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Sebi’s board approves proposals including mandatory demat for select IPO shareholders, easier norms for FPIs investing in bonds, and discussed settlement scheme for NSEL brokers.
Sebi Chairman Tuhin Kanta Pandey address press conference after the market regulator’s board meeting.
Sebi Board Meeting Outcome: The Securities and Exchange Board of India’s (Sebi) board on June 18, Wednesday, approved a slew of measures spanning across IPO rules, PSU delistings, foreign portfolio investments, startup ESOPs norms, and legacy cases involving the National Spot Exchange Ltd (NSEL).
Sebi Board Meet Today: PSU Delisting Norms Eased
The market regulator approved a framework to ease the voluntary delisting of public sector undertakings (PSUs) where the government or promoter group holds 90% or more equity. This is aimed at simplifying the exit route for such entities, provided they meet all shareholder protection norms.
In this regard, the proposal to amend the SEBI (Delisting of Equity Shares) Regulations, 2021, has been approved by Sebi.
Sebi Board Meet Today: ESOP Rules for Start-up Founders Relaxed
Sebi’s board on Wednesday also approved a proposal to allow startup founders to retain ESOPs granted one year before IPO plans.
Under current regulations, promoters are barred from holding or being granted share-based benefits like ESOPs. If they hold such benefits at the time of filing the DRHP, they must liquidate them before the IPO.
Sebi Board Meet Today: Mandatory Demat Holding for Select Shareholders Before IPO Filing
Sebi has mandated that select shareholders — including promoters, directors, and key managerial personnel — must hold their shares in dematerialised (demat) form before a company files its draft IPO papers.
Sebi Board Meet Today: QIP Documentation Rationalised
In a relief for listed companies raising funds through qualified institutional placements (QIPs), markets regulator Sebi on Wednesday cleared amendments to the Sebi (ICDR) Regulations, 2018, to rationalise the disclosure requirements in QIP placement documents. The decision is intended to reduce the compliance burden without compromising on critical investor information.
Currently, in QIPs, the issuer is required to disclose the details in the placement document as prescribed under the ICDR (Issue of Capital and Disclosure Requirements) norms.
Sebi Board Meet Today: Compliance Relief for FPIs That Invest In Indian Bonds
To encourage investment in Indian government securities, Sebi decided to simplify rules and ease compliance for foreign portfolio investors (FPIs) that invest exclusively in government bonds. The step is expected to widen the participation of global investors in the Indian debt market.
Sebi Board Meet Today: Settlement Scheme for NSEL-Related Brokers
The markets regulator said it will introduce a one-time settlement scheme for certain brokers who had traded on the now-defunct National Spot Exchange Ltd (NSEL) platform. This special dispensation is part of efforts to resolve long-pending matters through a structured mechanism.
Sebi Board Meet Today: AIF Co-Investment Approved
The board of Sebi approved a proposal on providing flexibility to alternative investment funds to offer co-investment opportunities to investors within the AIF structure.
Co-investment, in AIF industry parlance, refers to the offering of the investment opportunity to the investors for additional investment in unlisted securities of an investee company, where an AIF is also making or has made the investment.
Addressing the press conference after the board meeting, Sebi Chairman Tuhin Kanta Pandey said, “All of these proposals have been consultation papers, gone to respective committees, and came to the Board. You are aware that we have a regulation on how to bring in changes in regulations, which mandates public consultations. Fourth proposal relates to voluntary delisting of PSUs. The fourth proposal refers to voluntary delisting of PSUs. We are now introducing special provisions for these PSUs – These apply to PSUs where the promoter—typically the Government and holds 90% or more equity.”
Many of these companies were listed historically with minimal public float and may now need to be delisted. These PSUs do not include any BFSI companies, he added.
This was the second board meeting under the chairmanship of Tuhin Kanta Pandey, who assumed office on March 1.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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