Some of the Key Highlights of the SEBI’s Board Meeting

1. Introduction of a liberalised Mutual Fund Lite framework for passively managed schemes

The Board has approved the introduction of a liberalised Mutual Fund Lite (MF Lite) framework for passively managed schemes. Under this framework, the Board has relaxed the requirements relating to eligibility criteria for sponsors, including net worth, track record, profitability, responsibility of trustees, approval process and disclosures.

2. Enhancement of scope of Optional T+0 Settlement Cycle

The Board reviewed the performance of the Beta version of the optional T+0 settlement cycle. It enhanced its scope by approving an increase in the number of scrips eligible for trading from 25 to the top 500 listed companies in terms of market capitalisation. The optional T+0 settlement in the equity cash market will continue to co-exist with the extant T+1 settlement cycle.

3. Enabling faster Rights Issues along with flexibility of allotment to specific investors

With a view to facilitate ease of doing business, to enable faster Rights Issue along with the flexibility of allotment to specific investors and giving an investment opportunity to existing shareholders, the Board has approved the following –

• Rights issue must be completed within 23 working days from board meeting approving the rights issue
• Discontinuation of the current requirement of filing a draft letter of offer with SEBI
• Rationalisation of the content of Letter of Offer to contain only the relevant information w.r.t rights issue
• Dispensing with the mandatory requirement of appointment of a Merchant Banker by an issuer
• Stock Exchanges and Depositories to concurrently carry out activities of Registrar to an Issue
• Mandatory appointment of Monitoring Agency for all rights issue irrespective of issue size

4. Facilitating ease of doing business under SEBI (LODR) Regulations, 2015 and SEBI (ICDR) Regulations, 2018

The Board has approved the following key measures for facilitating ease of doing business for listed and to be listed entities by way of amendments to the SEBI (LODR) Regulations, 2015 and SEBI (ICDR) Regulations, 2018. Some of the key measures are as follows –

• Introduction of a single filing system for listed entities to file relevant reports, documents, etc., on one exchange, which will be automatically disseminated at the other exchange(s).
• Detailed advertisement of financial results in newspapers would be optional for listed entities.
• Providing additional time of 3 months to fill up vacancies in Board Committees at listed entities and to fill up vacancies in Board, Committees and Key Managerial positions at listed entities coming out of the CIRP under IBC.
• Disclosure of material events/information
• Harmonization of the provisions of ICDR and LODR Regulations with respect to thresholds for identification of material subsidiary, disclosures related to material litigation, material agreements, qualifications of compliance officer etc.
  

  5. Introduction of a regulatory framework for a new investment product/asset class

  The Board has approved amendments to the SEBI (Mutual Funds) Regulations, 1996, to introduce a new investment product under the existing Mutual Fund framework. The new investment product is intended to bridge the gap between mutual funds and portfolio management services regarding flexibility in portfolio construction.

  Click Here To Read The Full Press Release