India
On 3 February 2025, the Securities and Exchange Board of India (SEBI) issued a consultation paper on a draft circular regarding the Management Statement and Auditor's / Independent Practitioner's Report on digital assurance based on information obtained from external data repositories. The Auditing and Assurance Standards Board (AASB) and Digital Accounting and Assurance Board (DAAB) of the Institute of Chartered Accountants of India (ICAI) have jointly released a Technical Guide on Digital Assurance. This provides members with guidance on using technology in audits, particularly in utilising digitally available audit evidence and information, with focus on external audit evidence and its application in audit procedures. For more information, please click here.
On 7 February 2025, SEBI issued a consultation paper on a draft circular to extend the automated implementation of trading window closure to the immediate relatives of designated persons. This aims to ease compliance and prevent inadvertent non-compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”). For more information, please click here.
On 7 February 2025, SEBI issued a consultation paper on reviewing Regulation 17(a) of the SEBI (AIF) Regulations, 2012, aimed at promoting ease of doing business. The paper seeks public comments on proposals to allow increased holdings in listed debt below a certain rating, in response to the potential reduction in investment opportunities in unlisted debt securities due to the recently introduced Regulation 62A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”). For more information, please click here.
On 11 February 2025, SEBI issued a consultation paper on the treatment of unclaimed funds and securities held by trading members. The aim is to protect investors' interests by introducing a mechanism for handling unclaimed funds and securities. For more information, please click here.
On 11 February 2025, SEBI announced that it has allowed SEBI-registered non-bank brokers access to the Negotiated Dealing System-Order Matching (NDS-OM) to participate in the government securities (G-Secs) market. These brokers can operate under a separate business unit (SBU) within their stock broking entity, as outlined by SEBI. For more information, please click here.
On 12 February 2025, SEBI introduced MITRA (Mutual Fund Investment Tracing and Retrieval Assistant), a platform developed by registrar and transfer agents (RTAs), which offers investors a searchable database of inactive and unclaimed mutual fund portfolios at the industry level. For more information, please click here.
On 12 February 2025, SEBI published guidelines on margin obligations to be provided through pledge/re-pledge in the depository system. To reduce the risk of misuse of client securities, brokers must accept collateral from clients only through a "margin pledge." The operational process for initiating, releasing and invoking the margin pledge is outlined in Annexure A of the circular. For more information, please click here.
On 12 February 2025, SEBI issued a consultation paper regarding the advance fee charged by investment advisers (IAs) and research analysts (RAs). The aim is to protect investors by limiting the period for which IAs/RAs can charge fees in advance, ensuring that investors are not bound to an IA/RA due to upfront payments. For more information, please click here.
On 13 February 2025, SEBI issued a consultation paper to seek public comments, views and suggestions on a draft circular titled Strengthening of ESG Rating Providers (ERPs). For more information, please click here.
On 14 February 2025, SEBI issued a consultation on draft circulars reviewing (a) the disclosure of financial information in offer documents/placement memorandums, and (b) continuous disclosures and compliance by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Based on input from various associations and internal deliberations, SEBI proposes revisions to Chapter 3, Chapter 4, and specific paragraphs in Annexures 5 and 6 of the master circulars. For more information, please click here.
On 14 February 2025, SEBI issued the revised timelines for issuance of Consolidated Account Statements (CAS) by depositories. SEBI has decided to rationalise the timelines for issuing CAS to improve compliance. Asset management companies (AMCs) and mutual fund RTAs will now send the monthly common PAN data to depositories by the 5th day of the month following the month-end. Depositories will then dispatch e-CAS to investors by the 12th day and physical CAS by the 15th day. For more information, please click here.
On 14 February 2025, SEBI issued Industry Standards on minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction. To help listed entities comply with requirements, the Industry Standards Forum (ISF), consisting of representatives from ASSOCHAM, CII, and FICCI, has developed industry standards for the minimum information to be provided, in consultation with SEBI and under the guidance of India’s stock exchanges. For more information, please click here.
On 20 February 2025, SEBI issued a consultation on draft circulars proposing amendments to the master circulars for InvITs and REITs dated 15 May 2024. The consultation seeks public comments, views and suggestions on the proposed changes related to REITs and InvITs. For more information, please click here.
On 21 February 2025, SEBI revised the Investor Charter for Stockbrokers to improve financial consumer protection, inclusion and literacy. This update comes considering recent developments in the securities market, including the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0. For more information, please click here.
