Ajay Tyagi Chairman SEBI address media at SEBI Bhavan. (Source: BloombergQuint)
6 years ago
Feb 17, 2020
The Securities Exchange Board of India - currently in a board meeting - is set to reveal its decisions at in a press conference today at 4:30 p.m. This will likely be Ajay Tyagi's last meeting as Chairman of the market regulator.
Propose to amend MF regulations to provide for non-bank custodians for gold or gold-related instruments of gold ETFs.
Sponsor or an AMC shall invest in close-ended schemes as well, in order to bring uniformity across schemes. Currently, the investment by the sponsor or an AMC is mandatory in all schemes except close-ended schemes.
The SEBI board approved the insertion of a "suitable explanation to Regulation 79 (Manner of creating pledge in Depository) under SEBI (Depositories and Participants) regulations, 2018, that the word pledge shall include re-pledge of securities for margin and/or settlement obligations of the client or such other purposes specified by the board from time to time."
The board is likely to consider a measure around the fallout of Karvy Stock Broking Ltd. where it will bar the use of pool accounts for routing mutual fund transactions, according to a LiveMint report. The regulator will now permit only direct credit and debit of investor bank accounts for mutual fund transactions, the report said, in a move to make mutual fund transactions safer.
It will also finalise norms to address conflicts of interest and ensure the independence of proxy advisory firms, making recommendations on key company resolutions, and address issues of accountability of global proxy firms when they give opinions on Indian companies.
SEBI’s board is likely to have discussed a proposal to allow live testing of new products, services, and business models for selected customers by providing various relaxations and exemptions.
The move is aimed at facilitating the use of the latest financial technology innovations in capital markets, officials told PTI. Initially, all SEBI-registered entities will be eligible to participate in such a ‘regulatory sandbox’ (a live-testing environment), while fintech startups and other entities that are not regulated by SEBI may also be allowed at a later stage, but no exemptions would be granted from the existing investor protection framework, KYC and anti-money laundering rules.
The market regulator will contemplate proposals to attach a ‘difficult to recover’ tag for individual defaulters who are untraceable, according to a PTI report quoting SEBI officials.
According to the proposal, SEBI plans to attach a ‘difficult to recover’ tag for individual defaulters who are found to be ‘untraceable’ as also for cases facing parallel proceedings by other agencies or in various courts and tribunals. This separate ‘difficult to recover’ category is for cases where recovery of penalties and other dues from defaulters proves to be virtually impossible and the amount involved is not found to be worth an attempt beyond a point.
However, SEBI can initiate or continue its prosecution proceedings against the defaulters even after such a segregation and recovery procedure can be reopened in case there is any change in the prevailing parameters regarding the defaulter.
