Key Highlights
First Board Meeting Under New Chairperson
- This will be the first SEBI board meeting after Tuhin Kanta Pandey assumed the role of SEBI Chairperson earlier this month.
- Significant regulatory changes and relaxations are on the agenda.
Major Proposed Changes
=FPI Disclosure Norms Relaxation
- Current rules (August 2023): FPIs with Assets Under Custody (AUC) over â‚ą25,000 crore or with 50%+ exposure to a single corporate group must provide detailed ownership disclosures.
- Proposed change: Doubling the threshold to ease compliance while maintaining transparency.
- Context: FPIs have withdrawn over â‚ą2 trillion from Indian equities in the past six months.
About PN3
- Introduced in April 2020 to regulate FDI from countries sharing land borders with India, including China.
- Mandates prior government approval for investments from these nations.
Advance Fee Collection Limits for Investment Advisors and Analysts
- Current limit: Collection of fees only up to one quarter in advance.
- Proposed change: Extend this limit to one year to offer greater flexibility and meet long-standing industry demands.
Relaxation for Category II AIFs and Angel Funds
- Proposed easing of debt investment norms for Category II Alternative Investment Funds (AIFs).
- Likely revision of the angel fund framework.
- Potential inclusion of accredited investors in the definition of Qualified Institutional Buyers (QIBs) for angel fund investments.
Cost Reduction for Sachet-Sized SIPs
- SEBI aims to make small-ticket SIPs (as low as â‚ą250) more cost-effective for asset management companies.
- Potential measures:
- Lowering intermediary charges
- Incentivizing distributors
- Fund houses like SBI Mutual Fund and Kotak Mahindra AMC have already launched such low-value SIPs.
Proposals Likely to Be Deferred
- Review of ownership norms for clearing corporations.
- Reforms in secretarial compliance and auditor appointments.
- Industry objections and suggestions on secretarial compliance need further deliberation.
Additional Expectation
- SEBI may hold a post-meeting press briefing, which would mark a shift from the recent trend of avoiding media interactions.
SEBI’s upcoming board meeting under new chairperson Tuhin Kanta Pandey signals significant regulatory shifts aimed at easing compliance for FPIs, increasing flexibility for advisors, supporting small-ticket SIP growth, and streamlining angel fund investments.
