SEBI Board To Review Key Market Reforms, Clearing Corp Ownership, REIT Norms On June 18 — Profit Exclusive
Additionally, mutual funds may be allowed to increase their exposure to REITs and InvITs through equity schemes up to 20%.
Several important proposals are likely to come up for approval at SEBI’s board meeting scheduled for June 18, including renewed ownership norms for clearing corporations and classification of REITs and InvITs as equity for index inclusion.
In context of the ownership of clearing corporations, the regulator has been vocal about a possible demerger from their parent exchanges or a partial ownership of exchanges could be retained. However, as per people in the know, the exchanges are not in favour of changing the ownership structure.
The issue was supposed to be taken up in the last board meeting as well.
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. Furthermore, mutual funds may be allowed to increase their exposure to REITs and InvITs through equity schemes up to 20%. In addition, SEBI may ease compliance norms for these investment vehicles.
In the alternative investment fund space, SEBI may allow co-investments under separate schemes and enable AIF managers to provide advice on listed securities.
For foreign portfolio investors, SEBI is likely to consider easing rules for those investing solely in Indian government bonds.
The meeting may take up a proposal to simplify the qualified institutional placement process, reducing paperwork and streamlining fundraising by listed companies.
The board may also decide on a settlement scheme for commodity brokers connected to the NSEL case and deliberate on a mechanism for voluntary delisting of public sector undertakings.
Other items that could be taken up include operational matters, SEBI’s staff code on conflict of interest, vacancies in the enforcement department, progress on the NSE IPO, and a potential settlement framework for brokers involved in algo trading cases.
Additionally, the board is expected to discuss a separate mechanism for the voluntary delisting of government-owned companies. This may include fixed pricing and changes to the public shareholder approval process.
Some operational matters are also expected to be reviewed through an information memorandum during the meeting.
