SEBI Board Meeting Highlights: Key Approvals and Initiatives
- Neha Redekar
- Oct 1, 2024
- 3 min read
The 207th meeting of the Securities and Exchange Board of India (SEBI) Board took place in Mumbai on 30th September 2024, where significant approvals and initiatives were announced aimed at enhancing the Indian financial market landscape.
Here are the key takeaways from the meeting:
Secondary Market Developments
New Trading Options for Investors: SEBI has approved the introduction of a UPI block mechanism for trading in the secondary market, similar to the ASBA process. Investors will also have access to a 3-in-1 trading facility. Qualified Stock Brokers (QSBs) will be required to offer one of these options mandatorily.
Optional T+0 Settlement Cycle: The scope for an optional T+0 settlement cycle has been expanded, providing investors with more flexibility in trade settlements.
Market Intermediaries Enhancements
Investment Advisers and Research Analysts Review: A review of the regulatory framework for Investment Advisers (IAs) and Research Analysts (RAs) aims to simplify compliance and facilitate ease of doing business.
Summary Proceedings for Violations: Amendments to the SEBI (Intermediaries) Regulations, 2008 will enable quicker resolutions for certain types of violations through summary proceedings.
Primary Market Initiatives
Faster Rights Issues: The Board approved measures to expedite the rights issue process, allowing flexibility in allotment to specific investors under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Ease of Doing Business: Initiatives were introduced to streamline processes under various SEBI regulations, including the SEBI (LODR) Regulations 2015 and the SEBI (ICDR) Regulations, 2018, to promote a more business-friendly environment.
Mutual Funds Framework
New Investment Product: SEBI introduced a regulatory framework for a new asset class, along with the Mutual Funds Lite (MF Lite) framework designed for passively managed schemes, making it easier for investors to access these products.
Alternative Investments & FPIs
Investor Rights in AIFs: Amendments will ensure pro-rata and pari-passu rights for investors in Alternative Investment Funds (AIFs).
Disclosure for Offshore Derivatives: The Board proposed that Offshore Derivative Instruments (ODIs), previously known as P-Notes, and segregated portfolios of Foreign Portfolio Investors (FPIs) will now be subject to similar disclosure requirements as FPIs.
Investor Protection Measures
Uniform Nomination Facilities: The introduction of standardized norms for nomination facilities in the Indian securities market aims to enhance investor protection and streamline processes.
Surveillance and Compliance
Insider Trading Regulations: Amendments to the SEBI (Prohibition of Insider Trading) Regulations, 2015 will refine the definitions of ‘connected person’ and ‘immediate relative’, enhancing clarity and compliance.
Debt and Hybrid Markets
Sustainable Finance Framework: The SEBI will facilitate corporate fundraising by amending the regulations governing the issuance and listing of Non-Convertible Securities, thereby expanding the Sustainable Finance Framework.
Bond Market Growth: Measures to ease compliance for listed Non-Convertible Securities and simplify disclosures regarding Debenture Trustees are expected to foster the growth of the bond market.
Legal Affairs and Guidance
Ease of Documentation: Amendments to certain SEBI Regulations will allow for self-attestation of documents, removing the previous requirement for notarization.
Informal Guidance Accessibility: SEBI plans to enhance access to its Informal Guidance Scheme, making it easier for stakeholders to seek clarifications.
Conclusion
The SEBI Board's recent meeting highlights a proactive approach to enhancing the Indian securities market through regulatory reforms aimed at increasing efficiency, transparency, and investor protection. These initiatives are expected to bolster investor confidence and promote a more vibrant market environment.
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