Sebi board meet today: Key things to watch out for

Sebi board meeting today: The board meeting of the capital markets regulator, the Securities and Exchange Board of India (Sebi), is scheduled to be held today (June 28). The agenda of the board meeting includes a range of topics such as a review of IPO listing timelines, a change in the mutual funds' total expense ratio (TER) rules, more stringent disclosure norms for foreign portfolio investors (FPIs), and other rules to curtail malpractices in stock markets.

In May, as per a report by Zee Business, Sebi proposed to reduce the IPO listing timeline from T+6 to T+3 (T here refers to the days of the closure of the issue). Sebi said that the proposed reduction in timelines for the listing and trading of shares would benefit both issuers as well as investors. "Issuers will have faster access to the capital raised, thereby enhancing the ease of doing business, and the investors will have an opportunity for early credit and liquidity in their investments," the regulator said in a statement. READ MORE

That apart, following the Adani-Hindenburg issue, the market regulator, on June 1, came out with a proposal mandating enhanced disclosures from high-risk Foreign Portfolio Investors (FPIs) to guard against possible circumvention of the Minimum Public Shareholding (MPS) requirement. This came after SEBI observed that some FPIs have concentrated a substantial portion of their equity portfolio in a single investee company. In some cases, these concentrated holdings have also been maintained for a long time.

In yet another development, Sebi in May proposed a uniform total expense ratio (TER) across mutual fund schemes in a bid to bring transparency to the costs charged to unitholders. At present, Sebi allows asset management companies to charge unitholders of mutual funds four additional types of expenses over and above the specified TER limits. These are brokerage and transaction costs, additional TER for distribution commission for inflows from B-30 (beyond the top 30) cities, goods and services taxes, and additional expenses for exit loads.

These aside, the board may also decide to increase the ambit of unpublished price-sensitive information (UPSI). It will also discuss the proposal to strengthen the investor grievance handling mechanism through the SEBI Complaints Redressal System (SCORES) and integrate it with the online dispute resolution (ODR) mechanism. Additionally, the F&O price band, rule changes in alternative investment funds (AIFs) and venture capital funds (VCFs), and expanding the definition of qualified institutional buyers (QIB) in debt securities are also listed for discussion.

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