Mumbai: Securities market regulator SEBI on Tuesday approved a slew of investor and business-friendly measures, including the creation of the Gold and Social Stock Exchange, among others.
SEBI board which met here took these decisions today.
The regulatory body took various decisions during the meeting. Notably, among them was approval for the framework for Gold Exchange and SEBI (Vault Managers) Regulations, 2021.
“The Gold Exchange will encompass the entire ecosystem of trading of ‘EGR’ and physical delivery of gold. It will create a vibrant gold ecosystem in India. This will becommensurate with the country’s large share of global gold consumption,” the regulator said.
“The Gold Exchange would be a national platform for buying and selling ‘EGRs’ with underlying standardised gold in India. It will also create a national pricing structure for gold,” it added.
The board also approved an amendment to enable the introduction of ‘Silver Exchange Traded Funds’. These will have certain safeguards in line with the existing regulatory mechanism for Gold ETFs.
Besides, the SEBI board approved the creation of the Social Stock Exchange (SSE) for fundraising by social enterprises.
“A working and a technical group constituted by the SEBI recommended the framework for the Social Stock Exchange,” it said.
The board approved the proposal to amend the existing regulatory framework for delisting of equity shares pursuant to open offer.
“The revised framework aims to make M&A transactions for listed companies a more rational and convenient exercise, balancing the interest of all investors in the process,” it said.
Resident Indians (other than individuals) can be constituents of FPIs that are registered as AIFs in IFSCs.
“Such Resident Indians shall be sponsor or manager of the FPI. Their contribution in the FPI shall be subject to conditions as specified by the board,” it said.
Additionally, other amends to facilitate co-investment by investors of Alternative Investment Funds (AIF)through the portfolio management route.
“The ‘Portfolio Manager’ providing co-investment services to investors of AIFs shall invest 100 per cent of the assets under their management in unlisted securities. He is exemp from certain requirements including minimum investment amount, minimum net worth,” it said.
Notably,the board also approved an ‘Investor Charter of SEBI for investors’ in the securities market.
“The investor charter, inter-alia, includes the vision statement of SEBI for the investors. SEBI has also developed ‘Investor Charters of SEBI recognised Market Infrastructure Institutions’ (MIIs), registered intermediaries and regulated entities in consultation with various entities,” it said.
In addition, the regulator’s board considered and approved the agenda on criteria for determining ‘fit and proper person’ to become a board member of listed companies.
“Some of such disqualifications include an order of conviction passed against such person by a court for any offence involving moral turpitude or such person has been declared insolvent and not discharged or has been categorised as a willful defaulter or has been declared a fugitive economic offender or against whom an order has been passed by SEBI or any other financial sector regulator,” it said.
