Sebi Approves Sweeping Reforms Disclosure Rules, FPI Registrations, and “Finfluencer” Guidelines

The capital market regulator SEBI has made a number of significant regulatory reforms, including new rules for holding and investment firms, recommendations for the behaviour of ‘influencers,’ and regulations pertaining to voluntary delisting. With the intention of improving financial market governance and transparency, SEBI’s choices represent a major regulatory change.

Sebi Approves Sweeping Reforms Disclosure Rules

At a much-awaited board meeting on Thursday, June 27, the capital market regulator Securities and Exchange Board of India (SEBI) approved a number of substantial revisions to its rules and regulations. Approval of specific voluntary delisting regulations, specific rules for investment and holding firms, and instructions for the code of conduct were among the significant modifications of “finfluencers,” or influencers who focus on producing content on topics linked to money, like investing, personal finance, and financial literacy.

Below is an overview of some of the most important choices that the Sebi board made:

New rules of sebi, Sebi Approves Sweeping Reforms Disclosure Rules

• Approved entry scale and product success framework for derivatives involving single stocks
• The increase of the market-wide position limit (MWPL) to Rs 1,500 crore
• The volume of deliveries on average every day will rise to Rs 35 crore.
• Raising the median quarter order sigma size to Rs 75 lakh
• Three months from the circular’s issuance, existing F&O stocks will be received; the product success framework will take six months.
• Approved voluntary delisting guidelines
• The floor price of a fixed-price offer must exceed fifteen percent.
• Approved separate regulations for investment and holding company delisting
• A minimum of 75% of the investment is needed for a listed firm.
• Choose FPIs to receive a conditional exemption from additional disclosure requirements.
• University-linked endowments and registered university funds are examples of Category 1 FPIs that are exempt.
• State: Less than 25% of global equity AUM should be in Indian equities.
• AUM globally ought to be at least Rs 10,000 crore.
• Must have a home country tax registration as a non-profit organization.Rules pertaining to non-convertible redeemable preference shares were loosened
• The seven-day public comment period was shortened to one working day.
• Three days was the minimum subscription duration; it is now two working days.
• Market infrastructure institutions’ (MIIs’) approved third-party examination of their operations and the statutory bodies that oversee them
• Evaluation by a third party to be carried out every three years
• The first assessment will take place when the new regulations are in effect for a year.
• No automatic fine when trading stocks MDs and CTOs disagree on technical issues
• Previous regulations stipulated fines for MDs and CTOs.
• The measure was opposed by the industry on the grounds that it would make it more difficult to retain talent. (Sebi Approves Sweeping Reforms Disclosure Rules)

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