The Securities and Exchange Board of India (SEBI) in its board meeting today will discuss measures to expand its offer-for-sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules, PTI reported citing the regulator's officials.
A number of other important matters will also be discussed such as relaxations for new-age ventures in sectors like e-commerce, data analytics and biotechnology to raise funds and get the shares of these new-age ventures traded on stock exchanges and creating a separate category of "difficult to recover" cases for optimal utilisation of its resources, it further said.
The important discussions would be around:
1. Introducing a common custodian for equity and commodities: Institutional investors like mutual funds or foreign institutional investors could not invest in commodity derivatives due to lack of custodians. The SEBI board will decide if securities custodians could be able to track commodities as well.
2. Making startup listing rules easier by reducing trading lot size among other norms
3. Allowing mutual funds to "side-pocket" where the liquid scheme will be separating their risky securities from the rest.
4. Offer for Sale (OFS) framework will be expanded to help the government in the disinvestment process.
5. Relaxing clubbing investment limit for Foreign Portfolio Investors (FPI) by clubbing investment limits only if more than 50 percent of the funds have common ownership with multiple entities.
6. Non-banking finance companies (NBFCs) won't need to disclose changes in shareholding due to encumbered or pledged shares.