SEBI Board Meeting: Chairperson Pandey Clarifies PSU Delisting Norms, Founders Owning ESOPs At IPOs And More

Here are the outcomes of the Securities and Exchange Board of India's board meeting.

Follow the outcomes of SEBI's board meeting here. (Photo: Vijay Sartape/NDTV Profit)

The Securities and Exchange Board of India convened its board meeting on Wednesday, with a primary emphasis on enhancing the ease of doing business for market participants. The board approved co-investment opportunities for the alternate investment fund industry, and easier compliance norms for research analysts and investment advisors.
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SEBI Board Meeting Outcome Live: Watch The Presser Here

SEBI Board Meeting: The End

We come to an end of today's SEBI meet coverage. See you at the next meeting!

SEBI Board Meeting Live: Key Highlights

Here are some of the key takeaways from the meeting:

  • Approved easier norms for the voluntary delisting on government firms.

  • Confirmed co-investment opportunities for the alternate investment fund industry.

  • Approved easier compliance norms for research analysts and investment advisors.

  • Okayed norms for ease of doing business for portfolio managers.

  • Allowed the founders of startup companies to retain employee stock ownership plans that they were granted at least a year before a firm's initial public offering.

SEBI Board Meeting Live: On Startup Founders And ESOPs

The Securities and Exchange Board of India approved a proposal to allow the founders of startup companies to retain employee stock ownership plans that they were granted at least a year before a firm's initial public offering. Catch all updates on the same here.

SEBI Board Meeting Live: Dive Deep Into PSU Delisting Norms

Read more on SEBI's approval for the voluntary delisting of government PSUs here.

SEBI Board Meeting Live: Clearing Corporations Should Be Independently Funded

Clearing corps should be independently funded. The ownership can still be with exchanges, said Pandey.

Source: Presser

SEBI Board Meeting Outcome Live: Presser Ends

The SEBI post-meet press conference has ended.

SEBI Board Meeting Live: No Proposal On Clearing Corporation Equity Shareholding

There is no proposal for clearing corporations equity shareholding, said Chairperson Pandey on the topic of clearing proposals of demerger from parent exchanges.

The issue of demerger was one of the the reasons for NSE IPO delay as per a SEBI letter.

SEBI Board Meeting Outcome Live: Chairperson Pandey On Merchant Bankers Benefits

If merchant bankers are doing an activity that is regulated by any other financial regulator, that authority will deal with it, clarified Pandey. For unregulated activities, investors will be informed that there will be no grievance mechanism, he added.

Source: Presser

SEBI Board Meeting Outcome Live: Regarding Delisting Of Government Firms

This is for entities where the holding of the promoter is huge, clarified Pandey. This could be due to legacy or other reasons, he stated.

SEBI is allowing special measures, but ease is not extended to banks and insurance companies, he added.

Source: Presser

SEBI Board Meeting Outcome Live: Regarding Ease In QIP Document Placement Norms

Giving concise disclosures is allowed, said Chairperson Pandey. Public consultations on all changes were done, and they were approved after releasing a consultation paper, he added.

Source: Presser

SEBI Board Meeting Live: On Dematerialisation Of Securities Before DRHP

Promoters, selling shareholders, key managerial personnel, directors and even employees will have to dematerialise their holdings before IPO, said Pandey.

Source: Presser

SEBI Board Meeting Outcome Live: SEBI On Startup Founders Holding ESOPs Post Listing 

The board has not approved the consultation that startup founders should be able to hold onto their ESOPs after listing, said Pandey.

Source: Presser

SEBI Board Meeting Outcome Live: Presser Commences

Tuhin Kanta Pandey, the Chairperson of SEBI, commences post-meet press conference.

SEBI Board Meeting Outcome Live: Merchant Bankers To Benefit

Merchant bankers will be allowed to undertake several activities not regulated by SEBI.

SEBI Board Meeting Outcome Live Updates: Startup Founders Given Benefits

Easing of norms approved for startup founders to hold Employee Stock Ownership Plans. Holding ESOPs won't be an obstacle to listing now.

SEBI Board Meeting Live Updates: Norms For PSU Delisting Approved

SEBI approved easier norms for the voluntary delisting on government firms. This was brought to help firms with low public float. The approval provides for easier norms than following the whole reverse book building process.

