SEBI tightens rules on use of unregulated financial influencers: SEBI has directed brokers and mutual funds to stop using the services of unregulated influencers for their marketing and advertising campaigns. In the Indian stock market, the popularity of such so-called financial influencers has increased a lot in the recent past, who keep giving advice about stocks and other means of investment through their YouTube channels and social media accounts like Instagram, X.
In a statement issued by SEBI, it has been told that it has taken this decision keeping in mind the increasing complaints and concerns of unregulated influencers misleading investors by making false claims. However, SEBI has also clarified that financial influencers who are only doing investor education work will not come under the purview of these restrictions. According to SEBI data, the number of trading accounts in India had increased from 3.6 crores to 15.4 crores between April 2019 and April 2024. That is, this number has increased more than four times in 5 years.
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New formula for stock price for voluntary de-listing
SEBI Chairperson Madhabi Puri Buch has said that companies that want to do voluntary de-listing will have to fix their stock price according to a fixed formula. She has said that companies doing de-listing will have to keep in mind the formula of minimum floor price + 15 percent premium while deciding the price of their shares. Buch said this in a press conference held after the meeting of the SEBI board on Thursday, June 27. She said that the SEBI board has approved important changes in the rules for voluntary de-listing of companies.
VIDEO | “We have jurisdiction over entities that we regulate. We do not have jurisdiction over entities that do not come and register with us and are not part of our ecosystem. The entities which are regulated by us, are now being mandated that they can not associated with people… pic.twitter.com/ukhy18xq9j
— Press Trust of India (@PTI_News) June 27, 2024
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Fixed price process instead of reverse book building
According to Madhabi Buch, SEBI’s board has decided to start the fixed price process as an alternative to the reverse book-building process for voluntary de-listing of companies. Under this, companies will be allowed to offer a fixed price for delisting, which should be at least 15 percent higher than the floor price. This price will be determined on the basis of the rules prescribed by SEBI. SEBI says that the new rules will make de-listing easier. Under the current process, the reverse book-building process has to be adopted for de-listing. In which the shareholders offer the price on their behalf, at which they are ready to sell their shares to the big shareholders.