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Bridging the Regulatory Gap: Regulatory Oversight on Third Party Algorithm Trading Strategy Providers
[By Gagireddy Vyshnavi Reddy] The author is a student of Tamil Nadu National Law University. Part-1 With the advancement of technology, the incorporation of algorithm strategies into the trading of securities has emerged and has been growing at an exponential rate since then. The provision of algorithm strategies for the purpose of trading securities…
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Beyond the Rules: The Dangers of Shifting Sands in Stock Broking Industry
[By Santripta Swain] The author is a student of National Law University Odisha. Introduction Recently, SEBI has been heavily criticised for its conflicting and lackadaisical approach in dealing with the securities matters. The Appellate Courts of different forums – the Supreme Court, High Court, or Securities Appellate Tribunal (SAT) have time and again been…
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Unpacking SEBI’s Informal Guidance: Delving into Takeover Code Regulation 3
[By Shyama Singh] The author is a student of Gujarat National Law University, Gujarat. Background Through an informal guidance by way of an ‘interpretative letter’ dated 21st July 2023, the Securities and Exchange Board of India (“SEBI”) clarified whether open offer obligations under Regulation 3(3) of the Securities and Exchange Board of India (Substantial…
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Unsung Villains: Highlighting Logical Fallacies in the Indian Landscape with Respect to Credit Rating Agencies
[By Soham Niyogi] The author is a student of Rajiv Gandhi National University of Law, Punjab. Introduction A calamity may be overkill, but when giant conglomerates drop like flies and wither away, it would certainly raise some eyebrows about how this disaster occurred, or how it could have been avoided. Some of these behemoths…
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Empowering Investors: India’s Voluntary Trading Account Freeze Option
[By Vidushi Dubey] The author is a student of Amity University. Introduction India’s stock broking landscape is on the cusp of a significant shift, empowered by the Securities Exchange Board of India’s (SEBI) recent circular. Announced on January 12, 2024 and set for implementation on July 1st, 2024, this initiative introduces a groundbreaking facility…
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Fiscal Frontiers: Unveiling India’s Evolving ‘Finfluencer’ Regulatory Framework
[By Arnav Gulati] The author is a student of Jindal Global Law School. Introduction: In the burgeoning digital finance arena, financial influencers, termed as ‘finfluencers’ have emerged as influential arbiters of financial decision-making, however their actions continue to be uncontrolled. The absence of regulatory oversight in this domain has created a vacuum that has been…
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SEBI’s Take on Rumour Verification: Micromanagement or a Welcome Move?
[By Dharani Maddula & Anoushka Das] The authors are students of Symbiosis Law School, Pune. Introduction On 28 December 2023, the Securities and Exchange Board of India (“SEBI”) published a new Consultation Paper on Amendments to SEBI Regulations with respect to Verification of Market Rumours (“Consultation Paper”). The paper seeks to use material price…
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Anatomising (Mis)utilization of Client’s Securities by (Professional) Clearing Members
[By Aniket Panchal & Shubhankar Sharan] The authors are students of Gujarat National Law University. Introduction An interesting chain of events transpired centered on Edelweiss (a registered Professional Clearing Member (“PCM”), against whom appeals were filed in response to directives from the Member and Core Settlement Guarantee Fund Committee (“Committee”) of NSE Clearing Ltd…
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Performance Validation Agency: SEBI’s Fresh Step Towards Investor Protection
[By Srishti Multani & Aryan Birewar] The authors are students of Symbiosis Law School, Pune. Introduction The Securities and Exchange Board of India (‘SEBI’) on 31st August 2023, issued a Consultation Paper to propose a Performance Validation Agency (‘PVA’). The objective of such an institution is to validate performance claims of SEBI-registered intermediaries. Such…