Latest news with #SebiAct
Time of India
2 days ago
- Business
- Time of India
Market fraud caution: Sebi reiterates dabba trading is unlawful, warns investors to remain alert
Markets regulator Sebi has once again warned investors against dabba trading, calling it illegal and urging the public to remain alert and avoid dealing with entities offering such unauthorised trading services. Tired of too many ads? go ad free now In a statement issued on Monday, Sebi said, 'It is reiterated that dabba trading is illegal, and Sebi is committed to safeguarding investor interests through regulatory enforcement, awareness, and coordination with law enforcement agencies. Investors are advised to remain vigilant and not to deal with any entity offering illegal trading services.' Dabba trading refers to off-market trades that take place outside recognised stock exchanges and regulatory supervision. According to Sebi, such activities violate provisions of the Securities Contracts (Regulation) Act, 1956, the Sebi Act, 1992, and the Bhartiya Nyay Sanhita, 2023, PTI reported. The fresh advisory comes after Sebi took serious note of an advertisement in a daily newspaper last week that promoted dabba trading. Following this, Sebi, along with the National Stock Exchange ( ), initiated multiple actions. Sebi issued a formal communication to the newspaper expressing concern over the ad's promotion of illegal trading and its potential to mislead investors. The regulator has also filed a complaint with the cyber police seeking legal action against the entity behind the ad and other involved parties. The matter has also been referred to the Advertising Standards Council of India (ASCI) to examine possible violations of advertising norms and take corrective steps. Separately, NSE issued an investor caution alert highlighting the risks of dabba trading and warning the public against dealing with the entities mentioned in the ad. The exchange reiterated that investors should only trade through Sebi-registered brokers and recognised stock exchanges.
News18
2 days ago
- Business
- News18
Sebi again terms dabba trading illegal; cautions investors to remain vigilant
New Delhi, Jul 21 (PTI) Markets regulator Sebi on Monday reiterated that dabba trading is illegal and cautioned investors to remain vigilant and not deal with any entity offering illegal trading services. In market parlance, dabba trading refers to illegal and unregulated off-market trading that operates outside the purview of recognised stock exchanges and regulatory oversight. Such activities pose significant risks to investors and are in violation of various provisions of the Securities Contracts (Regulation) Act, 1956 (SCRA), the Sebi Act, 1992, and the Bhartiya Nyay Sanhita, 2023, Sebi said in a statement. 'It is reiterated that dabba trading is illegal, and Sebi is committed to safeguarding investor interests through regulatory enforcement, awareness, and coordination with law enforcement agencies. Investors are advised to remain vigilant and not to deal with any entity offering illegal trading services," the regulator said. The statement came after the Securities and Exchange Board of India (Sebi) took serious note of an advertisement promoting dabba trading activities published in a daily newspaper last week. Following the advertisement, Sebi, along with NSE, has taken several actions. A complaint has also been lodged with the cyber police, seeking appropriate legal action against the entity and other entities involved, the regulator said. Also, the matter has been brought to the attention of the Advertising Standards Council of India (ASCI) to assess violations of advertising standards and ensure appropriate corrective steps, it added. Additionally, the National Stock Exchange (NSE) issued an investor caution alerting the public about this specific instance and the entities involved, reiterating the dangers of engaging in dabba trading. The caution highlighted that investors should only trade through Sebi-registered brokers and recognised stock exchanges. PTI SP BAL BAL view comments First Published: July 21, 2025, 19:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
11-07-2025
- Business
- Time of India
DGGI officers uncover 6 shell companies issuing fraudulent invoices, Rs 48 crore fake IT claims
GST Intelligence wing DGGI has conducted searches on at least six premises in the city and uncovered fraudulent invoices worth Rs 266 crore and passing of fake ITC of Rs 48 crore from shell companies , the finance ministry said on Friday. Investigation in a case initiated in Bengaluru by the officers of Directorate General of GST Intelligence, Bengaluru Zonal Unit, said four companies, with no business activity, have shown receipt of hundreds of crores worth of goods and services. "The officers of Directorate General of GST Intelligence, Bengaluru Zonal Unit carried out searches in over six premises in Delhi, and uncovered fraudulent invoices worth over Rs 266 crore, involving availment and passing on of fraudulent Input Tax Credit (ITC) of Rs 48 crore from the shell companies," the statement said. The investigation indicated that initially, the key mastermind was one of the CA/statutory auditor, who managed the transactions of these companies. Further investigation revealed that the structure of entities and shareholding pattern, along with changes in the same, the CA/statutory auditor was acting as director in a few of these shell companies at some point of time -- clearly establishing the links behind the origin of the six shell companies. During searches on the premises of these companies, original documents, such as invoices and seals, were found in the premises of the mastermind. The key mastermind of the case has been arrested. Live Events "DGGI Bengaluru Zonal Unit has initiated a comprehensive investigation into this fraud, which has implications for innocent investors in listed companies. "Having found such pattern of GST frauds by use of circular trading and fake ITC by listed companies, DGGI has shared specific inputs with Sebi in the recent past for initiating action under the Sebi Act," the statement added.
