Sebi eases FPI settlement norms, simplifies IPO disclosure framework

The Securities and Exchange Board of India (Sebi) has implemented several reforms aimed at improving market accessibility and transparency. These include easing settlement norms for Foreign Portfolio Investors (FPIs), allowing them to settle trades on a net basis to reduce funding requirements and costs, particularly in light of recent heavy outflows – totaling Rs 1,07,077 crore as of March 23rd. Furthermore, Sebi introduced a simplified IPO disclosure framework, requiring companies to submit a concise “abridged prospectus” alongside detailed offer documents, featuring key information like financials and risks in an easy-to-understand format. QR codes and links will also be provided for easy access to relevant documents.

To enhance governance, Sebi approved stricter conflict-of-interest disclosure rules for its officials, based on recommendations from a high-level committee chaired by Pratyush Sinha. These changes aim to improve transparency and accountability within the regulatory body.

Additional measures were taken to ease business processes for Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and Alternative Investment Funds (AIFs), including providing flexibility in scheme winding-up and revising the 'fit and proper person' criteria for market intermediaries.

(Source：The Economic Times)