Mumbai: The Securities and Exchange Board of India (SEBI) has approved a series of relaxations for foreign portfolio investors (FPIs), alternative investment funds (AIFs), and entities gearing up for initial share sales amid efforts to enhance the ease of doing business. The announcement was made after a late-night board meeting on Friday.

Among the key approvals is a package of relaxations for FPIs, including exemptions from additional disclosure requirements for entities with more than 50 percent of their Indian equity assets under management in a single corporate group, albeit subject to certain conditions.

Additionally, SEBI has eased the timelines for disclosure of material changes by FPIs, streamlining the compliance process for these investors.

To further stimulate investor participation and streamline market operations, SEBI has also given the nod for a uniform approach to verify market rumors for material price movement of equity shares for the listed entities. Under this initiative, specific criteria will be established for rumor verification, ensuring transparency and mitigating market volatility.

"Considering unaffected price for transactions wherever pricing norms have been prescribed under Sebi regulations provided that the rumour pertaining to such transaction has been confirmed within twenty-four hours from the trigger of material price movement," the SEBI said in a statement.

Additionally, the SEBI has announced the launch of a Beta version for 25 scrips and limited brokers to test the feasibility of the optional T+0 settlement mechanism. This experimental phase will involve a limited number of stakeholders and will undergo rigorous stakeholder consultation before a broader rollout. The progress of this initiative will be closely monitored over the next six months.

Moreover, SEBI has introduced measures to strengthen due diligence processes for Alternative Investment Fund (AIF), mandating specific due diligence of investors and investments by AIFs, their managers, and key management personnel. 

Under another proposal, to ease the burden on companies seeking initial public offerings (IPOs) and fundraising, SEBI has abolished the requirement of a 1 percent security deposit in public or rights issues of equity shares. Additionally, the regulator has relaxed norms related to minimum promoters' contributions, allowing promoter group entities and non-individual shareholders to contribute without being identified as promoters.

Furthermore, SEBI has announced changes to ongoing compliance requirements for listed entities will be determined on the basis of the average market capitalization of six months ending December 31, instead of single day's (March 31) market capitalisation, including adjustments to market capitalization-based compliance requirements and an extension of the timeline for filling vacancies of key managerial personnel from three months to six months.

These measures are expected to streamline regulatory processes and provide flexibility to listed entities.

In addition to the extensive reforms already approved, SEBI has announced several other measures as well.

Firstly, the maximum permitted time gap between consecutive meetings of the Risk Management Committee has been extended from 180 days to 210 days to provide greater flexibility for listed entities to schedule these crucial meetings, ensuring adequate time for risk assessment and mitigation strategies.

Sebi has also established a framework for the issuance of subordinate units by privately placed Infrastructure Investment Trusts (InvITs) to facilitate the fundraising process for InvITs, providing investors with additional investment opportunities while bolstering infrastructure development initiatives.

Furthermore, the board has recognized a stock exchange as both a Research Analyst Administration and Supervisory Body (RAASB) and an Investment Advisers Administration and Supervisory Body (IAASB). 

Moreover, the timeline for the mandatory applicability of listing norms for High-Value Debt Listed Entities (HVDLEs) has been extended until March 31, 2025. This extension provides HVDLEs with additional time to comply with regulatory requirements, ensuring a smoother transition while maintaining market stability.

The board has also approved the regulator's budget for the financial year 2024-25.

ALSO READ: Centre approves EV policy to promote India as manufacturing destination