BUSINESS
OPENING UP: Regulator relaxes clubbing of investment limit norms, eases norms for startups, expands OFS mechanism
In a slew of reforms, the Securities and Exchange Board of India (Sebi) on Wednesday allowed mutual funds to separate their holdings in risky assets, in the light of the liquidity crisis trigerred by the Infrastructure Leasing & Financial Services (IL&FS) collapse. It also approved a proposal of clubbing investment limit for foreign portfolio investors (FPIs) on the basis of common ownership of more than 50% or common control. In its Board Meeting, the market regulator has approved mutual funds to create segregated portfolios with respect to debt and money market instruments subject to various safeguards. This facility will be available to mutual funds based on credit events.
Sebi chairman Ajay Tyagi said "This provision has been triggered by the crisis at non-banking finance company (NBFCs)."
According to him, it is in the interest of retail investors that the toxic assets are segregated from the assets which are doing well.
"We think it is an appropriate time to introduce this provision," he said, adding enough steps will be taken and safeguards will be put by the regulator to ensure that this facility is not misused.
"The final guidelines will contain these safeguards," Tyagi said.
Referred as side-pocketing in mutual fund parlance, this will allow fund houses to isolate risky assets from the rest of their holdings.
The regulator also said the Board also approved a proposal that clubbing of investment limit for FPIs should not be done on the basis of a same set of beneficial owners as per the Prevention of Money Laundering Act.
"However, in the case of appropriately regulated public retail funds, investment limits will not be clubbed on the basis of common control," Sebi said.
At present, the FPIs are considered as part of the same investor group and the investment limits of all such entities are clubbed for deriving the investment limit as applicable to a single FPI, in case of the same set of ultimate beneficial owners investing through multiple entities.
The regulator has also decided to bring in a consultation paper on having uniformity in the valuation process of corporate bonds. The regulator will look into the issue of valuing distressed assets and other debt exposures of mutual fund schemes.
It also revised the offer for sale mechanism which will now be available to shareholders of companies with market capitalisation of Rs 1,000 crore and above. At present, only top 200 companies by market cap are allowed to opt for OFS.
In a major push to listing of start-ups, Sebi relaxed norms for new-age ventures in sectors like e-commerce, data analytics and biotechnology to raise funds and get their shares traded on stock exchanges.
Among the measures include renaming the 'Institutional Trading Platform' that the regulator had created for such listings as 'Innovators Growth Platform'.
AUS vs PAK, 1st ODI: Australia beat Pakistan by 2 wickets to take 1-0 lead in series
Singham Again’s sole aim is to entertain, it’s not a Hindutva propaganda
Delhi pollution: 'Why firecracker ban was not implemented during Diwali,' SC asks police, govt
IPL 2025 mega auction likely to be held in Riyadh on these dates
Big update on Reliance Jio IPO as Mukesh Ambani eyes THIS date
EC reschedules UP, Punjab, Kerala bypolls from Nov 13 to...
Coldplay's Chris Martin falls through stage trap door while performing live in Australia
Meet man, who is rising star in Tata Group after Ratan Tata's death, now tasked with...
'Nice handwriting': Internet reacts to Elon Musk's physics homework from his college days
Mithun Chakraborty's first wife Helena Luke dies at 68
AIIMS INI CET 2025 admit card releasing today at aiimsexams.ac.in; when and how to download
Sustainability Meets Innovation via uPVC: Industry expert shares experience
Promoting innovation in engineering education
AP TET 2024 exam result declared at aptet.apcfss.in; steps to check
AI-Powered Development: Insights from industry leaders on transforming software engineering
Another BIG move by BSNL, now set to provide tough competition to Jio, Airtel, Vi by...
Uttarakhand Bus Accident: 36 dead after bus falls into gorge in Almora; rescue operations underway
Bigg Boss 18: Vivian D'Sena accuses Chahat Pandey of pooping on floor, latter loses her cool
One of India's best wicketkeepers set to retire after this season, won't play IPL too, he is...
Research shows awe-inspiring details about Black Holes, they can...
US Presidential Election 2024: Harris vs Trump goes down to the wire, say polls
AP TET 2024 exam result to be declared today on aptet.apcfss.in, when and how to check
Shampoo, tea, biscuits, oil to get costlier soon? FMCG firms caution price hike as...
Swiggy fined Rs 35000 for duping Hyderabad customer by doing THIS
Delhi pollution: Air quality in Delhi-NCR further deteriorates, AQI hits 'severe' level
Indian mission condemns attack on Hindu devotees at Canada temple by ‘anti-India’ elements
'Upar se leke neeche tak...': Bigg Boss 18's Kashish Kapoor, Eisha Singh get into ugly spat
Man grows 500 kg pumpkin, uses it as boat to sail 70 km, SEE PIC
Devotees at Banke Bihari Temple drink AC water believing it to be 'Charan Amrit'; WATCH viral video
Bank Holidays in November: Banks to remain closed for four days in THESE states, full list here
Bhool Bhulaiyaa 3: Kartik Aaryan's mother struggles to get tickets, hilarious video goes viral
Mumbai Police arrest Maharashtra woman for hoax death threat to UP CM Yogi Adityanath
Kriti Sanon avoids posing with rumoured boyfriend Kabir Bahia at Mumbai airport, video goes viral
This is world's most expensive house, twice price of Mukesh Ambani's Antilia, it is located in...
SC to hear today Delhi govt's plea against vesting LG with power to appoint...
Viral video: Girl’s sizzling dance to ‘Taareefan’ song earns praise from netizens, watch
Watch: Elderly couple's heartwarming dance at Mohit Chauhan's Patna concert goes viral
This is India’s most expensive wedding card, made from real gold and silver, it costs Rs…
Viral video: Men’s mid-air stunt, twerk on Mumbai local train leaves netizens in splits, watch
Kartik Aaryan reveals details about his new 'girlfriend': 'Her name is...'
Delhi pollution: Air quality worsens in capital, AQI worst in India at...
Singham Again movie review: Ajay Devgn, Akshay Kumar, Ranveer Singh's high octane actioner
Pune: 35-year-old man killed by speeding car while bursting firecrackers on Diwali, video surfaces
Shah Rukh Khan makes BIG revelation on his birthday, says he has quit...
‘Against the principles of…’: Vijay-led TVK passes resolution against One Nation One Election
Watch: Two Delhi traffic police personnel dragged for 20 metres, case filed
Delhi-NCR pollution: Targeted measures enforced under GRAP for 16 days from...
AUS vs PAK Live Streaming: When and where to watch Australia vs Pakistan 1st ODI in India?
Viral video: Man casually lies on Delhi metro floor, leaves netizens divided
'No justification for..' J-K CM Omar Abdullah reacts to Srinagar terrorist attack
Who is Sunil Lulla, on whom Sebi imposed Rs 5000000 fine for violating market norms?
This bank's UPI services will NOT work for two days in November due to...; check details
Arjun Kapoor's Ravana overpowers Ajay Devgn's Rama in Rohit Shetty's Ramayana-inspired Singham Again
Shah Rukh Khan spotted wearing one of the most expensive watches in the world, it costs Rs...
Delhi Pollution: National capital's PM 2.5 Levels 13% higher than previous Diwali, reports suggest
J-K: Five injured after terrorists attack Srinagar weekly market with grenades
Mukesh Ambani's Reliance earns Rs 15393 crore during festive season, market cap reaches Rs...
This city that gives maximum number of IAS officers, its not Mumbai, Kolkata, the UPSC hub is...