A rundown of all of SEBI’s announcements in 2021
Podcast: A rundown of all of SEBI's announcements in 2021
Hello doston, Angel broking ke iss podcast mein aap sabhi ka swagat hai.
Doston, July ka mahina chal raha hai and we are halfway through the year. This year the markets have been heavily influenced by a number of announcements and rules set by SEBI, the market regulator.
One of the major announcements made by SEBI this year is the margin trading rules.
Iss saal ki shuruaat mein chhote traders ko mila ek bada jhatka. SEBI put out new rules that pushed up the upfront margin requirement for trades in secondary markets from 25% to 50%.
Before I proceed, two words on what is margin trading. Ek intra-day trader margin trade tab karta hai, jab woh broker se funds borrow kar ke ek equity ya derivatives market mein trade karta hai. Jo shares ya derivatives trade kiye jaate hai, they become the collateral for the money raised from the broker. Traders jo shares ki actual value hoti hai, uska ek chhota percentage pay kar ke trade kar sakte hai.
If you are an intra-day trader, you would have been asked by your broker to maintain a minimum amount with your broker. Interest rate is charged on whatever amount you borrow from the broker. In case, an intra-day trader fails to maintain the minimum amount, his trades get forcibly squared off.
The upfront margin requirement rules have angered a lot of intra-day traders.
However, the market regulator isn't stopping at 50% upfront margin requirement. In its next phase, SEBI will push up this upfront margin requirement to 75% by the end of August and then 100% by the end of September.
Yeh rules SEBI ne markets mein jyaada transparency and accountability laane ke liye issue kiye hai but the truth is that iska impact sab se jyaada small intraday traders pe pada hai. If you have been trading in the markets this year, I am sure aapka kaafi time margin calculations compute karne mein nikla hoga.
It is not only traders but brokerages who have also been affected. Under the 'Peak margin' framework, even brokerages have to report margin details several times throughout the day. Market ke utaar-chadaav ke kaaran available margin kaam-jyada hoti rehti hai, and brokerages have also had to align themselves with this framework.
Intra-day traders have naturally been criticising the rules for being overly strict and their cries haven't fallen on deaf ears.
Broking industry body jiska naam hai ANMI yaane Association Of National Exchanges Members of India (ANMI) has also made a representation to SEBI to reduce the total day-trade peak margin demanded to 50% from 75%. ANMI ka kehna hai ke the maximum risk in day trades runs up to an extent of 25% to 33% and taking a 50% margin requirement is more than enough to cover all the risks.
Abhi tak ANMI ke representation pe SEBI ka koi response nahi aaya. The moment we have an update we will be sure to update you.
Ek aur game-changing rule jo SEBI ne issue kiya hai that works in favour of retail investors is the change in norms for fund manager compensation.
In April this year, SEBI mandated that a minimum 20% compensation of all key personnel of a mutual fund will be in the form of units of the mutual fund schemes they manage. This means that the fund manager, chief executive officer, chief investment officer, research head will all have skin in the game. Kehna ka matlab yeh hai ke they won't be able to sell you a bad product while they keep investing in better mutual funds. Iska yeh bhi matlab hai ke fund managers will have to keep improving the performance of their funds, otherwise their compensation will suffer as well.
Alright, let's move on to the third most important set of rules issued by SEBI this year. Aap sabhi jaante hai ke start-up ecosystem ke kai players jaise ke Zomato, Paytm, Nykaa, Delhivery are on their way to enlisting themselves in the secondary markets. To encourage more startups to enlist themselves, SEBI has relaxed a number of rules for listing startups.
SEBI has reduced the time period of holding 25% of the pre-issue share capital of the issuer company by eligible investors to 1 year from the earlier requirement of 2 years.
Another change is in how the issuer company was not allowed to make discretionary allotments of shares before the listing. As per the new rules, the issuer company will now be able to allocate 60% of the issue size on a discretionary basis to eligible investors. Doston, yeh rule thoda complex sound karta hai but iska gist yeh hai ki startups ki issuer companies will have an easier time raising funds from other investors.
Additionally, SEBI on June 1 this year extended the timeline for mutual funds to comply with new rules of risk disclosure to investors. Inn rules ke hisaab se, mutual funds are required to disclose to the investors all relevant details of risk taken on, the performance of the fund and the companies invested in by the mutual fund. While many mutual funds already do this, kuch kuch aise mutual funds hai jinhone abhi tak comply nahi kiya. Unhe September 1st tak ka time diya gaya hai.
Under these rules, mutual fund houses will also have to disclose the risk-o-meter of the scheme as well as that of the benchmark. Mutual fund houses will also need to disclose the performance of their scheme compared to the performance of the benchmark index.
Market regulator SEBI ne yeh rules chhote investors ko better informed rakhne ke liye laye hai. Hopefully,agli baar aap jab invest karenge toh mutual fund ka till date performance aur uska portfolio examine kar ke hi karenge.
Chaliye doston, aaj ke liye bas itna hi.
Jaane se pehle, ek baat yaad rakhiyega ke stock market investing mein risk hamesha rahega. This podcast has been made for educational purposes only and the investor must do his own research as well.
Aise aur interesting podcasts sunne ke liye humein follow karein via youtube and other social media channels. Until then goodbye and happy investing!
Investments in the securities markets are subject to market risks. Read all the related documents carefully before investing.