SEBI held its 210th board meeting and made 19 key decisions to simplify regulations, improve ease of doing business, and bring more transparency.
Here’s a breakdown for all of us investors and traders:
1. Easier Delisting for Government PSUs
If the government already owns 90%+ in a PSU, they can now delist it by offering a 15% premium over floor price. No need to get approval from 2/3rd of public shareholders.
This makes PSU privatisation smoother and faster.
2. Startup Founders Can Keep Their ESOPs
Founders who got ESOPs a year before IPO can now keep or exercise them post-listing.
Big relief for startup promoters who used to lose their ESOPs at IPO time.
3. Demat Must Before IPO
All key shareholders like promoters, directors, and employees must hold shares in demat form before a company files its IPO.
Push towards a 100% paperless IPO process.
4. Simpler QIP Documents
Qualified Institutional Placements (QIPs) will now need shorter, simplified disclosures.
No more overload of data already available in public.
5. More Access to Social Stock Exchange
NGOs, trusts, and Section 25 companies can now register more easily.
Must raise funds within 2 years, and reporting norms are eased.
More room for social good with less red tape.
6. Merchant Bankers Can Do More
They can now offer financial services (like advisory, consulting) even if not regulated by SEBI, without needing a separate company.
One entity, more freedom.
7. Debenture Trustees Get Clarity
Clear rules now define their rights, responsibilities, and model documents.
Better protection for debt investors.
8. REITs & InvITs Made Smoother
Minimum investment for private InvITs is now ₹25 lakhs.
Holdcos can adjust cashflows, and reporting deadlines are now aligned.
More flexibility for infra and real estate funds.
9. Faster Certification Rule Updates
SEBI will issue certification requirements via circulars now, not official gazettes.
Faster updates, less waiting.
10. Custodians Can Offer Extra Services
Custodians can now provide more financial services in the same company, as long as they disclose clearly and manage conflicts.
No need for extra companies.
11. Co-Investment Now Allowed in AIFs
Category I & II AIFs can now let their investors co-invest in specific deals via a CIV (co-investment vehicle).
Easier for HNIs to join in select opportunities.
12. Angel Funds = Accredited Investors Only
Only Accredited Investors can now invest in angel funds.
Higher caps, 200+ investors allowed, and more freedom in follow-on rounds.
Cleaner, safer early-stage investing.
13. Relaxed Rules for G-Sec Focused FPIs
Foreign investors investing only in Indian government bonds get easier KYC and reporting.
More inflow, less hassle.
14. Simpler Docs for Portfolio Managers
Disclosure document split into “Static” and “Dynamic” sections.
Only the changed part needs to be sent to clients.
Clearer for investors, easier for managers.
15. NSEL Brokers Can Settle With SEBI
Brokers involved in NSEL trading can now settle their SEBI cases with fixed fines and short bans.
One-time clean-up for a long-pending issue.
16. Old Venture Funds Can Settle Too
VCFs that delayed winding up can settle with SEBI by paying fines, without affecting investor money.
Helpful for legacy fund closures.
17. No More Physical Shares for Corporate Actions
Corporate events like stock splits, mergers, etc. must now issue only demat shares.
Demat-only ecosystem gets stronger.
18. No Need to Keep Delivery Proofs
Companies no longer need to store proof of delivery for minor signature mismatch notices.
Saves paperwork and storage headache.
19. Liquid Mutual Funds Allowed as Deposit
Investment Advisers and Research Analysts can now use liquid or overnight funds instead of fixed deposits for SEBI-mandated deposits.
More convenience, still safe.
You can also check for the full circular here.