Sebi Introduces Framework for Index Providers

Mumbai, Nov 25 (PTI) Markets watchdog Sebi on Saturday approved providing flexibility to Not for Profit Organisations (NPOs) in raising funds through the social stock exchange and also decided to introduce a regulatory framework for index providers.

These were among the decisions taken by the board of the Securities and Exchange Board of India (Sebi) during its meeting held here.

In a release, the regulator said flexibility will be provided for fund raising by NPOs through the social stock exchange.

In this regard, the minimum issue size in case of public issuance of Zero Coupon Zero Principal Instruments (ZCZP) for NPOs on the social stock exchange will be reduced to Rs 50 lakh from Rs 1 crore.

Among other decisions, a regulatory framework will be introduced for the index providers to foster transparency and accountability in governance and administration of financial benchmarks in the securities market.