SEBI To Test T+0 Settlement For 25 Stocks, Eases FPI Disclosure Norms
SEBI approved the launch of a beta version of the optional T+0 settlement, along with exempting additional disclosure requirements for certain FPIs.
Capital market regulator Securities and Exchange Board of India has approved the launch of a beta version of the optional T+0 settlement, along with exempting additional disclosure requirements for certain FPIs.
The 204th meeting of the SEBI Board was held in Mumbai on Friday. Here are the key outcomes from the meeting:
Optional T+0 settlement
Taking into account stakeholder feedback, the Board approved the launch of a beta version of the optional T+0 settlement for a limited set of 25 scrips and with a limited set of brokers.
The Board will review the progress at the end of three months and six months from the date of this implementation and decide on a further course of action.
Relaxation for FPIs
In order to facilitate ease of doing business, the Board approved a proposal to exempt additional disclosure requirements for foreign portfolio investors having more than 50% of their India equity AUM in a single corporate group.
In order to facilitate ease of doing business for FPIs, the Board approved a proposal to relax the timelines for disclosure of material changes by FPIs.
Going forward, material changes required to be notified by the FPIs will be categorized into two buckets - Type I and Type II.
Other highlights
In a move aimed at ensuring compliance as well as providing ease of doing business, Sebi has mandated that an Alternative Investment Fund (AIF), its manager and key management personnel should carry out 'specific due diligence' of both their investors and investments.
It has decided to do away with the requirement of a 1% security deposit in public/rights issue of equity shares for ease of doing business for companies coming for initial pubic offerings and fund raising.
"Promoter group entities and non-individual shareholders holding more than five per cent of the post-offer equity share capital to be permitted to contribute towards minimum promoters’ contribution without being identified as a promoter," it said.
The board also approved a uniformly assessed criteria to be specified for rumour verification in terms of material price movement of equity shares of the listed entity.
Market capitalization based compliance requirements for listed entities to be determined on the basis of average market capitalization of 6 months ending December 31, instead of single day’s.
a sunset clause of three years for cessation of applicability of market
capitalization based provisions is also being introduced.
