Sebi approves trial run of same-day stock settlement – Times of India

by The Technical Blogs


MUMBAI: Markets regulator Sebi on Friday said that it would soon start a pilot project for moving to a T+0 settlement regime in the stock market on an optional basis, limited to 25 stocks and with a select few brokers. The board will again review the roll-out after three and six months from the date of introduction of this proposed faster settlement system.

Screenshot 2024-03-16 040601

Sebi in its board meeting that lasted till late evening also decided to ease certain disclosure requirements for foreign portfolio investors (FPIs), expanded the definition of promoter groups to determine promoter holding levels post and IPO, done away with security deposit requirement for public and rights offer of equities. It also directed to put in place specific rules to deal with market rumours, especially that impact a company’s stock price and eased some of the rules governing alternate investment funds (AIFs), Sebi said in a release post its board meeting.
The Sebi board also approved a proposal to exempt additional disclosure requirements for FPIs having more than 50% of their India equity portfolio in a single corporate group but the holding is in a listed company with no identified promoter. However, this exemption would come with certain conditions like the aggregate holdings of all such FPIs is less than 3% of the company’s equity capital.
Sebi also extended the timeline to provide documentary proof of material changes in an FPI to 30 days from seven days now. It also said that a foreign fund not wanting to renew its registration in India can dispose of their holdings in 180 days, from 30 days now. Even if the fund can’t fully liquidate its India portfolio, it would get another 180 days to do so, provided it pays 5% of the sale proceeds as penalty to Sebi’s Investor Protection and Education Fund (IPEF).
Sebi board also has done away with the requirement of 1% security deposit for public and rights offer of stocks. It also expanded the definition of promoter group for post-IPO promoter holding by including those non-promoter entities that hold 5% or more in the company after the close of the offer.
Relating to market rumours, Sebi said that promoters, directors, key managerial personnel and senior management of the company “should provide timely response to the listed entity for verifying market rumour.” The Sebi board also approved the proposal to recognise a stock exchange as the supervisory body for research analysts and investment advisers.
It also said that continuous disclosures by companies that are based on market capitalisation of the entities, will now consider the average market cap of six previous months ending on December 31 for determining which companies come under such market cap-based disclosures. Earlier it was based on the market cap of companies on just one day, on March 31.


Source link

Related Posts

Leave a Comment

Recent Posts

Pigeons swarm Las Vegas neighborhood, nesting at church Study finds adult female elk are badass and can’t be... Vacancy: some more elephants needed in the bush THE TECHNICAL BLOGS

Our Policies

Userful Links

Shop Stores

Copyright @2020  All Right Reserved - Designed and Developed by DSF SEO COMPANY