SEBI Proposes Expanding List Of Applicants To Informal Guidance Scheme

The Securities and Exchange Board of India proposed changes to the informal guidance scheme on Friday to expand the list of applicants that can seek guidance under the plan and enhance the fee for making an application.

In its consultation paper, SEBI has proposed that stock exchanges, clearing corporations, depositories and managers of pooled investment vehicles registered with it should be included in the list of eligible applicants who may seek guidance under the informal guidance scheme.

At present, only a limited category of entities, including listed companies and intermediaries, are eligible to request guidance under the scheme.

On rationalising fees, Sebi has proposed to raise the fees to Rs 75,000 from the current Rs 25,000 from an applicant while making an application under the IG scheme.

In case of rejection of an informal guidance application, a processing fee of Rs 5,000 is deducted while refunding the fee to the applicant. This has been proposed to increase to Rs 15,000.

It has also been proposed that the IG scheme should be revised to provide for a nodal coordination cell with a consolidated e-mail address that receives applications only through online mode and surveys the processing of the disposal of applications.

On the users' interface, the regulator has proposed that the applicant should be provided a 15-day period to respond to the clarifications requested by SEBI; the application may be rejected by the department if the applicant fails to do so.

The period taken up to 15 days may be excluded from the overall timeline of 60 days to respond to an application.

SEBI has proposed making use of electronic e-mail compulsory for departments as a mode of communication for seeking clarification from applicants.

SEBI has sought public comments till September 15 on the proposals.

(With Inputs From PTI)