The SEBI Board met in New Delhi today and took the following decisions:
Regulations for issuance and listing of non-convertible redeemable preference shares:
The Board approved the SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 thereby providing a comprehensive regulatory framework for issuance and listing of non-convertible redeemable preference shares. As in case of SEBI (Issue and Listing of Debt Securities) Regulations, 2008, the proposed Regulations provide framework for public issuance of non-convertible redeemable preference shares and also listing of privately placed redeemable preference shares. Considering the risks involved in the instrument, certain requirements like minimum tenure of the instruments (three years), minimum rating (“AA-” or equivalent) etc. have been specified in case of public issuances. For listing of privately placed non-convertible redeemable preference shares, minimum application size for each investor is fixed at Rupees Ten Lakhs.
As per Basel III norms, Banks can issue non-equity instruments such as Perpetual Non-Cumulative Preference Shares and Innovative Perpetual Debt Instruments, which are in compliance with the specified criteria for inclusion in Additional Tier I Capital. The proposed Regulations shall, mutatis mutandis, be applicable to aforesaid instruments issued by banks, subject to compliance with the provisions of Companies Act, 1956 or/ and any other applicable laws and such other conditions that may be specified by SEBI and subject to making adequate disclosures and relevant risk factors in the offer document.
SEBI Budget for 2013 -14
The Board also approved the Budget of SEBI for financial year 2013-14 with focus on investor education and awareness, development of the markets, enhancing market surveillance capabilities and improving the access of investors to SEBI. In this regard, the Board approved the opening of six more local offices at Ranchi, Raipur, Panaji, Shimla, Dehradun and Srinagar.
Simplification and rationalization of registration requirements for brokers
Presently, to become a stock broker, it is required to get a separate certificate of registration from SEBI while operating in different segments of a stock exchange viz. equity, equity derivatives, currency derivatives and also for each category like trading member, trading cum self clearing member and a professional clearing member.
With a view to simplifying and rationalizing the registration requirement, the Board decided to amend the regulations for stock brokers so that there may be one certificate of registration per stock exchange for a stock broker. For operating in other segments and in aforesaid different categories he would take approval from the stock exchange, subject to compliance of all regulatory requirements. The stock exchange shall keep SEBI informed about such approvals in periodical reports.
Amendment to SEBI (Mutual Fund) Regulations, 1996 regarding RGESS
The Board approved the proposal to amend the SEBI (Mutual Fund) Regulations, 1996 with respect to increase in initial offering period for RGESS eligible schemes from 15 days to 30 days. The timeline for refund of money and sending statement of account has been extended from five working days to 15 days from closure of initial subscription for RGESS eligible schemes.