SEBI Board Meeting Decisions

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.