The Securities and Exchange Board of India (SEBI) on March 29, 2023, held SEBI Board Meeting.
The following decisions were taken namely: -
• The regulatory framework for ESG Disclosures, Ratings, and Investing has been approved to enhance the reliability of ESG disclosures, and the BRSR (Business Responsibility and Sustainability Report) Core shall be introduced.
• The regulatory framework for Environmental, Social, and Governance (ESG) Rating Providers in the Securities Market has been established by introducing a new chapter in the SEBI (Credit Rating Agencies) Regulations, 1999. The framework would be implemented in a phased manner to facilitate a smooth transition in the market.
• Introduction of a regulatory framework for upstreaming clients’ funds by SBs/non-bank CMs to CCs has been approved. Under the approved framework, clients’ funds shall be upstreamed by SB/non-bank CMs to CCs on End of Day basis. This is implemented with a glide path comprising two phases. Phase I of the framework is expected to be implemented on July 01, 2023.
• The Stock Brokers Regulations have been amended to institute a formal mechanism for the prevention and detection of fraud or market abuse by stock brokers. The approved amendments will come into effect from October 01, 2023.
• The Board approved the amendments to SEBI (Alternative Investment Funds) Regulations, 2012 for setting up of Corporate Debt Market Development Fund (“CDMDF”) in the form of an Alternative Investment Fund to act as a Backstop Facility for purchase of investment grade corporate debt securities during times of stress.
• The amendments to SEBI (Mutual Funds) Regulations, 1996 have been approved under which, while strengthening the existing eligibility criteria for sponsors, introduced an alternative route to enable a diverse set of entities to become sponsors of MFs.
• The SEBI (Listing Obligations and Disclosure Requirements) Regulations have been amended to facilitate more comprehensive and timely disclosure.
• The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 has been amended with the objective of increasing transparency and streamlining certain issue processes.
• The concept of General Information Document (GID) and Key Information Document (KID) has been introduced to do away with multiple filings of placement memoranda by issuers for non-convertible securities and commercial paper proposed to be listed and to promote ease of doing business for issuers. To begin with, the said concept is proposed to be made applicable on a ‘comply or explain’ basis till March 31, 2024, and mandatory thereafter.
• The Extension of the “Comply or Explain” period for Large Corporates (LCs) has been approved to meet their financing needs from the debt market through the issuance of debt securities to the extent of 25% of their incremental borrowings in a financial year
• The Board decided to extend the ‘comply or explain’ period for the HVDLEs in respect of corporate governance norms (regulations 16 to 27 of LODR Regulations) till March 31, 2024.
• Alternative Investment Funds Regulations have been amended to prescribe provisions for the valuation of investments, dematerialisation of units, certification requirement for key employees of the Investment Manager, transactions with associates, and an option to sell unliquidated investments to a new scheme of Alternative Investment Funds. The new schemes going forward and existing schemes of AIFs with a corpus of more than Rs. 500 Crore shall dematerialise their units by October 31, 2023. Existing schemes of AIFs with a corpus less than Rs. 500 Crore shall dematerialise their units by April 30, 2024.
• The Investor Grievance Redressal Mechanism has been strengthened in the Securities Market through amendments to Regulations to operationalize Online Dispute Resolution (ODR) Mechanism for investors across registered intermediaries/regulated entities.
[Press Release No. 6/2023]
