We all have come across videos or shorts made by creators giving financial advice or opinions to the viewers for investment and saving purposes. Well, the creators may face stricter SEBI scrutiny if they are advertising about SEBI-regulated entities, as per the new draft proposal released by the Securities and Exchange Board of India (SEBI).

Just a few days back, SEBI proposed the Common Advertisement Code, as per which creators with more than 5 lakh followers on a single platform will be classified as “celebrities” when endorsing SEBI-regulated entities.

As per the consultation paper on the Common Advertisement Code, a person counts as a celebrity if they fall into one of these categories:

• Featured in the top 50 of any celebrity index published by a national publication where the index is current or at most a year old.
• Played a lead role in any mainstream film, TV serial, TV show, or OTT web series
• An influencer with more than 5 lakh followers or subscribers on any single social media platform such as YouTube, Instagram, Facebook or X
• A sportsperson who has represented the national team or competed internationally in sports events
• Hosted or anchored a TV programme for at least one season or 10 episodes
• Won or finished up as a runner-up in a popular TV or OTT show, or advanced through its qualifying rounds
• A virtual character
• Anyone the Board or supervisory body considers capable of influencing viewers of an ad.

With this ‘celebrity” tag comes stricter rules and more scrutiny for the creators:

• Creators can promote a brand but cannot make recommendations or promotional pitches for specific financial products.
• Celebrity-tagged ads still require SEBI’s prior clearance before going live. The regulated entities are also required to upload the advertisement to a centralised portal within 24 hours of publication

The code also bans dark patterns that trick users into choices they do not intend, like false urgency, forced action or subscription traps. Advertisements would be barred from carrying guaranteed-return claims, deceptive comparisons, testimonials and incentives linked to account opening/reactivation or increased trading activity.

The proposal further states that an entity can advertise a rating or ranking only if a recognised Past Risk and Return Verification Agency (PaRRVA) issues it. An ad citing a specific security or scheme as an example must place the disclaimer on the same page or in the same video frame. An entity must act within 7 days against any third party that advertises without consent and disclose the incident on its website.

SEBI has invited public comments on this draft framework till 14^th July.

Via 1, 2

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DigiLocker- a digital wallet by the Govt of India that lets you store and access e-docs like Aadhaar, PAN, DL, birth/death certificates, insurance, bank & NPS statements anytime, anywhere. Few days back, SEBI issued a circular that was titled “Harnessing DigiLocker as a Digital Public Infrastructure for Reducing Unclaimed Assets in the Indian Securities Market.” SEBI circular will come into effect from April 01, 2025.

This circular addressed the issue of unclaimed financial assets. This partnership between SEBI and DigiLocker enabled investors to now store and access information on their demat and mutual fund holdings through DigiLocker.

Big update on DigiLocker

• DigiLocker users can now store and access their statement of holdings for shares and mutual funds units from their demat accounts, along with their Consolidated Account Statement (CAS). This expands existing DigiLocker services, which already include bank account statements, insurance policy certificates and NPS account statements.
• Users can appoint Data Access Nominees within the DigiLocker application. In the event of user’s demise, these nominees will be granted read only access to the DigiLocker account, ensuring that essential financial info is easily accessible to legal heirs. You must provide nominees mobile number and email while adding them.
• Upon notification of the user’s demise by KYC Registration Agencies (KRAs)- which are registered with and regulated by SEBI, the DigiLocker system will automatically notify the Data Access Nominees. This access is expected to facilitate the initiation of the transmission process with relevant financial institutions.

How are the nominees informed about the user’s demise?

1. DigiLocker retrieves info from the death register or KYC registration agencies.
2. It automatically notifies nominees via SMS & email.
3. Nominees can verify their identity and access the deceased’s financial information through their DigiLocker account

If the DigiLocker nominee is also the nominee in the investor’s account/folio, they can directly initiate the transmission process. Otherwise they can share the information with the joint holder nominee, or legal heir to let them start the transmission process. Also the DigiLocker nominee cannot replace the nominee set by the user for mutual fund folios or demat account.

In case of a joint account, the surviving joint holder will have the right over the deceased user’s assets while the DigiLocker nominee is expected to share the information with the joint holder or legal heir. To be clear nominee will not be the owner of assets but nomination will simply ensure a smooth transmission. The final ownership is determined by the will, or, in its absence, by succession laws.

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On Tuesday, Capital market company, SEBI (Securities and Exchange Board of India) declared that Pramod Rao has taken charge as company’s executive director.

SEBI said in a statement that Rao will be handling the department of debt and hybrid securities as well as the enquiry and adjudication department. He took the charge of the executive director on Juy 15.

Prior to the new post, he held the position of Group General Counsel at ICICI Bank and provided strategic oversight to the legal function of the ICICI group.

According to BusinessToday.In, Earlier he served as a member of the board of directors of ICICI Securities, ICICI Prudential Trust and ICICI Trusteeship Services.

He has also served as General Counsel for the Citi India cluster and was in charge for the legal, secretarial and security and investigative services within Citi India.