NDTV Profit had reported the same earlier.

SEBI Board Meeting Live Updates: Norms For Ease Of Doing Business

Norms for ease of doing business for portfolio managers have been confirmed by the board.

SEBI Board Meeting Live: Co-Investment Opportunities For AIFs Confirmed

The board approved co-investment opportunities for the alternate investment fund industry. This means investors in an AIF will be able to get additional shares of the investee company.

SEBI Board Meeting Live: Analyst Compliance Norms Approved

The board approved easier compliance norms for research analysts and investment advisors.

SEBI Board Meeting Live: Approves Settlement Scheme For NSEL Trading Brokers

SEBI Board Meeting Live: Norms For QIP Document Placement Approved

SEBI Board Meeting Live: Separate Co-Investment Vehicles For AIFs On The Cards

SEBI is proposing a new model where AIFs can launch a separate CIV for each co-investment opportunity. These CIVs will be linked to the main AIF but will function as separate schemes with their own registration.

SEBI Board Meeting Live: Issues With PMS-Based Model

SEBI’s working group on 'Ease of Doing Business' found several issues with the current PMS-based co-investment model. These include increased costs, complex paperwork, delays in deal closures, and a lack of flexibility. Foreign funds, not subject to these constraints, have an advantage over domestic fund managers when competing for big-ticket deals in India.

SEBI Board Meeting Live: Tighter Listing Norms Long Overdue

"As an active investor in the SME segment, I believe that tighter listing norms are not only necessary but long overdue. The next phase of SME fundraising must be driven by credibility as much as by capital," said Highbrow Securities' Singh.

"And while PSU delisting guidelines or clearing corporation caps may seem technical, together they underscore SEBI’s broader goal: building a market resilient not just to volatility, but to complacency," he added.

SEBI Board Meeting Live: REITs Likely To Be Discussed

The board is also expected to discuss treating Real Estate Investment Trusts and Infrastructure Investment Trusts as equity instruments for the purpose of index inclusion.

SEBI Board Meeting Live: How Would Proposed PSUs Delisting Look?

SEBI has proposed a separate delisting process just for PSUs. Only PSUs where the government and other public-sector promoters already hold 90% or more of the total shares would qualify. 

These companies would not need to meet the minimum public shareholding rule before delisting. They would also be allowed to exit the market at a fixed price — this price would still be at least 15% higher than the calculated floor price. However, as a relief, it wouldn’t need to follow the full reverse book-building process.

SEBI Board Meeting Live: Why Do Government PSUs Look To Delist?

Several PSUs face challenges such as low public shareholding, outdated business models, weak future prospects, and inflated market prices caused by low free float, making delisting financially burdensome for the government. To address these issues and ease the delisting process for such PSUs, SEBI has proposed establishing a separate framework specifically for voluntary delisting.

SEBI Board Meeting Live: Verified UPI IDs Signal Proactive Approach To Investor Approach

"SEBI's upcoming board meeting is more than a routine regulatory check-in, it could mark a pivotal shift in how Indian capital markets balance access, oversight, and accountability," said Tarun Singh, MD and Founder, Highbrow Securities.

"Tools like verified UPI IDs and the new ‘SCORES’ app signal a proactive approach to investor protection," he added.

SEBI Board Meeting Live: AIF Industry Reforms On The Cards

Suggestions were made for AIF investors to have co-investment opportunities in unlisted companies through a co-investment vehicle, as per the May 6 proposal.

Read the whole story here.

SEBI Board Meeting Live Updates: Guidelines For Government Firm Delistings Likely

The markets regulator suggested a special framework to make it easier for the government to delist PSUs from the stock market when the government already owns at least 90% of the company, in a proposal on May 6.

Also Read: SEBI Board Meeting: Delisting Relaxations For Government Firms, Relief For Startup Founders Likely

SEBI Board Meeting Live Updates: Focus On Ease Of Doing Business

The Securities and Exchange Board of India is set to convene its board meeting on Wednesday, with a primary emphasis on enhancing the ease of doing business for market participants.

Stay tuned for updates with NDTV Profit here.

Also Read: SEBI Board Meeting: Easier Appointment Norms For Public Interest Director Likely

Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
WRITTEN BY
Divya Prata
Divya Prata is a desk writer at NDTV Profit, covering business and market n... more
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