On 25 February 2025, SEBI, in collaboration with the ISF, announced industry standards developed for effectively disclosing material events or information under Regulation 30 of the LODR Regulations. These standards will be published on the websites of the industry associations and stock exchanges involved. For more information, please click here.
On 24 February 2025, SEBI issued a consultation paper on enhancing trading convenience and strengthening risk monitoring in equity derivatives. The paper addresses the calculation of open interest in derivatives markets, which currently involves adding the open interest of futures and options (in notional terms) for each investor. For more information, please click here.
On 27 February 2025, SEBI issued new timelines for AMCs to deploy funds collected in new fund offers (NFOs) according to the scheme's asset allocation. The aim is to encourage AMCs to collect only as much funds as can be deployed within a reasonable timeframe and to prevent mis-selling of NFOs. Amendments to the SEBI (Mutual Funds) Regulations, 1996, were made and notified on 14 February 2025. For more information, please click here.
On 27 February 2025, SEBI issued a regulatory framework for specialised investment funds (SIFs) to address the evolving investment management landscape in India. The framework adopts a risk-based approach, regulating investment products based on their complexity, target investors' sophistication, and minimum investment size. For more information, please click here.
On 27 February 2025, SEBI launched Bond Central, a centralised database portal for corporate bonds in India. Developed by the Online Bond Platform Providers Association (OBPP) in collaboration with market infrastructure institutions (MIIs), the portal serves as a free, authentic information repository on corporate bonds for the public. For more information, please click here.
On 28 February 2025, SEBI issued amendments and clarifications to the circular dated 10 January 2025, regarding the revision and revamping of nomination facilities in the Indian securities market. For more information, please click here.
On 28 February 2025, SEBI extended the timeline on its consultation paper regarding the Secretarial Compliance Report, Appointment of Auditors and Related Party Transactions of a Listed Entity. Having originally asked for public comments by 28 February, the deadline for content submission has been extended to 7 March 2025. For more information, please click here.
Enforcement
On 4 February 2025, SEBI published the adjudication order relating to the matter of Junjharji Investment Private Limited (JIPL) for which it conducted a joint inspection from 9 to 13 January 2023, for the inspection period from April 2021 to December 2022. The inspection findings were communicated to JIPL on 6 March 2023, and the entity submitted its final reply on 13 March 2023. Based on the findings, SEBI initiated adjudication proceedings under Section 15-I of the SEBI Act, 1992, and Section 23-I of the Securities Contracts (Regulation) Act, 1956, for alleged legal violations. The noticee is required to pay the penalty within 45 days of receiving the order through SEBI's online payment facility. For more information, please click here.
On 6 February 2025, SEBI issued an order in the case of Brightcom Group Ltd., where accounting irregularities and disclosure violations were found, allegedly part of a scheme to defraud investors and allow promoters to sell shares at inflated prices. Noticees 1 to 5 are required to pay the penalties imposed within 45 days from receiving the order. For more information, please click here.
On 10 February 2025, SEBI issued an order in the case of Kalahridhaan Trendz Limited after receiving complaints from HDFC Bank about the company's default on credit card payments. SEBI initiated an examination to determine potential violations of its regulations. Noticees 1 to 4 have been restrained from buying, selling or dealing in securities or associating with the securities market until further notice. Noticee 1 is also prohibited from accessing the securities market in any capacity until further orders. For more information, please click here.
On 11 February 2025, SEBI issued an interim order in the case of LS Industries Limited, directing the noticees to cooperate with the investigation by providing all relevant information. The findings in the order are based on the available material. The noticees have 21 days from the receipt of the order to file their replies or objections and may request a personal hearing at a scheduled time. For more information, please click here.
On 11 February 2025, SEBI initiated adjudication proceedings against National Proxide Limited for allegedly violating clause 5 of paragraph A of Part II of the Master Circular on Scheme of Arrangement under Section 15HB of the SEBI Act. After a meeting with SEBI's Internal Committee (IC) on 28 November 2024, the company proposed revised settlement terms on 9 December 2024. The High-Powered Advisory Committee (HPAC) reviewed the terms and recommended settling the case with a payment of ₹9,42,500 (Nine Lakh Forty-Two Thousand and Five Hundred Only) by the company on 24 December 2024. For more information, please click here.
