The Securities and Exchange Board of India (SEBI), in its first board meeting under new chairperson Tuhin Kanta Pandey, eased norms for foreign portfolio investors (FPIs), merchant banks and market infrastructure institutions (MIIs). At the same time, it also decided to set up a high-level committee (HLC) to review the current provisions of conflict of interest and disclosures pertaining to property, investments and liabilities for members and officials of the board.
The market regulator doubled the threshold for FPI disclosure from Rs 25,000 crore to Rs 50,000 crore. “Cash equity trading volumes have more than doubled between FY23 and FY25. In light of this, the board has approved a proposal to increase the applicable threshold limit,” said Pandey.
ALSO READFPI investment threshold for granular disclosures doubled to Rs 50,000 crore by SEBI
MIIs also got some relief on appointment of public interest directors (PIDs) and cooling-off period for key management personnel (KMP) and directors. The market regulator said that while the earlier process of appointment of PIDs requiring its prior approval would continue, it will no longer prescribe a cooling-off period for KMPs. Instead, the governing board of the MII has been given the responsibility to do the same.
However, if an MII decides against re-appointing an existing PID, it would have to record the rationale and communicate it to SEBI.
In a rare reversal of decision, the market regulator deferred the implementation of amendments proposed for merchant bankers, debenture trustees and custodians in the December meeting. The last meeting had approved that these entities would carry out other regulated activities as separate legal entity after obtaining registration confirmation from the respective regulatory authority within two years.
Investment advisors and research analysts have been provided some relief, in terms of fees. That is, they can now collect fees in advance up to one years, if the client – HUF and individuals –agrees to it. Earlier, they were allowed to charge advance fee for a maximum period of one and two quarters, respectively. For others, such as, non-individual clients, accredited investors and institutional investors, the fee shall be governed through bilaterally negotiated contractual terms.
Monday momentum! Sensex soars 1,000 points, Nifty jumps 308 points; Banks shine
The HLC, which has been formed will review and make recommendations for enhancing the existing framework (introduced in 2008) to manage conflict of interest,
» Read More
