SEBI to make FPI registration norms less stringent, IPO listings easier

India Infoline News Service | Mumbai | June 19, 2017 16:52 IST

In a set of new regulations to be introduced by the market regulator, SEBI is likely to make Indian equity markets more attractive by tweaking direct regulation norms for foreign investors and making the IPO-listing process less cumbersome. The SEBI is also working on making the corporate governance regulations more stringent, to ensure transparency in the operations of the corporates, according to market reports.

Sebi
In a set of new regulations to be introduced by the market regulator, SEBI is likely to make Indian equity markets more attractive by tweaking direct regulation norms for foreign investors and making the IPO-listing process less cumbersome. The SEBI is also working on making the corporate governance regulations more stringent, to ensure transparency in the operations of the corporates, according to market reports.
       
With a broader intent to discourage investments through participatory notes (P-note), the foreign portfolio investors complying with global regulatory norms may get direct access to the equity markets in India without any delays in the procedure. In addition, SEBI is also likely to make investments through the P-note route more expensive as well as strict. 

SEBI is also considering to cut down the listing time for all the companies to four days from the existing six days norm, post the initial public offerings (IPO). While along with bringing down the size of the IPO documents, the other forms of shares may also witness more relaxed norms, including permitting the alternative investment funds to invest in commodity derivatives. Furthermore, the startups may also be allowed to be listed with the relaxed norms for the existing shareholders.

In the sphere of corporate governance, the market regulator is expected to vest more power and responsibility on the independent directors, making their appointment and removal norms more strict, among other changes.

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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