“He also worked with IndusLaw, a law firm, as a resident partner, overseeing its banking and finance practice. He has also participated and contributed to various legal and regulatory reform initiatives of the government, regulators and industry forums. He holds a degree of B.A LL.B. (Hons) from National Law School of India University, Bangalore,” a source as per BusinessToday.In.

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The Securities and Exchange Board of India (SEBI) has filed a police report, stating that unidentified individuals sent 34 emails using 11 of its employees work-related email addresses. Officials at SEBI, however, said that no sensitive data was taken.

Abhijit Chandrakant, the ISD manager, filed a complaint with Varunkumar Kishan Gopal, an assistant manager in the IT division of SEBI’s Bandra-Kurla Complex (BKC) headquarters, on May 23.

Chandrakant believed that someone had gained access to his work email account and was using it to send emails. Gopal discovered that 11 officials’ email accounts had been compromised when he accessed the SEBI disaster recovery site.

According to a police officer, “up to 34 emails were sent to various accounts from these official IDs.”

The accused allegedly stole certain private information about the email recipients using the official SEBI accounts, according to police suspicions.

“The receivers emails contained links. Once the recipients clicked the link, the accused might have been able to access the data,” Gopal added.

According to officials, several mitigating steps were taken right away, including alerting CERT-IN and upgrading the system’s necessary security setup.

It was only a little event. CERT-IN has been fully informed. Nothing private was lost. According to SEBI’s chief general manager Hariharan N, the issue’s main cause has been identified and corrected.

On Friday, a case was filed at the BKC police station under the provisions of sections 419 of the Indian Penal Code (penalty for cheating by personation), 43 A (compensation for failure to preserve data), and 66C (punishment for identity theft).

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Market regulator Sebi on Thursday levied a penalty of Rs 5 lakh on Axis Bank for flouting merchant banking regulations.  Securities and Exchange Board of India is the regulatory body for the securities and commodity market in India. During this period, Axis Bank acted as a merchant bank for 22 debt issues launched by various companies. It had subscribed to securities in nine such issuances but failed to make requisite disclosure. Axis Bank has 45 days to pay the amount to SEBI.

The market regulator explained that it had conducted an examination into the Debt Capital Market operations of Axis Bank during the period August 2016 to August 2019. During the course of examination, it was observed that the bank had failed to submit the details of the transactions relating to its acquisition of the securities to SEBI in respect to 9 public issuances of debt. It was alleged that Axis Bank had violated the provisions of Regulation 27 of the MB Regulations and thus adjudication proceedings were initiated against the lender by SEBI.

Axis Bank also tried to settle the matter under the consent mechanism but it was not accepted by Sebi.

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On Friday, Indian stock market makes move to adopt T+1 settlement cycle in India. Foreign investors oppose the move because of geographical hassle. Originally, the proposal SEBI or Securities and Exchange board of India presents the proposal. However, in 2020, the plan was deferred.

The history of settlement cycles in India

Before introducing a settlement cycle change, any regulator issues a one month prior notice of the enforcement to investors and public. After enforcement, a settlement must continue for at least 6 months.

In 2003, the Indian regulator changes the then T+3 settlement cycle to T+2 settlement cycle. Now, it changes to T+1 settlement cycle in India from T+2 cycle.

What is T+1 settlement cycle?

Firstly, in T+2 settlement cycle, an investor receives an amount from transaction in trade by broker in a cycle of three days.

On change, T+1 cycle is not likely to bring about any technical changes in the way investors make transactions. As per SEBI, a shorter settlement cycle reduces risks. It releases capital or risk on it that is taken as collateral. Further, it also reduces the risk of default.

Now, it will take 24 hours to credit money to investors. It will eventually make the market more effective.

Motilal Oswal Financial Services are of opinion that this move will increase retail investors’ participation and inflow of investments to equity markets. It will give investors more liquidity.

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SEBI, the capital markets regulator, extended the deadline for existing trading and demat account holders to provide a choice of nomination or opt out of nomination until March of next year.

SEBI requested in July 2021 that all existing eligible trading and demat account holders provide a choice of nomination on or before March 31, 2022, or the trading and demat accounts would be frozen for debits.

In a circular issued on Thursday, Sebi stated, “On the basis of representations received from various stakeholders, it has been decided that the provision relating to account freezing shall enter into force with effect from March 31, 2023 rather than March 31, 2022.”

Sebi also stated that re-submission of nomination details will be optional for existing investors who

The previously required details, such as the nominee’s mobile number, e-mail ID, and identification details of the minor nominee, have been made optional.

Investors who open new trading and demat accounts on or after October 1 have the option of providing nomination or opting out through a declaration form.

Furthermore, existing investors who have not submitted nomination details to date and intend to do so or opt out of nomination (not to nominate anyone) may be able to do so through two factor authentication logins on the internet trading platform for stock brokers/depository participants who provide such service. The previously required details, such as the nominee’s mobile number, e-mail ID, and identification details of the minor nominee, have been made optional.

