The Securities and Exchange Board of India (SEBI) held its 204th board meeting in Mumbai today on 15-March-2024, announcing several crucial decisions that will impact businesses and investors alike. Let’s dive into the highlights of the meeting and what they mean for you.
SEBI Board Meeting 15-March-2024: Key Decisions for Businesses and Investors
1. Launch of Beta Version of Optional T+0 Settlement: SEBI approved the launch of a Beta version of optional T+0 settlement, catering to a limited set of 25 scrips and brokers. This move comes after thorough stakeholder feedback and aims to enhance market efficiency. SEBI will continue to gather input from users during the Beta phase to refine the settlement process further.
2. Additional Disclosure Requirements Exempted for Certain FPIs: To streamline operations and facilitate ease of doing business, SEBI exempted additional disclosure requirements for Foreign Portfolio Investors (FPIs) with concentrated holdings in a single corporate group, under certain conditions. This exemption aims to reduce regulatory burden while ensuring transparency in the market.
3. Timelines for FPI Disclosure Relaxed: SEBI relaxed timelines for FPIs to disclose material changes, categorizing them into Type I and Type II changes. This move provides clarity and flexibility to FPIs, enhancing their operational efficiency.
4. Flexibility for FPIs in Dealing with Securities Post-Registration Expiry: In a bid to further ease doing business for FPIs, SEBI introduced measures allowing for the reactivation of expired registrations within 30 days and extending timelines for disposal of securities in various scenarios. These measures provide FPIs with more flexibility in managing their investments.
5. Amendments to IPO Regulations: SEBI approved amendments to regulations concerning Initial Public Offerings (IPOs), aiming to simplify processes and reduce bureaucratic hurdles for companies seeking to raise funds. These changes include doing away with certain deposit requirements and allowing greater flexibility in offer size adjustments.
6. Streamlining Compliance Requirements for Listed Companies: SEBI announced amendments to compliance regulations for listed entities, including adjustments to market capitalization-based requirements and timelines for board meetings. These changes aim to reduce regulatory burden and enhance operational efficiency for listed companies.
7. Standardizing Rumor Verification Process: SEBI approved measures to standardize the verification of market rumors by listed entities, ensuring a consistent and objective approach to handling such information.
8. Enhancing Trust in AIF Ecosystem: SEBI introduced due diligence measures for Alternative Investment Funds (AIFs) and their investors to bolster regulatory compliance and foster a more transparent investment environment.
Conclusion: The decisions taken at the 204th SEBI board meeting reflect a commitment to fostering a business-friendly environment while maintaining regulatory integrity. These measures aim to streamline processes, enhance transparency, and provide greater flexibility for market participants. As businesses and investors, it’s essential to stay informed about these changes to navigate the evolving regulatory landscape effectively.
To access the official board meeting releases by SEBI, please click here.
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