Indian equity markets experienced a significant decline of nearly 1.5% with small-cap and mid-cap stocks particularly affected. Investor concerns over market froth prompted a rush to sell riskier assets, leading to sharp drops in indices such as Midcap 150 and Smallcap 250.
The Sensex and Nifty fell by 1.23% and 1.51% respectively, with the latter witnessing declines in 43 out of 50 stocks. Mutual fund restrictions on small-cap and mid-cap schemes further dampened sentiment, contributing to a ₹13.5 lakh crore erosion in market capitalization.
SEBI Chief Madhabi Puri Buch announced that the combined value of REITs, InvITs, and municipal bonds in India is poised to match the country’s GDP. Currently, India’s equity market value is equivalent to one-time GDP.
Buch emphasized SEBI’s focus on making REITs and InvITs more accessible to smaller investors by lowering entry barriers. She referred to this strategy as the “sachetisation” of financial products, aiming for fractional ownership with minimal investment.
Meesho announces ESOP buyback worth ₹200 cr, making it the 4th buyback by them.
SEBI is set to meet with its Board on March 15. Things that are likely to be discussed are:
- Relaxing rules for FPIs- Relaxing disclosure timelines for material changes and granting exemptions from additional disclosures on detailed information.
- For AIFs and PMS- This move aims to deepen AIFs’ involvement in infrastructure development.
For Portfolio Management Services (PMS), the regulator suggests mandatory registration of distributors with the Association of Portfolio Managers in India (APMI) and digital onboarding of clients, eliminating handwritten confirmations of fee understanding to streamline oversight.
- T+0 Settlement- This initiative will make India the second country, after China, to adopt a one-day settlement cycle, contrasting with the typical two-day settlement period in other major economies.