Comments
SEBI is working towards reducing the number of days taken for listing of a company’s shares from the date of closure of its public offering — to four working days (called T+ 4) from six now.
The T+6 timeline was implemented effective January 1, 2016. Prior to this, the time taken was T +12 (effective May 3, 2010) and before that T+22.
Speaking at the International Conference on Certification & Capacity Building in Financial Markets at the NISM Campus at Patalganga in Navi Mumbai, UK Sinha, Chairman, SEBI, said: “The SEBI team is already working to bring the timeline down to T+4 days.”
Sinha said the National Institute of Securities Markets (NISM) would focus on research using the data resting in the SEBI system and the stock exchanges.
“Stock exchanges and the entire SEBI system have a lot of data which is relevant and unique to our country. Based on this data, a very high quality of advanced research is required. And one of the mandates of NISM is to develop the research capability,” Sinha said.
‘Fit & proper’ dictumThe SEBI Chairman was inaugurating the certification course offered by NISM in conjunction with global analytics and research firm Moody’s Analytics.
Speaking on the sidelines of the event, Sinha said SEBI had entrusted depositories with the responsibility of identifying ‘fit and proper’ investors in stock exchanges. According to SEBI norms, only ‘fit and proper’ investors are allowed to buy shares of stock exchanges. Both the BSE and the NSE are at various stages of bringing their initial public offerings to the market.
P-NotesSinha, however, observed that though it was impossible to ascertain the ‘fit and proper’ criteria for those who held only a few shares in an exchange, SEBI would not hesitate to investigate if it received any complaint or input in this regard even if the person held only one share.
On Participatory Notes being a potential source of black money, Sinha observed: “The special investigation team (SIT) is constantly monitoring P-Note data and is not very comfortable with the current process of its issue and administration. Further tightening of norms governing P-Notes could happen to address the concerns of the SIT.”
The SIT, which was appointed by the Supreme Court, in its report last year had observed that P-Notes were one of the many possible sources of black money.
P-Note is a financial derivative issued by FIIs to clients who wish to invest in India without directly transacting in Indian markets.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.