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SEBI Board Meeting on June 28, 2023

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Yesterday, SEBI under the chairmanship of Ms. Madhabi Puri Buch, held a board meeting to clear various proposals laid before the Board. The key highlights of the SEBI Board Meeting are provided below:

1. Reduction in timeline for listing of public issue
The Board has approved the proposal for reducing the time period for listing of shares in public issue from existing 6 days to 3 days, from the date of issue closure.

2. Amendment to the LODR Regulations
The Board has approved the amendment to the LODR, requiring listed entities having outstanding listed NCDs to list their subsequent NCDs at the stock exchange.

3. Setting up of Limited Purpose Clearing Corporation (LPCC)
SEBI has approved a proposal to set up LPCC for clearing and settling repo transactions in corporate debt market. This step is aimed towards facilitating active trading by market markers and improving liquidity in the bond market.

4. Changes to the Management of InvITs/REITs
Presently, the Sponsor is required to hold a minimum of 15% units for a period of 3 years from the listing of the units. A proposal has been approved that the Sponsors must hold a minimum unitholding on a reducing scale for the entire life of the units and the holding must be locked-in and encumbered. Additionally, the Board approved a proposal to introduce Self-Sponsored Investment Manager.

5. Board Nomination Rights to Unitholders of InvITs/REITs
Unitholders holding 10% or more of the total outstanding units of the InvITS/REITS, either individually or collectively, will now have nomination rights to the Board of Directors of Investment Manager/Manager according to the current approved proposal.

6. Additional Disclosures by FPIs
FPIs, meeting certain defined criterias, must now disclose additional granular level information such as ownership, economic interest, control, etc. This will help in avoiding the misuse of the FPI route.

7. Integration of SCORES and Online Dispute Resolution platform
This move is aimed towards a more comprehensive grievance redressal process by offering end-to-end solutions.

A copy of the board meeting minutes is attached below.

Readers can also share their views with Regstreet Law Advisors on info@regstreetlaw.com.

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