look news india
Mumbai: Capital markets regulator Securities and Exchange Board of India (SEBI) will meet today on December 18, 2024 to protect the interests of investors and greater ease of doing business. There is a possibility of discussion and decisions on the proposals. These include listing of SME shares, insider trading norms, some digital platforms and the possibility of chairing performance verification agencies.
SEBI is likely to mandate greater transparency and accountability in listing in the SME segment. Improving disclosure on unpublished price-sensitive information and making it easier for registered companies to do business in terms of advertising their vendors and their services are likely to be settled with the discussions.
SEBI may introduce new proposals to encourage and protect retail investors in the SME listing sector. The proposals for pre-listing of companies include increasing the minimum application size from Rs 1 lakh to Rs 2 lakh, introducing a draw-of-lot allotment mechanism for non-institutional investors (NIIs) and increasing the minimum number of allotments from the existing 50. Is included. Upto 200.
Post-listing proposals include expanding the applicability of related party transaction provisions under the SME Listing Obligations and Disclosure Requirements (LODR) Regulation. With few exceptions, disclosure of the constitution and meetings of the board of directors as well as quarterly submission of financial and shareholding patterns has been made mandatory.
The SEBI board may also consider reviewing the definition of undisclosed price sensitive information under the Prohibition of Insider Trading (PIT) regulation and allow it to be expanded. The regulator decided to review it after its study found that companies were classifying the cases clearly mentioned in Regulation 2(1)(n) of the PIT Regulations as UPSI and thus substantively non-compliant with the law. Was doing.
In October this year, SEBI suggested a framework through which digital platforms can be recognized as Specified Digital Platforms (SPFs). Meanwhile, a decision on the formation of Performance Validation Agency (PVA) is also likely to be taken in the board meeting.
