SEBI Board Meet Highlights: New Buyback Norms, ASBA-Like Route For Secondary Markets And More

SEBI will introduce the process for returning of papers in case of filings for initial public offering.

• There are some merchant bankers who are repeat offenders. They are not comprehensive in filing DRHP for multiple issues, Buch said.

• "We will introduce the process of returning the papers incase of incomplete papers," she said.

SEBI has amended issue and listing of Non- Convertible Securities regulations.

• Issuers of debt securities must incorporate provisions in the Article of Association casting accountability on the board of directors to appoint a person nominated by the Debenture Trustee as director in the event of default.

• Amendments are to be made in the Debenture Trust deed as well.

• Existing issuers to do the needful by Sep 30, 2023.

REITs and InvITs will now be required to comply with corporate governance norms applicable to listed companies.

• Tenure of auditor of REIT/InvIT to be till 5th AGM.

• Investment by REIT/InvIT in overnight fund to be considered as cash/cash equivalent to compute leverage.

• SEBI will designate certain stock brokers as Qualified Stock Brokers based on identified parameters.

• They will be mandated to comply with enhanced risk management practices, will be subject to enhanced monitoring.

• Set of 16 brokers to be classified as Qualified Brokers

SEBI made changes to ease onboarding of Foreign Portfolio Investors.

• Time taken for granting registration to FPIs to be reduced by accepting scanned copies of forms, applications etc

• Digital signature of FPIs to be accepted for registration

• SWIFT mechanism to be permitted for certification

• Depositories allowed to verify PAN via Common Application Form

Public Interest Directors for MIIs to be appointed based on skillset in technology, law/regulatory, finance and accounts.

• Yearly evaluation of internal functioning and statutory commitments of MIIs will be required.

• MIIs will be required to set up an Investment Committee.

• This new statutory committee to evaluate investments, including capital expenditure, CSR activities etc.

• KMPs to cover employees of the MII based on the importance of the activity in addition to their relative hierarchy.

• Clear segregation of functions and roles of KMPs mandated to increase accountability.

• A quarterly report to be submitted by Chief Regulatory Officer every six months

• SEBI will set up an investor risk protection access platform for investors to square up open position if broker operations are disrupted.

• Disruption may pose a risk to open positions/pending orders.

• The platform will be available from FY2023-24.

SEBI Chairperson Madhabi Puri Buch said that Market Infrastructure Institutions acts as the first level of regulator and will be categorised in three verticals.

• The three role of MIIs needs to be delivered.

• The changes in MIIs will involve structure, code of conduct of KMPs and governance, she said.

• MIIs to be categorised into 3 verticals - critical operations, regulatory compliance/risk management; and other functions like business development.

• KMPs heading first two verticals to be at par in hierarchy with those of the third vertical.

• AIFs can now participate not just as protection buyers but also protection sellers.

• The regulator has specified the types of transactions in Credit Default Swaps by AIFs.

SEBI introduces regulatory framework for Execution Only Platforms for direct plans of Mutual Fund schemes.

• New rules will make it convenient for investors to make investments via EOPs

• It will have investor protection mechanism, cyber security requirements, pricing of services and grievance redressal.

Separate window will be created on stock exchanges till the time buybacks via stock exchanges remain permitted.

• SEBI review of the draft letter of offer will not be required for buybacks via Tender Offer route.

• Upward revision of buyback price is now permitted when the company buybacks shares via Tender Offer route.

SEBI approved changes to its Buyback Regulations.

• Buyback via stock exchanges to be phased out in a gradual manner.

• The minimum amount to be utilised when buyback is undertaken via stock exchanges is increased from 50% to 75%.

• Removing requirement of filing draft letter of offer and allowing upward revision of price until one working day prior to the record date.

The Securities and Exchange Board of India is set to clear several proposals, including changes in the share buyback rules and tighter disclosure norms.

The SEBI Board is set to meet on Tuesday and is likely to clear stronger regulations for market infrastructure institutions as well.

The market watchdog had released a consultation paper and sought comments until Dec. 1.

The committee headed by Keki Mistry recommended phasing out buybacks of shares through the open market. It further proposed a separate window on the stock exchange for undertaking buybacks through this route and harmonising it.