Sebi Enforces Stricter Lock-in Rules; LIC Shares Surge on Bonus News; IFSCA Revokes Broker License
Sebi tightens lock-in norms; LIC jumps on bonus plan; IFSCA cancels licence
Business Standard
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The Securities and Exchange Board of India (Sebi) has tightened lock-in norms for pledged shares, marking them as 'non-transferable' to enhance compliance. Meanwhile, shares of Life Insurance Corporation of India (LIC) rose nearly 7% following a proposed bonus issue, while the International Financial Services Centres Authority (IFSCA) canceled the license of broker-dealer String AI IFSC for regulatory violations.
- 01Sebi's new rules aim to prevent circumvention of lock-in requirements for pledged shares.
- 02LIC's stock price increased by 6.8% following news of a potential bonus issue.
- 03The IFSCA's cancellation of String AI IFSC's license marks a significant regulatory action.
- 04LIC's market capitalization reached ₹5.02 trillion after the stock surge.
- 05The IFSCA cited multiple regulatory violations leading to the license cancellation.
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The Securities and Exchange Board of India (Sebi) has implemented stricter compliance measures for lock-in requirements on pledged shares, designating those that cannot be locked in as 'non-transferable' for the lock-in period. This move is aimed at preventing promoters and pre-IPO shareholders from bypassing lock-in norms through pledging. In a related development, shares of Life Insurance Corporation of India (LIC) surged nearly 7% to close at ₹794 after the company announced it would consider a bonus issue at its board meeting scheduled for April 13. This increase in stock price boosted LIC's market capitalization to ₹5.02 trillion. Additionally, the International Financial Services Centres Authority (IFSCA) has taken a significant regulatory step by canceling the license of broker-dealer String AI IFSC, previously known as King Blockchain, due to multiple violations, including inadequate infrastructure and unauthorized activities. This marks the first enforcement action of its kind by the IFSCA, following inspections that revealed serious lapses.
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The tightening of lock-in norms will enhance market integrity and protect retail investors from potential manipulation. The surge in LIC's shares may increase retail investor participation and liquidity, benefiting the broader market.
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