Sebi Introduces New Asset Class, Liberalizes MF Framework
By Rediff Money Desk, New Delhi Sep 30, 2024 22:13
Sebi's board approved a new asset class for high-risk investors, relaxed regulations for passive funds, and made changes to insider trading rules. Learn more about these significant decisions.
New Delhi, Sep 30 (PTI) Markets regulator Sebi's board on Monday cleared a proposal to introduce a new asset class for high-risk profile investors to bridge the gap between mutual funds and portfolio management services in terms of flexibility in asset construction.
In a statement issued after the board meeting, Sebi said its board has cleared a proposal to relax the regulatory framework for the passively managed mutual fund schemes to reduce compliance requirements.
Overall, the board has approved 17 proposals, including amendments to insider trading rules and relaxing eligibility criteria and compliance requirements for investment advisers and research analysts.
This is the first board meeting after the US-based short seller Hindenburg Research and the Congress party made allegations against Sebi's chairperson Madhbai Puri Buch.
Hindenburg accused Buch and her husband of having investments in offshore funds controlled by Vinod Adani, the brother of Adani Group chairman Gautam Adani, which were allegedly used to round trip funds and inflate stock prices.
Also, it was alleged that Sebi had amended rules pertaining to real estate investment trusts (REITs) in a way that benefited Blackstone, where Buch's husband was a senior advisor. Buchs and Sebi had denied the allegations.
Apart from these, the Sebi board approved a proposal to introduce provisions for "summary proceeding" in the intermediaries rules to handle certain violations of securities laws by intermediaries more swiftly and efficiently.
Also, it has rationalised the disclosure requirements in the offer document and reduced the rights issue processing time to make it a preferred fundraising route.
Additionally, Sebi has cleared a proposal that would allow promoters to transfer their rights entitlement to select investors during rights issues, potentially attracting more investment into the market.
In a statement issued after the board meeting, Sebi said its board has cleared a proposal to relax the regulatory framework for the passively managed mutual fund schemes to reduce compliance requirements.
Overall, the board has approved 17 proposals, including amendments to insider trading rules and relaxing eligibility criteria and compliance requirements for investment advisers and research analysts.
This is the first board meeting after the US-based short seller Hindenburg Research and the Congress party made allegations against Sebi's chairperson Madhbai Puri Buch.
Hindenburg accused Buch and her husband of having investments in offshore funds controlled by Vinod Adani, the brother of Adani Group chairman Gautam Adani, which were allegedly used to round trip funds and inflate stock prices.
Also, it was alleged that Sebi had amended rules pertaining to real estate investment trusts (REITs) in a way that benefited Blackstone, where Buch's husband was a senior advisor. Buchs and Sebi had denied the allegations.
Apart from these, the Sebi board approved a proposal to introduce provisions for "summary proceeding" in the intermediaries rules to handle certain violations of securities laws by intermediaries more swiftly and efficiently.
Also, it has rationalised the disclosure requirements in the offer document and reduced the rights issue processing time to make it a preferred fundraising route.
Additionally, Sebi has cleared a proposal that would allow promoters to transfer their rights entitlement to select investors during rights issues, potentially attracting more investment into the market.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- GTL Infrastructure
- 2.41 ( -4.74)
- 91845255
- Spicejet Ltd.
- 63.70 (+ 7.98)
- 83328500
- Standard Capital
- 1.67 (+ 9.87)
- 77646230
- Reliance Power L
- 48.67 (+ 4.98)
- 37099881
- Vodafone Idea L
- 10.36 ( -2.91)
- 34631406
MORE NEWS
Delhi Govt Begins Budget Prep for 2025-26:...
The Delhi government has initiated budget preparation for 2025-26, urging departments...
Sebi Approves 'Light-Touch' Rules for Passive...
Sebi board has approved relaxed rules for passive mutual fund schemes, aiming to...
RRBs to Boost Credit in Northeast India
Finance Minister directs Regional Rural Banks to increase credit disbursement under...