Sebi Boosts Market Participation with New Measures

Mumbai, Sep 12 (PTI) Following are the highlights of decisions taken at the Sebi's board meeting on Friday:



*Easier IPO route for large firms: Minimum public offer size lowered for very large companies, with more time allowed to meet minimum public shareholding norms.


*Greater Anchor Investment: Anchor investor allocation raised from one-third to 40 per cent of the public issue.



*Trusted Investor Access: Single-window clearance to be offered to trusted foreign investors, such as central banks, sovereign wealth funds, and regulated global institutions.


*Related party transactions: Thresholds revised for shareholder approval requirements.



*FPIs in IFSCs: Retail schemes in International Financial Services Centres (IFSCs) can now register as foreign portfolio investors (FPIs).


*Flexible AIF Framework: A New category of Alternative Investment Funds (AIFs) created exclusively for accredited investors, with relaxed regulations.


*Relaxations for large value funds: Minimum investment threshold for accredited investors cut from Rs 70 crore to Rs 25 crore.


*REITs reclassified: Real Estate Investment Trusts (REITs) to be treated as equity, while InvITs remain hybrid instruments for the purpose of investments by mutual funds and specialised investment funds.


*Boost for MF distributors: Distributors to receive up to 1 per cent incentive for net inflows from beyond the top 30 cities, plus extra commission for investments by women investors.


*Governance and oversight: Regulatory framework for registrars to be reviewed; amendments approved for investment advisers, research analysts, and market infrastructure institutions.

These reforms are expected to deepen capital markets, enhance investor protection, and attract more domestic and international capital.