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Mumbai: The Securities and Exchange Board of India (SEBI), after considering the views and representations of brokers and other stakeholders, has now approved the implementation of T Plus zero settlement transactions in shares on a trial basis in the stock markets with immediate effect. , It has been decided to implement this agreement on an optional basis only for 25 stocks and some brokers. Along with this, SEBI has given required relaxation in disclosure rules to Foreign Portfolio Investors (FPIs).
As per the decision taken in the SEBI Board meeting, SEBI is currently implementing the beta version of T Plus Zero Settlement on a limited and optional basis. For this, consultation will continue with various stakeholders and users. SEBI said that the progress of this agreement will be reviewed every three months and six months and further steps will be taken thereafter.
Meanwhile, in other decisions taken at SEBI's board meeting late last night, FPIs have been exempted from additional disclosure requirements, subject to certain conditions, if they hold more than 50 per cent of equity assets under management in the same corporate group. .
With this, it has been decided that Alternative Investment Funds, their managers and key management personnel will have to conduct due diligence of both their investors and investments to ensure compliance and ease of doing business. SEBI has also taken steps to ensure that investors and investments are not hampered by any financial norms in response to concerns over funding through AIFs. SEBI says it will provide regulatory flexibility to implement ease-of-doing-business proposals related to AIFs with such due diligence requirements.
For ease of doing business, SEBI has decided to waive the requirement of one per cent security deposit or rights issue of equity shares to the public for companies raising IPOs and funds. Promoter group companies and non-individual shareholders holding more than five per cent of the post-offer equity share capital are also allowed to contribute the minimum promoter share without being identified as promoters. Also Mandatory Convertible Debentures converted equity shares held for one year prior to filing of DRHP can be counted towards meeting the minimum promoter contribution requirement.
SEBI has also made some changes related to the existing compliance requirements to make doing business easier and more flexible for listed companies. In which the market capitalization based compliance requirement for listed companies will be determined on the basis of average market capitalization of six months ending 31st December instead of single day market capitalization as on 31st March. Along with this, a three-year sunset clause will be introduced to prevent market capitalization based provisions from being implemented.
The time limit for filling vacant posts of administrative officers which require the approval of the directing authorities will also be extended from three months to six months. Along with this, in other decisions, the maximum permissible period between two consecutive meetings of the Risk Management Committee will be increased from 180 days to 210 days, so that listed companies can get flexibility in deciding the meeting schedule.
Other decisions approved by the SEBI Board have allowed a framework for issuance of subordinate units by private placement INVITs (Infrastructure Investment Trusts). Further, Niankar has decided to accredit stock exchanges as Research Analysts Administration and Supervisory Body (RASB) and Investment Advisors Administration and Supervisory Body (IAASB).
The deadline for mandatory implementation of listing norms for high value debt listed entities has been extended to March 31, 2025. Along with this, the board has approved the budget of SEBI for the financial year 2024-25.
