SEBI Approves New Reforms for Capital Markets and Investment Advisors. Check out the important ones here
Yesterday, SEBI informed about some major regulatory changes . These changes are crucial to be noted by stock market enthusiast and Finance Professionals.
SEBI has introduced 17 reforms aimed at enhancing capital market regulations and promoting growth.
Here’s a condensed version of SEBI’s regulatory changes:
1. Mutual Funds Lite (MF Lite): This framework simplifies the entry for passive mutual fund schemes by relaxing requirements for sponsors and easing approval processes.
2. Rights Issue Process: The timeline for rights issues has been significantly reduced from 317 days to 23 working days, streamlining participation for existing shareholders.
3. T+0 Settlement: The optional T+0 settlement cycle has been expanded from 25 to the top 500 listed companies (based on market capitalization), enhancing liquidity.
4. Connected Person Definition: The definition of “connected person” under insider trading rules has been broadened to include partners and household members of connected individuals, improving enforcement against insider trading.
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5. Trading Options: New secondary market trading options have been approved, allowing the use of UPI block mechanisms or 3-in-1 trading facilities.
6. Tighter ODI Disclosure Norms: Disclosure requirements for Offshore Derivative Instruments (ODIs) have been tightened to align with foreign portfolio investor regulations.
7. Investment Advisors (IAs) and Research Analysts (RAs): Eligibility criteria for IAs and RAs have been relaxed to boost registration and meet increasing domestic demand.
Here’s a link to read the full circular – SEBI | SEBI Board Meeting
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