Sebi board to consider easing FPI settlement norms, intermediary rule changes at Monday meet
Sebi's board will discuss easing settlement rules for foreign investors and updating regulations for market intermediaries at its Monday meeting.Summary
The Securities and Exchange Board of India (Sebi) will convene a board meeting on Monday to address several key proposals. A major item on the agenda is the potential easing of fund settlement norms for Foreign Portfolio Investors (FPIs). Currently, FPIs must settle equity trades on a gross basis, but Sebi is considering allowing “netting of funds,” enabling them to offset purchases with same-day sales, reducing costs and improving efficiency.
The board will also review changes to the criteria for determining whether market intermediaries are “fit and proper,” aiming for greater clarity and fairness. Proposed changes include removing the initiation of winding-up proceedings as a disqualification and formally codifying the right to a hearing.
Additionally, the meeting will cover ease-of-doing-business proposals for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), as well as a report on conflict of interest and transparency, with recommendations for enhanced disclosure norms and a “zero-tolerance” approach to conflicts involving Sebi officials.
(Source：The Times Of India)