At its much-anticipated board meeting on September 12, capital market regulator SEBI introduced the SWAGAT-FI — Single Window Automatic and Generalised Access for Trusted Foreign Investors — framework. The framework is aimed at providing low-risk foreign investors with an easier and faster route to investments on Dalal Street.
Here’s a quick take on all major decisions from the market watchdog’s latest board meeting:
SEBI Board Meeting September 12 | Relaxed minimum publish shareholding norms for big corporates
The market regulator has decided to ease rules for selling shares to the public and for maintaining public holding.
Add Zee Business as a Preferred Source
Currently, extremely strict rules are in place, like companies being required to quickly offload more shares in the market. Under certain conditions, big companies will be allowed more time to sell their equity.
While minimum public offer (MPO) norms determine the amount of shares that must be offered mandatorily in an IPO, minimum public shareholding (MPS) rules require listed companies to maintain a certain minimum percentage of shares available for public shareholding.
SEBI Meeting | Anchor reservation for registered life insurers and pension funds
Registered life insurance companies and pension funds will get a reserved portion among anchor investors.
IRDAI and PFRDA regulate life insurers and pension funds in the country, respectively.
SEBI Meeting | Related party transaction rules to be simplified
The regulator will ease the disclosure compliance for companies making smaller related party transactions (RPTs), reducing the paperwork required for such corporates under certain conditions.
SEBI Board meeting | IFSC retail schemes can be registered as FPIs
Retail mutual fund schemes operated under International Financial Services Centre (IFSC) regulations can now be registered as foreign portfolio investors (FPIs).
Resident domestic companies will be able to contribute up to 10 per cent in these funds.
Also, domestic mutual funds will be able to invest in foreign mutual funds or unit trusts, provided that they have exposure to Dalal Street securities.
Alternative investment fund (AIF) category for accredited investors
SEBI will create a dedicated category within the alternative investment fund (AIF) framework for accredited investors (AI-only schemes).
Large value funds (LVFs) will now be required to invest a minimum of Rs 25 crore, instead of the current Rs 70 crore.
SWAGAT-FI framework to provide reliable & low-risk foreign investors faster access to Dalal Street
The SWAGAT-FI framework is aimed at providing reliable and low-risk foreign investors with easier and faster access to the domestic capital market.
SEBI launches India Market Access portal
The regulator has rolled out a dedicated website (www.indiamarketaccess.in) aimed at enabling foreign portfolio investors to access information on all Dalal Street regulations under one roof.
Currently, information on Dalal Street rules and regulations is available at different sources.
SEBI Board Meeting | Mutual fund rules eased
The regulator has decided to classify real estate investment trusts (REITs) as equity.
What this means essentially is that REIT units will be treated like stocks, not like hybrid or debt-like instruments.
Currently, these instruments are treated as hybrid securities.
REITs represent ownership in commercial real estate assets.
Lower exit load for mutual funds
The market regulator has reduced the exit load — or the fee charged by fund houses from investors for redeeming their units before a specified period — from the current 5 per cent to 3 per cent.
Besides, distributors bringing in new investors from smaller towns will get incentives and additional commission for onboarding new women investors.
