Sebi Approves Reforms, Enhances Mutual Fund Transparency

Mumbai, Dec 17 (PTI) Market regulator Sebi at its board meeting on Wednesday approved wide-ranging reforms, including a proposal to simplify the offer document by companies seeking to raise funds.

It also cleared a proposal to enhance mutual fund transparency by breaking down Total Expense Ratio (TER), said a release.

The proposal to simplify the offer document summary will enable investors to make informed decisions, it added.

It also allowed debt issuers to offer incentives in public issues to certain categories of investors.


Among other key proposals, the board cleared a recommendation regarding a framework to reduce the compliance burden of companies with large debts by raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to Rs 5,000 crore from the current Rs 1,000 crore.

This is the fourth board meeting chaired by Sebi chief Tuhin Kanta Pandey, who assumed office on March 1.

In its board meeting, the regulator approved a proposal to separate statutory charges like Securities Transaction Tax (STT), stamp duty, and GST from the Total Expense Ratio (TER) to enhance transparency for investors by providing a clearer understanding of all costs involved.

The Sebi board also reviewed recommendations of the high-level panel on conflict of interest, disclosures of assets by its senior officials.