SEBI Board meeting today: Preferential- rights issue combo, merchant banking, new asset class rules among others on agenda

The market watchdog SEBI's board meeting is scheduled for today. As per research team inputs amid all the turmoil facing the regulator, here are the policy matters that can be taken up for discussion today.

- Preferential and rights issue combo to be fast-tracked for issuance:

The process will render fundraising easier. It will also cut down the role of merchant bankers.  This will be a kind of combination of rights issues and preferential issues.

The whole idea is to make rights issues as the preferred route for fundraising by companies. Data shows that companies prefer the QIP and preferential issue routes to the rights issue because of the long timeline and other complexities.

- ICDR and LODR harmonisation: 

The board is also likely to deliberate on the issue of ease of doing business and the harmonisation of ICDR (Issue of Capital and Disclosure Requirements or LODR norms (listing obligations and disclosure requirements regulations).

- Merchant banking rules to also be overhauled 

Precisely the rules per se their line of activities which they can and which they cannot be performed will be streamlined.

Other agendas that will be on radar include approval in respect of the regulation concerning performane validation agency. Also, other matters that can be put are for bringing small non-compliances within the ambit of summary proceedings. Also, the board will deliberate on giving the approval in respect of rules listed out for Mutual Fund  Lite.

The board may also mull expanding the scope of 'connected person' as it deals with the persistent issue of insider trading. Furthermore, for high-risk investors, the board will discuss to set out the regulations for new asset class.