On 13 February 2025, SEBI initiated adjudication proceedings against Paytm Money Limited for alleged violations related to technical glitches, under the SEBI Adjudication Rules and SEBI Act. On 18 November 2024, HPAC reviewed the proposed settlement terms and recommended that the case be settled if Paytm Money Limited pays a settlement amount of ₹45,50,000 (Forty-Five Lakh Fifty Thousand Only). For more information, please click here.
On 14 February 2025, SEBI issued an order on the application by Digvijay Laxhamsinh Gaekwad in the matter of Religare Enterprises Limited (REL). REL is a listed core investment company (CIC) registered with the Reserve Bank of India (RBI) as a non-deposit taking Non-Banking Financial Company (NBFC). For more information, please click here.
On 17 February 2025, SEBI issued an order with Show Cause Notice to DGS Capital Management Private Limited, a registered portfolio manager. SEBI conducted an examination of the company for the period from 1 January 2023 to 31 December 2024, based on offsite inspection data. The examination revealed several non-compliances, including failure to maintain the required minimum net worth as per the SEBI (Portfolio Managers) Regulations, 2020 (“Portfolio Managers Regulations”). For more information, please click here.
On 17 February 2025, SEBI issued an interim order with Show Cause Notice in respect of Scient Capital Private Limited, a registered portfolio manager. SEBI conducted an examination of the company for the period from 1 January 2023 to 31 December 2024, based on offsite inspection data. Following the examination, SEBI sought details on the company's net worth and Principal Officer. The review revealed several non-compliances, including the failure to maintain the required minimum net worth as per the Portfolio Managers Regulations. The noticee is directed to comply with the regulatory requirement of maintaining the minimum net worth within 15 days from the date of the order. For more information, please click here.
On 20 February 2025, SEBI issued an adjudication order in the case of Arham Share Private Limited following a joint inspection with the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) on 19-20 October 2023, covering the period from 1 April 2022, to 30 September 2023. The inspection found certain non-compliances with the SEBI (Stockbrokers) Regulations, 1992 (“Stockbrokers Regulations”), SEBI Circulars and Exchange Circulars. The noticee is required to pay a penalty of ₹7,00,000 (Seven Lakh Only) within 45 days of receiving the order through SEBI’s online payment facility. For more information, please click here.
On 21 February 2025, SEBI issued an adjudication order in the case of Axis Securities Limited, a registered stockbroker. The inspection conducted by SEBI revealed certain non-compliances with the Stockbrokers Regulations, SEBI Circulars and Exchange Circulars. Axis Securities is required to pay a penalty of ₹10,00,000 (Ten Lakh Only) within 45 days of receiving the order through SEBI's online payment facility. For more information, please click here.
On 21 February 2025, SEBI investigated the trading activities of Atlantaa Limited from 1 August 2022 to 23 November 2022 to determine whether there were any violations of the SEBI Act, 1992, and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”). The applicant was alleged to have violated Clause A (2) and (5) of the Code of Conduct specified in Schedule II under regulation 9(f) of the Stockbrokers Regulations. HPAC, in its meeting on 24 December 2024, reviewed the Revised Settlement Terms proposed by the applicant and recommended a settlement amount of ₹11,37,500 (Eleven Lakh Thirty-Seven Thousand and Five Hundred Only) to resolve the pending proceedings initiated by the Show Cause Notice. For more information, please click here.
On 24 February 2025, SEBI issued an adjudication order against Nexpact Limited for non-compliance with regulations on investments in debt instruments by foreign portfolio investors (FPIs). SEBI's inspection of Orbis Financial Corporation Limited (OFCL) for FY 2021-22 found that Nexpact's investments exceeded permissible limits related to residual maturity as of 31 March 2022. As a result, SEBI imposed a penalty of ₹20,00,000 (Twenty Lakhs Only) on Nexpact Limited for violating FPI Regulations and related RBI and SEBI circulars. For more information, please click here.
On 24 February 2025, SEBI issued an adjudication order against Aviator Global Investment Fund regarding compliance with regulations on investments in debt instruments by FPIs. SEBI's inspection of OFCL for FY 2021-22 revealed that Aviator Global's investments did not comply with the permissible limits for debt securities related to residual maturity as of 31 March 2022. SEBI conducted an examination from 1 April 2018 to 30 November 2023 and found non-compliances. As a result, SEBI initiated adjudication proceedings and imposed a penalty of ₹10,00,000 (Ten Lakh Only) for violations of FPI regulations and related RBI and SEBI circulars. For more information, please click here.
