SEBI to hold crucial meeting on Friday to discuss matters related to ease of doing business: Check full meeting agenda

Capital market regulator Securities and Exchange Board of India (SEBI) will be holding a crucial meeting on Friday, March 15, where the agenda will focus around issues related to ease of doing business. Apart from that, sources have said that there will likely be changes in rules related to IPOs. 

Here is the list of items that will likely be on the agenda during the SEBI meeting on Friday — 

 
1) Likely changes in rules related to IPOs

* Providing relief in the rule of determining minimum promoter contribution.

* To consider conversion, fully paid up CCS or DR conversion shares valid.

* Scope for IPO even with promoter contribution lesser than 20 per cent.

* Scope for promoter contribution without promoter tag

* Allowing DRHP re-filing if issue size increases/decreases

* Exemption from maintaining 1 per cent security deposit of the issue size

* In difficult situations, the permission to extend the bid period by 1 day

2. Relief in compliance rules for companies

* Relaxation possible in rules based on market cap ranking

* Mandatory recruitment of Key Managerial Personnel (KMP) in 3 months - likely to be extended to 6 months

* Relaxation in the rule of providing prior information of board meeting

* Rules of Risk Management Committee meetings likely to be relaxed

3. Same-day settlement

* Will reduce the risk of default for investors.

* Efficiency in the market will increase due to early availability of shares and funds.

* T+0, T+1 both will remain operational, T+0 trading till 1:30 PM 

 
4. Flexibility in trading plans for insiders

 * Blackout period likely to be abolished

 * 4 months instead of 6 to implement trading plan

 * Minimum coverage period will possibly be reduced from 12 to 2 months

 5. Bank Exposure Rules for Clearing Corporations

* Limit of up to 15 per cent for single bank exposure

* 10 per cent exposure limit on AA rating, 15 per cent on AAA rating

* Rs 5000 crore net worth, AA rating must for choosing bank.

6. Relief to select FPIs from stringent disclosure rules

* Relief possible for FPIs that have no promoter

* Relief to university funds or related endowment funds

* Relaxation also possible in disclosure related timeline 

7. Discussion on important proposals related to AIF

* Facility to pledge investments in infra companies

* Will help infra companies attract more investment

* Providing flexibility to AIF, VCF in illiquid investment
 

8. Relief possible in some rules related to REITs and InvITS