SEBI Approves Regulatory Framework For Index Providers, Amends AIF Norms
The board also approved flexibility in the framework for social stock exchange.
SEBI approved on Saturday a regulatory framework for index providers to foster transparency and accountability in governance and administration of financial benchmarks in the securities market.
"The regulators will provide a framework for registration of Index Providers which license 'Significant Indices' that shall be notified by SEBI based on objective criteria," the market regulator said in a release.
The Securities and Exchange Board of India also approved flexibility in the framework for social stock exchange. It reduced the minimum issue size of zero coupon zero principal instruments by non-profit organisations from Rs 1 crore to Rs 50 lakh.
More non-profit entities will be eligible to facilitate new entities coming in through issues in the Social Stock Exchange, SEBI Chairperson Madhabi Puri Buch said.
It also approved the creation of a regulatory framework for facilitation of small and medium real estate investment trusts. Small and Medium REITs shall have the ability to create separate scheme for owning real estate assets through special purpose vehicle constituted as companies, according to the statement.
Delisting Norms
The board also discussed delisting norms. The number of delisting applications has been "pretty small", making the data set limited to draw a significant conclusion, according to Buch.
Therefore, the board has decided to do further examination "to have a better sense as (the) data set was limited".
AIF Investment Norms
SEBI also approved a proposal that fresh investment made by alternate investment funds beyond September 2024 will be held in dematerialised form.
The board also mandated appointment of custodians by all the AIFs. Currently, this is applicable on schemes of Category III AIFs and to schemes of Category I and II AIFs with corpus more than Rs 500 crore.
Extension Of F&O Trading Hours
Buch said the regulator would need a response from market participants on the proposal for extension of trading hours of futures and options.
She said SEBI has told exchanges that brokers and end-investors' feedback will be reviewed to make a decision.
The National Stock Exchange has sought approval from the SEBI for 6 p.m. to 9 p.m. trading sessions in index futures and options.
