Market watchdog, SEBI, on Saturday, refused to approve the new delisting regulations due to the unavailability of sufficient data. The SEBI board also announced key decisions affecting NPO fundraising, regulations for index providers, alternative investment funds (AIF) operations, etc.
Read also: Sebi chair Buch warns investors against heavy F&O bets
Key points of the SEBI Board
These decisions were taken by the board of the Securities and Exchange Board of India (Sebi) during its meeting held in Mumbai on Saturday. Here are the main decisions taken by the SEBI board during its meeting.
New Disposal Regulations
Those awaiting a firm decision on new delisting rules may have to wait longer as the SEBI board on Saturday denied approval of the new regulations, citing lack of available data.
“The delisting regulations were discussed in the meeting held today,” said Madhabi Puri Buch while addressing the press in Mumbai. The board found the available data to be insufficient to draw a conclusion, she added.
Read also: Not seeking extension to end probe in Adani-Hindenburg matter: Sebi to SC
Regulatory framework for index providers
The market regulator has announced the introduction of a regulatory framework for index providers. The framework will be introduced to ensure transparency and accountability in the governance and management of financial benchmarks in the securities market.
Read also: Sebi expands the scope of achieving minimum public unit ownership requirement in InvITs. Details here
NPOs fundraising
The board also approved providing flexibility to non-profit organizations (NPOs) in raising funds through the social stock market.
To boost NGO fundraising on the Social Stock Exchange, the SEBI board approved the reduction in minimum issue size in case of public issue of Zero Coupon Zero Principal Instruments (ZCZP) by NPOs on SSE from Rs.1 Crore to Rs. 50 lakhs. The minimum application size has also been reduced to ₹10,000 from ₹2 lakhs.
Read also: “Sebi must balance development, regulation, investor protection”
Apart from this, SEBI has allowed NGOs to disclose their past social impact report in the fundraising document. More NGOs will become eligible for registration and fundraising through the issuance and listing of ZCZP on SSE by allowing entities registered under section 10(23C) and 10(46) of the Income Tax Act, SEBI said in its press release.
Small and Medium REITs (SM REITS)
Online platforms offering fractional ownership of real estate will be regulated by SEBI. Moreover, they will be registered under the framework for small and medium reits, according to the SEBI press release.
In a press statement issued after its quarterly board meeting, the Securities and Exchange Board of India (SEBI) also said that all fresh investments by mutual funds will be held in demat form from September 2024.
SEBI Chairperson Madhabi Puri Buch said after the board meeting that investors are losing money in equity derivatives trading, which, she said, is a concern and the regulator’s duty is to warn.
AIF regulations
“The mandate for the appointment of a custodian, currently applicable to schemes of Category III AIFs and schemes of Category I and II AIFs with a corpus of more than ₹500 crore, will be extended to all AIFs,” the regulator said regarding Alternative Investment Funds (AIFs).
From September 2024, fresh investments made by AIF will be made in dematerialized form. The SEBI board has also made it mandatory for all AIFs to appoint a trustee. So far, the condition applied only to schemes of Category III AIFs and to schemes of Category I and II AIFs with a corpus of more than Rs.500 Crore.
Milestone Warning!Livemint tops charts as the fastest growing news site in the world 🌏 Click here to know more
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More or less
Updated: 25 Nov 2023, 20:31 IST