Professional Documents
Culture Documents
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SEBI allows Bandhan Bank to offload promoters’ stake early
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More about the Issue
• As per RBI’s guidelines for licensing of new banks in the private sector,
when a non-banking financial company launches a private bank
through a holding company,
• it must pare down its promoter holding to 40 per cent within three
years of starting operations.
• Bandhan, which started banking operations in August 2015, was to
trim its promoter’s stake from over 82 per cent to below 40 per cent
by August 2018,
• but couldn’t, thanks to Sebi’s one-year lock-in period.
• With Sebi now giving the relaxation, it ends uncertainty surrounding
the bank.
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SEBI nod to Oman Oil Futures On BSE
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SEBI further improves transparency in MFs
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Direct vs. Regular plan
• A Regular Plan is one in which the Mutual
Fund Company pays your broker back a
hidden % commission every quarter.
• This commission comes out of your
investments.
• But when you buy a Direct Plan instead, no
commissions are paid to anyone.
• Direct plans in mutual funds are good for
investors who wish to invest in mutual fund
schemes by directly dealing with AMC
without intermediary / mutual fund
brokers.
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More about reforms
• Front-loading of commissions will now be allowed only in case of
systematic investment plans (SIP)
• In case an investor does not stay the full course of the SIP, the
commission will be recovered from distributors on a pro-rata basis.
• Additional commission paid to distributors for investors from B30
(beyond top 30) cities shall be payable for investments only from
individual investors and
• this commission shall be payable in a trail mode only.
• Asset managers are also required to disclose on their Web sites
scheme returns versus benchmark returns in CAGR terms for various
periods, namely 1 year, 3 year, 5 year, 10 year and since inception.
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Sebi proposes relaxed norms for startup listing
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Institutional Trading Platform (ITP)
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More about Reforms
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NPA crisis an opportunity to develop bond market: Sebi
• Sebi chairman Ajay Tyagi has said there is an
immense opportunity for development of bond
market in the backdrop of the NPA crisis in
banking sector.
• also said the corporate bond market could get a
boost if sectoral regulators of pension funds,
provident funds and insurance firms could allow
their regulated entities higher exposure in the In the medium to long
segment. term, there seems to be
no other option but to
• SEBI is also working on operationalising the shift from bank
2018-19 budget announcement which mandates financing of projects to
large corporates to raise 25 per cent of their bond funding.
financing needs from the bond market.
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Insiders using 'front entities' will be subject to more scrutiny by Sebi
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T K Vishwanathan Committee on fair market conduct
• The proposal to do background checks are based on the
recommendations of a high-level committee led by former law
secretary T K Vishwanathan on fair market conduct, aimed to detect,
prevent and punish such market conduct that leads to market abuse
and manipulation.
• The regulator is also planning to widen the ambit of “deemed
fraudulent activities” under Sebi’s Prohibition of Fraudulent and
Unfair Trade Practices (PFUTP) norms.
• This will include misleading information on digital media, front
running by non-intermediaries, mis-selling of securities, mis-
utilisation of client account and diversion of client funds and so on.
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Affordability Index
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Single investment regime in the works for NRIs
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HR Khan Panel on FPI Regulations
• Sebi recently eased norms for NRIs last month based on the Khan
panel’s recommendations.
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MCQ’s
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1. SEBI regulation mandates a ______ lock-in period for promoter shareholdings after listing on exchanges.
a) One-year
b) Two-year
c) Three-year
d) None of the above
2. SEBI recently approved the launch of first Oman Crude Oil Futures contract on __________.
a) BSE
b) NSE
c) MCX
d) NCDEX
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3. According to SEBI’s recent regulations, all Mutual Fund houses will have to pay commission via:
a) Upfront model
b) Full-trail model
c) Either of the above
d) None of the above
4. Which index is being planned by SEBI on the lines of CIBIL to decide whether an individual is fit to deal in
the securities market?
a) Credibility Index
b) Affordability Index
c) Worth Index
d) None of the above
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ANSWERS
1. A
2. A
3. B
4. B
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SEBI Current Affairs - Oct. 2018
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Thank You! Happy Learning!
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