PTI New Delhi

Markets regulator Sebi on Thursday extended the 'expected loss-based rating scale' for the rating of municipal bonds. This would be in addition to the standardised rating scale, according to a circular issued by Sebi. 

Before this, credit rating agencies used expected loss-based ratings for projects and instruments, which were associated with the infrastructure sector, in addition to the standardised rating scales. 

"It is felt that EL Ratings, when used along with standardized rating scale/ Probability of Default(PD) Rating, can better reflect the recovery prospects of municipal bonds. Further, urban local bodies/ municipalities issue bonds primarily for the creation/development of infrastructure. 

Varyaa Creations banned from securities market

Sebi has restrained SME company Varyaa Creations Ltd (VCL) from accessing the securities market for alleged diversion of funds raised through its IPO. Additionally, the regulator has barred Inventure Merchant Banking Services Pvt Ltd from taking up any new assignment relating to merchant banking activities in the securities market till further directions.

SEBI likely probing Jane Street following market manipulation complaints

SEBI is investigating Jane Street, a leading global trading firm, following allegations of manipulative practices, said industry sources Moneycontrol reported. 

The sources informed Moneycontrol that the probe will cover multiple related entities, including JSI Investments, an entity through which Jane Street operates in India, and Jane Street Singapore Pte Ltd. Moneycontrol's queries to Jane Street were not answered. 

According to sources, SEBI is investigating concerns about a trading strategy where the firm takes large positions in index derivatives and then moves the underlying index to profit from its positions.