In a major policy shift during its 211th board meeting, the Securities and Exchange Board of India (SEBI), under the leadership of Chairman Tuhin Kanta Pandey, announced a comprehensive set of reforms aimed at modernizing India's financial markets. These wide-ranging changes are designed to promote ease of doing business, attract global investors, and reinforce investor trust.
10 key Takeaways from SEBI’s Latest Board Meeting
- Relaxed IPO Norms for Large Listings: SEBI has eased the Minimum Public Offer (MPO) and Minimum Public Shareholding (MPS) requirements for large IPOs, making it easier for major companies to tap public markets.
- Single-Window System for FPIs: A new streamlined portal—India Market Access (www.indiamarketaccess.in)—will serve as a one-stop platform for Foreign Portfolio Investors (FPIs), significantly simplifying regulatory onboarding and market entry.
- Broader Anchor Book Participation in IPOs: To attract long-term capital, SEBI has expanded the scope of anchor investors in IPOs to include insurance companies and pension funds. The anchor investor quota has been increased to 40%.
- REITs Recognized as Equity Instruments: Real Estate Investment Trusts (REITs) will now be treated as equity investments, enabling mutual funds to increase exposure and helping to deepen the real estate capital market.
- Reduced Exit Loads for Mutual Funds: In a move to improve transparency and investor protection, SEBI has capped mutual fund exit loads at 3%, down from the earlier 5%.
- Revamped Related Party Transaction (RPT) Norms: New RPT regulations introduce scale-based thresholds and simplify disclosure norms, ensuring greater clarity and accountability for listed entities.
- New Category of AIFs for Accredited Investors: A new, more flexible class of Alternative Investment Funds (AIFs) will be introduced, catering exclusively to accredited investors. Additionally, Large Value Funds (LVFs) will benefit from relaxed operational norms.
- 'India Market Access' Portal Launch: The dedicated website aims to centralize information and ease regulatory compliance for FPIs, marking a significant push toward a digital-first regulatory framework.
- SEBI’s Local Presence to Expand: To improve oversight and engagement, SEBI will establish regional offices across major Indian cities, strengthening its on-ground regulatory footprint.
- Enhanced Governance at Market Infrastructure Institutions (MIIs): Governance at MIIs will be bolstered with the appointment of two Executive Directors to oversee core regulatory and operational responsibilities, aiming for stronger institutional accountability.
Also Read: Canara Robeco AMC Gets SEBI Approval to Launch IPO
Conclusion
With these sweeping reforms, SEBI benchmarked a shift in its regulatory approach, focusing on accessibility, flexibility, and protection. By simplifying compliance and enhancing governance, SEBI is setting the stage for a more inclusive and globally competitive Indian capital market.
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