SEBI plans to reform the securities lending system and introduce a unified portal for intermediaries in 2027

A source with direct knowledge of the situation told Reuters on Wednesday that India's market regulator does not see flaws in the structure or design of the new stock trading auction mechanism and is unlikely to conduct an immediate review of it.

This week, India's Nifty 50 index showed significant volatility after the introduction of a new mechanism for determining final stock prices on Monday. This change triggered sharp fluctuations in futures and options prices on Tuesday when weekly derivatives contracts expired.

An anonymous source stated that 'it is too early to conduct any review. Participation increased on Tuesday, and the Securities and Exchange Board of India expects further growth in participation.' The source also added that brokers were advised to encourage the participation of retail investors.

Although SEBI did not immediately respond to a request for comment, following the implementation of the new mechanism, option premiums changed sharply, leading to unexpected losses for some traders and profits for others. According to exchange data, arbitrage funds were among the main beneficiaries, recording a one-day increase in valuation using the mark-to-market method.

These unforeseen price fluctuations prompted traders to claim that the system was not working as expected and that issues needed to be addressed. The source noted that 'SEBI expects these issues to be resolved soon. There are no specific timelines for reviewing the system.'

Zee Entertainment Enterprises (ZEE) announced on Sunday that it received an order from the Securities and Exchange Board of India (SEBI) and intends to seek legal advice regarding this decision.

The company's statement emphasized that this order will not affect the current fundraising campaign aimed at strengthening the company's financial position.

A company representative stated that ZEE will take all necessary steps to successfully complete the capital raising process to enhance value for all stakeholders. Furthermore, the company will continue to work on protecting the interests of all stakeholders in connection with the allegations against the company and its promoters, taking appropriate measures in accordance with the law.

Previously, on Friday, the company's shareholders voted in favor of the fundraising proposal. On the same day, the market regulator SEBI imposed a fine of 1.48 crore rupees on the company and its promoters—CEO Puneet Goenka and Honorary Chairman-Founder Subhash Chandra.

The regulator made a final decision that prohibits ZEE from accessing the securities market for two months. A restriction was also placed on Chandra and Goenka, forbidding them from signing or trading securities for one year due to the unauthorized mortgage of ZEE land in Hyderabad to secure loans related to the promoters.