5 major regulatory
changes have been approved by SEBI (Securities and Exchange Board of India) -
aimed at improving market efficiency, easing compliance and strengthening
investor protection.
1. Reintroduction
of open market buybacks through stock exchanges:
a. Safeguards
have been introduced. That includes mandatory utilisation of at least 40% of
earmarked funds during the first half of the buyback period. The
buyback must be completed within 66 working days.
b. Promoters
and their associates will not be allowed to participate, and their holdings
will remain frozen during the buyback period.
c. Sebi has
also made the appointment of a merchant banker optional, a move aimed at
reducing compliance costs.
2. Mutual funds allowed intraday borrowings to handle
short term cash flow issues like settlement timing differences, foreign
exchange settlements and mark-to-market obligations in derivatives, among other
operational requirements. It cannot be used for leverage and must
be repaid by the end of the trading day.
3. Faster
launch of AIF schemes under GARUDA: This new fast-track system
will speed up how Alternative Investment Funds (AIFs) launch new
schemes. Standard funds can be launched within 10 working days.
Expert/Angel Funds can be launched immediately after filing paperwork, skipping
the usual third-party banker review.
4. Municipal bond framework eased to deepen India's
municipal bond market:
a. Municipalities
will now be allowed to raise funds to refinance existing project debt.
b. Issuers
can offer discounts or extra interest to retail investors, senior citizens, and
women to attract more investors.
c. Lowering
of minimum investment amount to Rs 10,000 done for certain private bonds
to make them more affordable.
5. Easier transmission
of securities after death:
a. There
is no need for a mandatory "probate of will" if local laws allow it.
b. Simplified
documentation by combining multiple forms into a single document
c. Digital
death certificates with QR codes are now accepted for instant verification.
https://economictimes.indiatimes.com/markets/stocks/news/sebi-board-meeting-open-market-buyback-is-back-and-intraday-borrowing-for-mfs-5-key-decisions-investors-should-know/articleshow/131859649.cms?from=mdr
