SEBI comes forward to rescue security investors' interest

The Securities and Exchange Board of India (SEBI) has announced new relief measures to reduce the compliance burden on market participants amid the coronavirus pandemic. To protect the interests of investors in securities and to promote the development of, and to regulate the securities market, SEBI has allowed extension in timelines for certain disclosures and implementation of certain policy initiatives pertaining to Mutual Funds. The market regulator has been steadily relaxing compliance requirements for different market intermediaries after having extended results disclosure timelines for listed companies last week.

Exercising its powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 SEBI informed about its decision in a written statement citing, "In light of difficulties expressed by AMCs, the access control presently exercised in the AMC’s dealing room including call recording of deals is temporarily relaxed subject to checks and balances including electronic confirmation by way of email or other system having audit trail are in place." SEBI went on to add that all schemes (NFO) where the observation letter was issued by SEBI and yet to be launched shall have a validity period of one year from the date of SEBI letter. All new schemes (NFO) where the final observation letter will be issued shall have a validity period of one year from the date of the SEBI letter.

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Hailing the SEBI's decision for ensuring the protection of the security investors Kanwar Vivek -  Chief Executive Officer at YES AMC said, "In these adverse times it is very appreciable that our regulator SEBI has allowed extension in timelines for certain disclosures and implementation of certain policy initiatives pertaining to Mutual Funds. The Equity and Fixed Income markets are themselves in a volatile and correction phase in line with the Global scenario. Our Regulator & Finance Ministry is taking enough steps which are definitely positive for the Indian Financial Markets to address the current situation. We would advise staying invested in the Markets and if liquidity is available with the clients then continue investing in a staggered manner keeping the long term horizon in mind.”