Some highlights from the SEBI board meeting held on 15th March.
Launch of Beta version of optional T+0 settlement
Starting from March 28th, The Board approved the launch of a Beta version of optional T+0 settlement, for a limited set of 25 scrips, and with a limited set of brokers.
The Board will review the progress at the end of three months and six months from the date of this implementation, and decide on further course of action.
‘Stock Exchange’ to be recognized as a body for administration and supervision of Research Analysts and Investment Advisers
The Board approved the proposal to recognize a stock exchange as a “Research Analyst Administration and Supervisory Body” (RAASB) and “Investment Advisers Administration and Supervisory Body” (IAASB).
As in the case of Investment Advisors, the RAASB framework will be fee-neutral to the Research Analysts.
Further, to provide ease of doing business and to ensure smooth operationalization of the RAASB/IAASB framework and prevent disruption, the Board approved the deemed enlistment of existing registered RAs/IAs.
Facilitating a uniform approach to the verification of market rumors by equity-listed entities
Based on the discussions with the Industry Standards Forum (ISF) and consultation with stakeholders, a proposal was presented to the Board which approved the following to facilitate a uniform approach to the verification of market rumors by equity-listed entities:
Rumor about the transaction wherever pricing norms have been prescribed under SEBI Regulations, has to be confirmed within 24 hours from the trigger of material price movement.
Promoters, directors, key managerial personnel, and senior management to provide timely responses to the listed entity for verifying market rumors.
Unverified events or information reported in print or electronic media are not to be considered as ‘generally available information’ under SEBI (Prohibition of Insider Trading) Regulations, 2015
Facilitating ease of doing business for companies coming for IPOs / fundraising
To facilitate ease of doing business for companies coming for IPOs / fundraising, the Board has approved the following amendments to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018:
Doing away with the requirement of a 1% security deposit in public/rights issue of equity shares.
Promoter group entities and non-individual shareholders holding more than 5% of the post-offer equity share capital are to be permitted to contribute towards minimum promoters’ contribution (MPC) without being identified as a promoter.
Equity shares from the conversion of compulsorily convertible securities held for a year before filing the DRHP, are to be considered for meeting MPC requirement.
The increase or decrease in size of an offer for sale (OFS) requiring fresh filing shall be based on only one of the criteria i.e. either issue size in rupees or number of shares, as disclosed in the draft offer document.
Flexibility in extending the bid/offer closing date on account of force majeure events by a minimum of one day instead of the present requirement of a minimum of three days.
Facilitating ease of doing business for listed companies – ongoing compliance requirements
Market capitalization-based compliance requirements for listed entities are to be determined based on an average market capitalization of six months ending December 31, instead of a single day’s (March 31) market capitalization.
Further, to ease the compliance requirements, a sunset clause of three years for cessation of applicability of market capitalization-based provisions is also being introduced.
You can check out the full details here:
