Source: TOI
Context:
The Securities and Exchange Board of India (Sebi) has implemented a series of structural reforms aimed at broadening market participation, improving transparency, and attracting quality securities into the Indian capital market. The reforms target both primary and secondary markets to make the investment ecosystem more appealing for domestic and institutional investors.
Key Reforms:
- Public Shareholding and Anchor Investors:
- Listed companies now have more time to meet the minimum public shareholding requirement post-IPO.
- The share reserved for anchor investors during IPO listing has been increased, incentivising early participation by large investors.
- Mutual Fund and FII Adjustments:
- Exit load thresholds for mutual funds have been lowered, providing greater flexibility for investors.
- Low-risk Foreign Institutional Investors (FIIs) now face relaxed disclosure requirements, reducing compliance burdens.
- REITs and Institutional Participation:
- Real Estate Investment Trusts (REITs) have been reclassified as equity for mutual fund investments.
- A wider group of institutional investors can now act in a strategic capacity in REITs, enhancing liquidity and market depth.
- Corporate Governance Tweaks:
- Shareholder approvals for related-party transactions will now be based on company turnover, lowering compliance burden for mid-sized and large companies.
