SEBI Shortens Timeline For AMCs To Upload Draft SIDs To Eight Days

Market regulator SEBI on Friday announced the simplification of the framework for asset management companies, reducing the timeline for uploading draft Scheme Information Documents to just eight working days, down from the previous 21 days.

This change is aimed at streamlining the process, reducing timelines, and improving investor protection while also easing compliance for AMCs.

Previously, AMCs were required to upload draft SIDs on SEBI's website for 21 working days to invite public comments. Over time, the regulator has standardised and updated the format and content of SIDs to enhance communication with investors.

With this new circular, SEBI has shortened the required upload period for draft SIDs on its website to just eight working days.

AMCs can file final offer documents (SID and KIM) after this period.

These changes are effective immediately, the Securities and Exchange Board of India said.

Market regulator SEBI on Friday also introduced a uniform data-sharing policy for stock exchanges, clearing corporations, and depositories, classifying data into publicly shareable and non-public categories for research purposes.

The policy aims to strike a balance between ensuring data accessibility for research and maintaining privacy and confidentiality, thereby fostering transparency and protecting market integrity.

This move follows SEBI's earlier initiative in February 2022, which mandated the free dissemination of certain data while clearly identifying chargeable data.

SEBI's board on Wednesday approved a series of proposals for stringent oversight of small and medium enterprises looking to raise capital through initial public offerings, bringing the rules for Small and Medium Enterprises closer to those of mainboard IPOs.

The new regulations require that an issuer must have an operating profit of Rs 1 crore for at least two out of the last three financial years to be eligible for an IPO, the markets regulator said in a statement late on Wednesday after its board meeting.

Additionally, the offer for Sale by selling shareholders in SME IPOs will be capped at 20% of the total issue size, and shareholders cannot sell more than 50% of their holdings.