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Highlights of SEBI Press Conference

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SEBI chairperson, Ms. Madhabi Puri Buch, conducted a press conference on July 24, 2023. During the press conference, SEBI Chairperson shared certain important updates with respect to changes the regulator is intending to bring. Some of the important updates were:

1.    Delisting of Securities: SEBI will consider permitting the delisting of companies via fixed price instead of the reverse book-building procedure. The reverse book-building method involves setting a floor price and then allowing shareholders to submit bids within a specified price range.

2.    T+1 Settlement of MF units: SEBI is preparing to implement a new policy that will expedite the allotment and redemption of mutual fund (MF) units to just one day. This change will effectively reduce the current timeline of T+2 (two days) to T+1 (one day) for both redemption and allotment of MF units. Ms. Buch also pointed out that a similar T+1 settlement mechanism is already in place for purchasing stocks in the cash market.

3.    Regulating Finfluencers: SEBI is set to release a consultation paper concerning the oversight of Finfluencers. Ms. Buch emphasized that while SEBI lacks the authority to directly regulate Finfluencers for their personal recommendations, which fall outside the purview of Indian laws, certain measures will be taken. Specifically, regulated entities such as stockbrokers and mutual funds will be prohibited from associating with Finfluencers, conducting transactions with them, or engaging in any form of collaboration.

4.    Debt Backstop Fund: Ms. Buch disclosed that the debt backstop fund worth INR 33,000 Crore shall be inaugurated by the Hon’ble Finance Minister, Ms. Nirmala Sitharaman, on July 28, 2023 (Friday). In March 2023, SEBI had approved setting up a backstop facility for the Corporate Debt Market Development Fund in the form of an alternative investment fund.

5.    Consultation Paper on UPSI: SEBI will come up with a consultation paper on tracking UPSI by the end of August 2023.

6.    Decline in Pendency in Regulatory Approval: Ms. Buch highlighted that there has been significant reduction in pending of approval of MF schemes, AIF scheme, IPOs, rights issue among others.

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