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In October 2021, Wellness Forever Medicare Ltd, a pharmacy chain backed by Adar Poonawalla, filed draft papers, where its leading shareholder Serum Institute of India (SII) will sell most of its shares. The IPO consists of a fresh issue of Rs 400 crore and an offer for sale of upto 16.04 million shares from existing shareholders and promoters. Proceeds from the issue will be used for capital expenditure, setting up new stores, repayment of debt and funding working capital.

In November 2021, API Holdings filed draught papers with SEBI to raise Rs 6,250 crore through an IPO. The proceeds of the offering will be used to repay debt, fund organic and inorganic growth opportunities through acquisitions, and support other strategic initiatives. The founders and investors will not be selling stock in the IPO. API Holdings is also considering a pre-IPO fundraise of Rs 1,250 crore through private placement. If the pre-IPO round is completed, the amount from the IPO issue size will be reduced, according to the DRHP.

The net proceeds will be used to prepay or repay Rs 1,929 crore in outstanding debt, fund organic growth initiatives totaling Rs 1,259 crore, pursue inorganic growth through acquisitions and other strategic initiatives totaling Rs 1,500 crore, and for general corporate purposes.

API Holdings is the market leader in digital healthcare platforms. Prosus Ventures (formerly Naspers Ventures), TPG Growth, Temasek, CDPQ, LGT Lightrock, Eight Roads, and Think Investments are among its investors.

The issue’s book running lead managers are Citigroup Global Markets India, JM Financial Ltd, Kotak Mahindra Capital, Morgan Stanley India, and BoFA Securities India. PharmEasy, which primarily delivers medicines, announced in June that it would acquire a controlling stake in diagnostic chain Thyrocare for Rs 4,546 crore.

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According to official sources, the Income Tax department raided the offices of former NSE MD and CEO Chitra Ramkrishna and group operating officer Anand Subramanian in Mumbai on Thursday as part of a tax evasion inquiry.
According to them, the searches are being conducted to check and acquire evidence related to the claims of financial irregularities and alleged tax evasion levelled against the two.
Early in the morning, investigators from the Income Tax Department’s Mumbai investigation wing raided Ramkrishna and Subramanian’s offices.
Ramkrishna made news after a recent Sebi order said that she was guided in the hiring of Anand Subramanian as the exchange’s group operational officer and advisor to the managing director by a yogi living in the Himalayan ranges (MD).

Ramkrishna and others were prosecuted by the Securities and Exchange Board of India (Sebi) for alleged governance failings in the hiring of Subramanian as chief strategy advisor and his subsequent re-designation as group operating officer and advisor to the MD.
Sebi fined Ramkrishna Rs 3 crore, the National Stock Exchange (NSE) Rs 2 crore, Subramanian, former NSE MD and CEO Ravi Narain, and V R Narasimhan, the chief regulatory officer and compliance officer, Rs 6 lakh.
According to the Sebi ruling, Ramkrishna disclosed various internal secret information with the yogi, including NSE’s financial and business objectives, dividend scenario, and financial results, and even advised him on employee performance reviews.

From April 2013 to December 2016, Ramkrishna served as the managing director (MD) and chief executive officer (CEO) of NSE.
In her order, the regulator stated that she refused to identify the identity of the unknown person and claimed that the unknown person was a spiritual force.
Ramkrishna and Subramanian have been barred from associating with any Sebi-registered market infrastructure institution or intermediary for three years, while Narain has been barred for two years.
Ramkrishna’s excess leave encashment of Rs 1.54 crore and delayed bonus of Rs 2.83 crore were also ordered by Sebi to be forfeited by NSE.

NSE was also forbidden from launching any new product for six months by Sebi.
Following the discoveries, the Congress party urged that the government provide a white paper on the NSE’s operation.
“The finance ministry and the prime minister should issue a white paper on the status of the National Stock Exchange and the alarming acts of a ‘invisible Baba’ who was dictating terms to the exchange’s former CEO,” Congress spokesman Gourav Vallabh told reporters two days ago.

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Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi on Tuesday announced that the demand regulator doesn’t need mutual funds to appear with new fund offers (NFOs) based on crypto assets until the administration has declared restrictions for cryptocurrencies. 

Tyagi’s announcements arrived after property administration company Invesco Mutual Fund last month postponed its blockchain reserve due to legislative anxiety, despite Sebi’s authorization.

Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF) was the main proposal in India that got permission from SEBI that gives susceptibility to multinational organizations to contribute in the blockchain ecosystem. The scheme was initially planned to unlock for subscription on 24 November.

Previously, there have been conversations about legislating cryptocurrencies as it was some of the issues of conversation in the winter session of the Parliament. It collected further stride in the current past after a parliamentary status conference on finance fulfilled cryptocurrency stakeholders on Monday to observe several chances and challenges that could arrive in crypto financing and investment.

The cryptocurrency regulation bill was presumed to be inaugurated during the winter session of the Parliament in the session, but it has been on break as presently, as the administration expects to have additional conversations before submitting the bill.
Despite numerous investigation announcements and vigilance from specialists that accentuate the apparent warnings from crypto and how it may influence the economy, there has been a thriving attention among the abundances in India considering this digital money.

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