The Securities and Exchange Board of India (SEBI) is gearing up for its next board meeting on June 18, where a range of measures are expected to be approved. The aim is to simplify regulations for market intermediaries and various segments, with a focus on enhancing the ease of doing business. Sources familiar with the matter have indicated that the agenda for the meeting is still being finalized, but it is likely to include key decisions on qualified institutional placements (QIPs), real estate investment trusts (REITs), infrastructure investment trusts (InvITs), alternate investment funds (AIFs), foreign portfolio investors (FPIs), and more.
Optimum Regulations: SEBI has been actively engaging with industry bodies and stakeholders in recent months to address procedural challenges in the market. The board is expected to approve several operational relaxations and tweaks during the upcoming meeting. These may include allowing more investments in REITs and InvITs through mutual funds, simplifying the documentation process for QIPs, and offering co-investment options for AIFs through separate vehicles. Additionally, SEBI may introduce a simplified registration process for FPIs investing in Indian government bonds and extend relaxation on physical document delivery norms for listed debt issuers.
SME Revisit: In response to a rise in fund misuse and fraudulent disclosures by SME companies, SEBI may revisit stricter norms for SME listings. This could involve increasing the promoter lock-in period, mandating higher operating profits, enhancing disclosures, and tightening fund utilization tracking. The board is expected to address these concerns and finalize proposals during the upcoming meeting. Moreover, SEBI may also focus on the independence of clearing corporations by defining minimum and maximum shareholding thresholds for exchanges in their respective clearing corporations. Various issues such as new shareholders, public interest directors, default waterfall mechanism, and contributions to settlement guarantee fund have been holding back this proposal, but it is likely to be resolved soon.
Overall, the upcoming SEBI board meeting holds significant importance in terms of streamlining regulations and addressing key challenges in the market. The decisions taken during this meeting are expected to have a far-reaching impact on market intermediaries, investors, and various segments of the market. Stay tuned for more updates on the outcomes of the June 18 meeting.