New Indian Express
08-07-2025
- Business
- New Indian Express
Jane Street says Sebi charges extremely inflammatory, to challenge ban
MUMBAI: Stating that it has 'only engaged in basic arbitrage,' the now-banned US high-frequency trading giant Jane Street has told is preparing its official response to the Sebi charges and the resultant bank and that 'arbitrage trades are a core and common mechanism of financial markets.' International news agency Reuters, quoting the crippled company's internal communication to its employees, said on Tuesday that it will contest the ban imposed by the Sebi accusing it of market manipulation, claiming that its practices in question are "basic index arbitrage trading". Jane Street has also told their staff that it is "beyond disappointed" by what it calls "extremely inflammatory" accusations by the Securities and Exchange Board (Sebi) and is working on a formal response, Reuters reported without offering details as what could be the counter measures. The Sebi Act allows a market participant to challenge any adverse action taken against it by the Sebi, first in the Securities Appellate Tribunal and if not satisfied with the tribunal verdict can go to the high court and even to the Supreme Court. SEBI last Friday debarred the firm from the market and seized $567 million of its funds which the regulator feels that it gained from its pump and dump strategy during just 21 days of trading during which it had pocketed a whopping Rs 36,503 crore in net profit. Sebi in its interim order issued by its whole time member Anantha Narayan G, alleged that Jane Street bought large quantities of the 12 constituents of the Bank Nifty index first in the cash and futures markets to artificially support the index in morning trade, while simultaneously building large short positions in index options which were exercised or allowed to expire later in the day, pocketing huge profits in violation of its fair trade rules. The regulator, which tracked Jane Street's trading patterns for more than two years beginning January 2023 and ending May 2025, has also widened its investigation to include other indexes and exchanges, a source had said. Over the past three years, the derivatives market, which is the world leader in this segment, has had explosive growth as retail investors swarmed in, despite them booking heavy losses. A study released by Sebi this Monday showed that each retail trader in the derivatives space took a loss of Rs 1.1 crore in FY25, with their net loss increasing by 41% to Rs 1,05,603 study also found that as much as 91% of individual traders saw losses in equity derivatives segment in FY25, marginally down from its previous study which had showed that 93% had booked losses in accounted for roughly 60% of global equity derivative trading volume in May, according to the Futures Industry Association.
India Today
26-06-2025
- Business
- India Today
Sebi penalises BSE Rs 25 lakh for unequal data access, failure in oversight
The Securities and Exchange Board of India (Sebi) has fined the Bombay Stock Exchange (BSE) Rs 25 lakh for not giving equal access to corporate information and for failing to properly supervise certain trading an order released this week, Sebi said that BSE allowed some users, including employees of its Listing Centre Module (LCM) and paid subscribers, to access company announcements before they were made public on the BSE's official website. The regulator said this early access gave some traders an unfair advantage, which goes against the rules of fairness and equal opportunity in the stock also criticised BSE for not taking action against brokers who were repeatedly changing client codes during trades. These changes raise concerns about possible misuse and lack of proper called this failure 'laxity and negligence' and pointed out that BSE, being a first-level regulator, has a duty to maintain a clean and fair trading regulator said in its order, 'This case involves multiple acts of omission, laxity, and negligence, marked by a lethargic approach, which cannot be excused. If such regulatory oversight is allowed to continue unchecked, it risks damaging the credibility of both BSE and Sebi.'BSE has since made some improvements. It has added a time gap in the release of information to paid clients to avoid any unfair early access. However, Sebi said the problem existed earlier and had already caused a violation of the rules laid out in Regulation 39(3) of the SECC argued that there is no specific rule requiring it to provide corporate announcements via RSS feeds. Sebi replied that even if there is no such rule, the exchange still has a duty to make sure that all investors get the same information at the same further said, 'BSE, as a Market Infrastructure Institution (MII), bears a higher responsibility to uphold the principles of transparency. Any system that allows privileged early access—even due to technical reasons—must be rectified to maintain trust in the market.'The regulator decided to impose a monetary penalty under Section 23H of the Securities Contracts (Regulation) Act and Section 15HB of the Sebi Act, instead of opting for stricter measures. However, it stressed that the violations were serious and must not be Shukla, who issued the order, directed BSE to pay the Rs 25 lakh fine within 45 days from the date of receiving the also made it clear that if BSE fails to make the payment in time, recovery proceedings may be launched under section 28A of the Sebi Act. This could include attaching and selling the movable and immovable properties of BSE to recover the dues, along with applicable case brings attention to the importance of fair access to information and strong regulatory oversight in maintaining the trust of investors in India's capital markets.- Ends advertisement
