Sebi Comes Out With Framework On Segregation, Monitoring Of Collateral At Client Level


As many as 94 contemporary circumstances pertaining to flouting of securities norms had been taken up for investigation by Sebi in 2020-21, marking a decline of 42 per cent from the previous monetary yr, as per the regulator’s newest annual report.

The circumstances had been associated to alleged violation of securities legislation together with market manipulation and value rigging.

“During 2020-21, 94 new cases were taken up for investigation and 140 cases completed in comparison to 161 new cases taken up and 170 cases completed in 2019-20,” the report famous.

Sebi mentioned 43.6 per cent of the entire circumstances taken up for investigation throughout 2020-21 had been associated to market manipulation and value rigging.

Besides, insider buying and selling and takeover violations accounted for 31 per cent and over 3 per cent of the entire circumstances, respectively. Over 21 per cent had been associated to different violations of securities legal guidelines.

The Securities and Exchange Board of India (Sebi) initiates investigation based mostly on reference obtained from sources reminiscent of its built-in surveillance division, different operational departments and exterior authorities businesses.

“The purpose of the investigation is to gather evidence and to identify persons/ entities behind irregularities and violations so that appropriate and suitable regulatory action can be taken, wherever required,” the regulator famous in its annual report for 2020-21.

The steps concerned throughout investigation course of embrace an evaluation of market information like order and commerce log, transaction statements and trade report.

Among others, Sebi additionally analysed financial institution data like account statements and KYC particulars, details about a agency, name information data and data obtained from market intermediaries throughout the investigation course of.

After completion of an investigation, the watchdog mentioned, penal motion was initiated wherever violations of securities legal guidelines and obligations referring to securities market had been noticed.

During 2020-21, the regulator initiated enforcement motion in 225 circumstances, whereas it disposed of 125 circumstances. At the tip of March 2021, 476 circumstances had been pending for motion.

(PTI)


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