SEBI Relaxes Rules for FPIs

• 16 Mar 2024

On 15th March, Securities and Exchange Board of India (SEBI) relaxed rules for FPIs, AIFs, IPOs, and uniform approach for market rumour verification.

Key Points

• Beta Testing T+0 Settlement Mechanism: SEBI to launch Beta version for limited scrips and brokers to test T+0 settlement mechanism.
• Stakeholder Consultation: Further consultation with stakeholders planned; progress review at three and six months.
• Exemption for FPIs: Exemption from additional disclosure requirements for foreign portfolio investors (FPIs) with over 50% India equity assets.
• Compliance and Due Diligence: Alternative Investment Funds (AIFs) mandated for specific due diligence of investors and investments for compliance.
• Uniform Rumour Verification: Objective criteria specified for rumour verification to address concerns about funding through AIFs.
• IPO Regulations: SEBI eliminates 1% security deposit requirement for public/rights issue of equity shares.
• Listed Companies Compliance: Market capitalisation-based compliance requirements determined on six-month average.
• Timeline Extensions: Extension of timelines for filling up vacancies, scheduling Risk Management Committee meetings.
• Infrastructure Investment Trusts (InvITs): Framework provided for issuance of subordinate units by privately placed InvITs.
• Regulatory Bodies Recognition: Recognition of stock exchange as Research Analyst and Investment Advisers Administration body.
• Listing Norms Extension: Mandatory applicability of listing norms for HVDLEs extended till March 31, 2025.
• Budget Approval: SEBI board approves budget for the financial year 2024-25.