Regulator considers expanding eligibility for qualified institutional buyer

The Securities and Exchange Board of India (Sebi) is inviting public feedback on proposed measures until March 14. This move is part of Sebi’s efforts to enhance investor protection and market transparency. The regulatory body has put forth various suggestions aimed at achieving these goals.

One of the proposals is to introduce a cybersecurity framework for stock exchanges and clearing corporations. This framework would require these entities to establish robust cybersecurity policies and procedures to safeguard their systems and data from cyber threats. By implementing such measures, Sebi aims to ensure the integrity and reliability of the trading infrastructure in India.

Additionally, Sebi has proposed changes to the delisting regulations to streamline the delisting process and provide greater clarity to stakeholders. These changes include revising the delisting timeline, making it more transparent and efficient. The objective is to create a fair and transparent delisting process that protects the interests of all parties involved.

Another key proposal put forth by Sebi is the introduction of swing pricing for open-ended debt mutual funds. Swing pricing is a mechanism that adjusts the net asset value (NAV) of a fund to account for large redemptions or inflows. This measure aims to prevent dilution in the value of existing investors’ holdings due to large withdrawals or injections of funds. By implementing swing pricing, Sebi hopes to improve the liquidity management of debt mutual funds and protect investors’ interests.

Furthermore, Sebi has suggested changes to the mergers and acquisitions regulations to address certain ambiguities and enhance the effectiveness of the regulatory framework. These changes aim to streamline the takeover process and provide clarity on various aspects of mergers and acquisitions. By doing so, Sebi seeks to promote fairness, transparency, and efficiency in the conduct of mergers and acquisitions transactions.

Overall, the proposals put forth by Sebi are focused on strengthening the regulatory framework governing the Indian securities market. By soliciting public feedback, Sebi is demonstrating its commitment to engaging with stakeholders and incorporating their views into the decision-making process. It is essential for market participants and investors to review these proposals carefully and provide their inputs to help shape the future of the securities market in India.