SEBI Relaxes Rules for FPIs

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.