On 24 February 2025, SEBI issued an adjudication order against AIRD Investment Commercial LLC regarding its compliance with regulations on investments in debt instruments by FPIs. SEBI's inspection of OFCL for FY 2021-22 revealed that AIRD Investment's investments did not comply with the permissible limits related to residual maturity for debt securities as of 31 March 2022. Based on this examination, SEBI found non-compliances and initiated adjudication proceedings under Section 15HB of the SEBI Act. As a result, SEBI imposed a penalty of ₹20,00,000 (Twenty Lakh Only) on the noticee. For more information, please click here.
On 27 February 2025, SEBI received complaints between July and September 2022 alleging price manipulation and offloading of shares in Sadhna Broadcast Limited. Upon examination, SEBI found that certain net sellers of the company's shares were linked to creators of YouTube channels that posted misleading content and unrealistic target prices to influence and induce public investors. Based on this, SEBI passed an interim order on 2 March 2023. A notice of demand was issued to the applicant on 6 February 2025 for a settlement amount of ₹72,80,000 (Seventy-Two Lakh Eighty Thousand Only) and a disgorgement amount of ₹1,90,61,362 (One Crore Ninety Lakh Sixty-One Thousand Three Hundred and Sixty-Two Only). In response, the applicant remitted the amounts on 19 February 2025 and the receipt was confirmed. For more information, please click here.
On 27 February 2025, SEBI issued an adjudication order in the case of First Overseas Capital Limited, a registered merchant banker, following an inspection for the period from 1 April 2021 to 31 March 2022. The Show Cause Notice dated 22 November 2023 highlighted several issues, including non-submission of half-yearly reports, failure to conduct independent due diligence on three IPOs, furnishing false information, concealing information during inspection and in replies to the public information officer (PIO), non-disclosure of an open offer, and non-submission of quarterly reports. As a result, SEBI imposed a penalty of ₹10,00,000 (Ten Lakh Only) on the noticee. For more information, please click here.
On 28 February 2025, SEBI issued an adjudication order in the case of KellyGamma Fund, a Category III alternative investment fund (AIF) registered with SEBI. SEBI conducted an examination for the period from 1 April 2019 to 30 March 2023, to investigate suspected violations of the SEBI (Alternative Investment Funds) Regulations, 2012, and related circulars. The investigation focused on the private placement memorandum (PPM) audit reports filed by the fund for FY 2019-20 to FY 2022-23. The findings revealed violations of regulatory provisions. As a result, Noticee 1 (KellyGamma Fund) is required to pay a penalty of ₹5,00,000 (Five Lakh Only), while noticees 2 to 4 must pay a penalty of ₹1,00,000 (One Lakh Only). For more information, please click here.
On 28 February 2025, SEBI initiated adjudication proceedings against Nitco Limited for failing to comply with prescribed accounting standards while assessing impairment and lifetime expected credit losses on outstanding loans. Additionally, Nitco allegedly did not disclose the outstanding loan balances to related parties as required under related party disclosures. SEBI’s IC recommended ₹49,40,000 (Forty-Nine Lakh Forty Thousand Only) as the indicative amount for Nitco Limited and ₹68,25,000 (Sixty-Eight Lakh Twenty-Five Thousand Only) by Mr Vivek Talwar. For more information, please click here.
On 28 February 2025, SEBI initiated an adjudication order regarding the trading activities of certain entities in the shares of Kavit Industries Limited (KIL), a public company listed on the BSE. An investigation revealed that Mr Vijay Pujara (Noticee 1), Mr Ajay Pujara (Noticee 2) and Mr Natvarbhai Vegda (Noticee 3) were operating accounts of 20 entities and involved in creating artificial trading volume through synchronised, circular, and reversal trades in KIL's scrip. The noticees are accused of generating a false and misleading appearance of trading in KIL's shares, violating provisions of the SEBI Act and the PFUTP Regulations. Mr Vijay Pujara will pay a penalty of ₹10,00,000 (Ten Lakh Only), Mr Ajay Pujara ₹6,00,000 (Six Lakh Only), and Mr Natvarbhai Vegda ₹5,00,000 (Five Lakh Only). For more information, please click here.
On 28 February 2025, SEBI initiated an adjudication order against Alankit Assignments Limited, a registered RTA. Following an investigation, SEBI found that the company had allegedly violated provisions. As a result, a penalty of ₹5,00,000 (Five Lakh Only) was imposed on the company. For more information, please click here.
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.