change in nature of business, disruptions due to natural calamity, commencement of commercial operations, developments arising out of change in regulatory framework, litigation or disputes having a material impact and revision in credit ratings.

 

SEBI also advised stock exchanges to take into account the requirements of the circular and bring the same to the notice of the listed companies.

 

As per the clause 36 of the Agreement, listed firms are required to the concerned bourses immediately of events such as strikes, lock outs, closure on account of power cuts and all events which would have a bearing on the performance as well as prices. This has to be done both at the time of occurrence of the event and subsequently after the cessation of the event.

 

The announcements are necessary in order to enable the security holders and the public to "appraise the position of the the company and to avoid the establishment of a false market in its securities."

 

"In addition, the issuer will furnish to exchange on request such information concerning the Issuer as the exchange may reasonably require," the Listing Agreement said.

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SEBI ask banks to use their account in other banks for ASBA

SEBI said bank should use the separate account solely for the purpose of making application in public issues and clear demarcated funds should be available in such account for ASBA applications


Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has asked the banks providing the application supported by blocked amount (ASBA) facility for public offers to use their accounts in other registered banks while making their own applications, reports PTI.

 

The ASBA facility allows the application money to remain blocked in the applicant's bank account till the time the shares are actually allotted in the public offers and the banks seeking to provide these facilities need to first get registered with SEBI.

 

In a fresh circular issued in this regard, SEBI said it has come across reports about certain banks/merchant bankers of misinterpreting certain provisions of guidelines for using ASBA facility and applications by banks have been accepted using an account held with the applicant bank itself.

 

"...it is clarified that for making applications by banks on own account using ASBA facility, self certified syndicate banks (SCSBs) should have a separate account in own name with any other SEBI registered SCSB/s," SEBI said.

 

"Such account should be used solely for the purpose of making application in public issues and clear demarcated funds should be available in such account for ASBA applications," it added.

 

Under ASBA mechanism, investors can bid for shares while the money remains in his/her bank account and gets debited only after allotment of the shares.

 

The facility eliminates any delays related to refunds for the un-allotted shares. Initially, the facility was offered to retail investors only and was given to other investors in 2009.

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Reliance Industries approaches Tribunal against SEBI

In the case involving sale of shares of Reliance Petroleum, SEBI is said to have been investigating for a long time the alleged violation of insider trading regulations by RIL

Mumbai: Reliance Industries Ltd (RIL) has approached the Securities Appellate Tribunal (SAT) against market regulator Securities and Exchange Board of India (SEBI) which has issued show-cause notices to the corporate giant with regard to certain alleged irregularities in its share dealings, reports PTI.

 

RIL's appeal against SEBI was earlier scheduled by SAT for admission on Friday, but the Tribunal has adjourned the hearing to 11th January.

 

While details of RIL's appeal before the SAT could not be immediately obtained, SEBI has previously issued show-cause notices to the company in cases involving sale of shares of its erstwhile subsidiary Reliance Petroleum Ltd (RPL) and allotment of shares to certain firms against warrants linked to privately placed debentures issued by RIL.

 

RIL has already replied to SEBI notices in these cases.

 

In the case involving sale of shares of RPL, SEBI is said to have been investigating for a long time the alleged violation of insider trading regulations by RIL.

 

RPL used to be a separately-listed company, but it was later acquired by RIL and the merger process was also completed way back in 2009.

 

RIL has previously sought to settle the case through SEBI's consent mechanism, which allows for settlement of cases without admission or denial of guilt after payment of certain charges and disgorgement of ill-gotten gains, if any.

 

However, SEBI has rejected RIL's consent pleas on more than one occasion, terming the proposed payments as too less and on other grounds.

 

As per the company's annual report for the fiscal year 2011-12, SEBI had issued it show-cause notices in connection with the sale of shares of erstwhile RPL and the allotment of RIL shares to certain companies against detachable warrants attached to privately placed debentures issued by it.

 

"The company has submitted its reply to the same," RIL had said in the annual report.

 

RIL is currently buying back shares under a programme launched in February last year and has repurchased shares over Rs3,800 crore from public shareholders since then -- achieving 37% of the targeted amount of Rs10,440 crore.

 

The buyback programme, already the biggest buy-back by an Indian company, would end on 19 January 2013.

 

Yesterday, SEBI proposed significant changes to existing framework for buyback of shares by companies from open market, including lowering the process for its completion to three months and a minimum repurchase of 50% of the target.

 

The proposals have been made in a discussion paper floated by the market regulator and a final decision would taken after taking into account comments from the public.

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