SEBI Chairman Ajay Tyagi Warns Investors

SEBI chairman warns investors, do not to invest on the basis of rumors.

Amid increasing participation of retail investors in the stock market, market regulator SEBI Chairman Ajay Tyagi has advised investors to avoid investments based on rumors.

Tyagi told the investors that they should deal only with registered brokers.

According to him, after Corona, there has been a big increase in the number of new Demat and trading accounts in the Indian stock market. Apart from this, there has been a lot of investment in mutual funds.

Speaking on the occasion of World Investor Week 2021, Tyagi said, “Investors need to be careful and study while investing in the stock market. They should not invest on the basis of market rumors.

He said that SEBI conducts awareness programs from time to time to make investors aware of the stock market.

In this episode, World Investor Week (WIW) is celebrated every year. It is an initiative of the International Organization of Securities Market Commission (IOSCO).

It is celebrated by stock market regulators around the world. This year WIW is being celebrated from November 22 to November 28.

Meanwhile, SEBI has issued a clarification regarding amendments made in the rules governing Alternative Investment Funds (AIFs).

The AIF, 2012 was amended by SEBI through a notification issued on November 9. SEBI has amended and allowed Category-3 AIFs. This includes large value funds for Category-3 AIF accredited investors.

In a circular issued on Monday, SEBI clarified that the limit for investment in listed equities should be calculated based on the fund’s NAV on the business day on which the Category-3 AIF investment takes place.

Amendment in the Framework for Violation of Disclosure Norms

SEBI on Tuesday amended the framework that empowers stock exchanges to impose penalties for violating disclosure norms.

This penalty is related to delay in the issuance of bonus issues by listed companies etc. Under this, companies violating the norms will have to pay a fine of Rs 20,000 per day from the date of compliance.

In a circular issued on Tuesday, SEBI said that stock exchanges can withdraw from this framework issued in August 2019 if the interest of investors is not affected.