Market watchdog, SEBI, on Saturday refused to approve the new delisting regulations, citing the lack of data available. Apart from this, the SEBI board announced decisions affecting NGO fundraising, regulations for index providers, operation of alternative investment funds (AIF), etc.
These decisions were taken by the board of the Securities and Exchange Board of India (Sebi) during its meeting held in Mumbai on Saturday. Here are the key decisions taken by the SEBI board during its meeting.
SEBI Board meeting key highlights
Regulatory framework for index providers
The market regulator announced the introduction of a regulatory framework for index providers. The framework will be introduced to ensure transparency and accountability in the governance and administration of financial benchmarks in the securities market.
Flexibility to NGOs for fundraising
The board also approved providing flexibility to not-for-profit organizations (NPOs) in raising funds through the social stock exchange.
To boost NGO fundraising on the Social Stock Exchange, the SEBI board approved the reduction in minimum issue size in case of public issuance of Zero Coupon Zero Principal Instruments (ZCZP) by NPOs on SSE from Rs.1 Crore to Rs. 50 lakh. The minimum application size was also reduced to ₹10,000 from ₹2 lakh.
Apart from this, SEBI allowed NGOs to disclose their past social impact report in the fundraising document. More NGOs will be made eligible for registration and fundraising through the issuance and listing of ZCZP on SSE by permitting entities registered under section 10(23C) and 10(46) of the Income Tax Act, said SEBI in its press release.
Facilitation of Small and Medium REITs (SM REITS)
Online platforms offering fractional ownership of real estate assets will be regulated by SEBI. Moreover, they will be registered under the framework for small and medium reits, according to the SEBI press release.
In a press statement issued after its quarterly board meeting, the Securities and Exchange Board of India (SEBI) also said that all fresh investments by alternate investment funds would be held in demat form starting Sept. 2024.
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Updated: 25 Nov 2023, 07:45 PM IST