Key highlights from the SEBI board meeting held today:
Changes in buyback regulations
Buyback through Stock Exchange Route:
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The minimum amount to be utilized when buyback is undertaken via stock exchanges is increased from 50% to 75%.
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Buyback through the stock exchange route to be phased out in a gradual manner
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Creation of a separate window on stock exchanges for undertaking buyback till the time buyback through stock exchange is permitted.
Buyback through Tender Offer Route:
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Permitting upward revision of buy back price until one working day prior to the record date.
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Reduction in timeline for completion of Buyback by 18 days by removing the requirement of filing draft letter of offer with SEBI and its observations.
Introduction of framework to facilitate Execution Only Platforms for direct plans of Mutual Fund schemes:
The Board has decided to introduce a regulatory framework for âExecution Only Platformsâ (EOP) for direct plans of Mutual Fund schemes to achieve the following objectives:
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Making it convenient for investors to make investments via EOPs
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To have investor protection mechanisms, cyber security requirements, pricing of services and grievance redressal.
Introducing the Investor Risk Reduction Access Platform:
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Stock exchanges to introduce the Investor Risk Reduction Access Platform.
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To cover the risks clients face if they are unable to square off their open positions and / or cancel orders pending at the stock exchange, particularly when the markets are volatile in the event of disruption of trading services provided by a Broker
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The platform is expected to be available from 3rd Quarter FY 2023-24.
Facilitating sustainable finance while safeguarding against âgreenwashingâ:
In the backdrop of increasing interest in sustainable finance in India as well as around the globe, SEBI undertook a review of the regulatory framework for green debt securities.
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Enhance the scope of definition of green debt security by including new modes of sustainable finance in relation to pollution prevention and control, Eco efficient products, etc
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Introduce the concept of blue bonds (related to water management and marine sector), yellow bonds (related to solar energy) and transition bonds as sub categories of green debt securities
SEBI has also made announcements regarding the following topics:
Streamlining the onboarding process to facilitate ease of doing business and reducing the time taken for registration of Foreign Portfolio Investors (FPIs)
Enhanced risk management framework for stock brokers designated as Qualified Stock Brokers (QSBs)
Strengthening focus and governance mechanisms in Market Infrastructure Institutions (MIIs)
Streamlining provisions related to tenure of auditor, computation of leverage, unclaimed/unpaid distribution and other provisions For REITs and InvITs
Introduction of governance norms for REITs and InvITs on the lines of corporate governance norms for listed companies
streamlining appointment of nominee director and specify public issue timelines.
Facilitation of participation by AIFs in Credit Default Swaps
You can refer to the full report here