Sebi conducted a probe and found that entities had access to UPSI and traded in the scrips of the firm during the May 21-July 27, 2016 (UPSI period).
By indulging in such trading activities, the entities have violated the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
The order, which also bars the company, Sahara India Commercial Corporation Ltd (SICCL), as well as its then directors and associated entities from the markets and from associating with any public entity, relates to collecting funds between 1998 and 2009 from nearly 2 crore investors through issuance of certain bonds.
According to the latest data available with the markets regulator Sebi and depositories, fund managers lapped up shares to the tune of Rs 11,638 crore last month. On the other hand, FPIs pulled out Rs 10,825 crore from equities.
In a statement, SBI Chairman Rajnish Kumar said there was no concern on liquidity of NBFCs in view of their liquid cash position and availability of committed lines.
The proposals were cleared by the board of the Securities and Exchange Board of India (SEBI) at its meeting In Mumbai.
Besides, the panel has suggested giving six months to FPIs for compliance to new rules, after they are finalised, while the non-compliant investors can be given further 180 days to wind down their existing positions.
"A penalty of Rs 5 lakh is imposed jointly and severally" on Vital Communications Ltd (VCL) by Sebi for failing to provide information on allotment of shares and there by violating Sebi norms.
Sebi said that Tower Infotech had raised nearly Rs 46 crore from 49,489 investors, while Agragami garnered over Rs 3.45 crore.
Sebi Chairman Ajay Tyagi told reporters here after a board meeting that as per the amendments "aimed at simplifying language and removing redundancies", the regulator has decided to reduce the time to announce the price band of an IPO to two days from the earlier five-day limit.
Through an interim order in January 2017, the regulator had barred Mallya and six former officials of United Spirits from the securities markets in the case related to illegal fund diversions.
According to the ICICI Bank, the SEBI has sought response on alleged non-compliance of the “erstwhile ‘Listing Agreement’ and the ‘Listing Obligations and Disclosure Requirements) Regulations, 2015’”.
"We will come out with regulations on this by September of this year. Obviously, those regulations will be light touch regulations because it is to encourage corporates to move towards bond market," SEBI Chief said.
Between February 1-9, the BSE Sensex had shed around 1,900 points. The other index, NSE Nifty shed over 500 points during the same period.
The move is likely to have an impact on global rating agencies like S&P, Moody's and Fitch which have significant holdings in domestic agencies besides their direct presence.
Sebi chairman Ajay Tyagi said it’s clear from the instances involving recent information leaks on WhatsApp that the details were leaked by companies themselves.
Sebi Chairman Ajay Tyagi said the convergence will be effective from October 2018 and will help in cross-listing and provide investors with access to various asset classes.
Tyagi further said Sebi would have to regulate Bitcoin if these get classified as a commodity and are traded as commodity derivatives.
Financial sector watchdogs and government agencies will soon get into a huddle to prepare a framework to safeguard gullible investors and clamp down on fraudsters, PTI reported.
The SEBI has already reduced the listing time from the seven days in the past to six days after the close of the bidding. This still blocks the fund of an investor if she/he could not get the entire subscription locked in for those many days time.
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