News Excerpt:
SEBI board discusses new delisting rules, AIF regulations, NPO fundraising, small & medium REITs and Index Provider Framework.
Highlights of the SEBI board meeting decisions:
New Delisting Regulations:
- SBI has refused to approve the new delisting regulations due to the non-availability of sufficient data.
Regulatory Framework for Index Providers:
- SEBI announced the introduction of a regulatory framework for index providers.
- It aims to ensure transparency and accountability in the governance of financial benchmarks in the securities market.
NPO Fundraising on Social Stock Exchange:
- The board approved the flexibility granted to not-for-profit organisations (NPOs) in fundraising through the social stock exchange.
- Reduction in minimum issue size for public issuance of Zero Coupon Zero Principal Instruments (ZCZP) by NPOs on SSE, from Rs.1 Crore to Rs. 50 lakh.
- Minimum application size reduced to ₹10,000 from ₹2 lakh.
- NGOs are allowed to disclose their past social impact report in fundraising documents.
- More NGOs became eligible for registration and fundraising through issuing and listing ZCZP on SSE.
Small and Medium REITs (SM REITs):
- Online platforms offering fractional ownership of real estate assets to be regulated by SEBI.
- Registration under the framework for small and medium Real Estate Investment Trusts (REITs).
Alternative Investment Funds (AIFs) Regulations:
- Extension of the mandate for appointment of a custodian, currently applicable to schemes of Category III AIFs and schemes of Category I and II AIFs with a corpus of more than ₹500 crore, shall be extended to all AIFs.
- From September 2024, fresh investments made by an AIF will be made in dematerialised form.
