SEBI issues adjudication order against Samena Special Situations Mauritius for regulatory violations. RBI mandates authorised banks to provide Mio-market bid/ask prices for FX and interest rate derivatives, plus full cost disclosures to retail users pre-FX contracts, enhancing transparency and fair pricing in forex dealings.
Regulatory Spotlight
India's markets regulator SEBI has passed an adjudication order targeting Samena Special Situations Mauritius amid ongoing enforcement against offshore entities flouting securities norms. Concurrently, RBI is rolling out reforms to fortify the FX ecosystem, focusing on derivatives and retail protections amid rising transaction volumes.
Key Highlights:
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SEBI's order addresses potential non-compliance by the Mauritius-based fund, part of broader scrutiny on foreign investors.
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RBI requires banks to quote mid-market bid/ask prices for FX forwards, swaps, options before derivative contracts with retail users.
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Authorised banks must disclose total costs—including spreads, fees—for FX transactions to retail clients prior to agreements.
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Aims to curb opaque pricing, empower MSMEs/retailers, deepen onshore FX market with FBIL reference rates.
These steps signal tighter oversight and user empowerment. Stakeholders, stay compliant!
Sources: SEBI Orders, RBI Master Directions, Economic Times