SEBI Board Meet: SEBI’s Big Decision, Now Listing Of IPO Will Be Done In 3 Days, Strict Disclosure Rules For Foreign Portfolio Investors

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SEBI Board Meet: The stock market regulator SEBI has given huge relief to the investors investing in IPOs. The companies bringing the IPO will now have to get the IPO listed on the stock exchange only three days after the closing of the issue. This decision has been taken in the board meeting of SEBI. This decision of SEBI will speed up the process of listing of IPOs. Also, investors who are not allotted shares on application in the IPO will get their money back soon.

SEBI Chairperson Madhabi Puri Buch informed about the decisions taken in the board meeting. SEBI has also taken a big decision regarding foreign portfolio investors. SEBI has tightened disclosure norms for foreign portfolio investors. Now such offshore funds that invest 50 percent of their total investment in a single corporate group will have to disclose the names of all their investors. It is believed that SEBI has framed this new rule for FPIs in view of Hindenburg’s report issued on Adani Group shares.

In India’s equity market, Rs. Such foreign portfolio investors investing more than Rs 25,000 crore will have to disclose the names of all their investors. SEBI has allowed voluntary delisting of Non Convertible Debentures (NCD). SEBI has also announced relaxation in listing norms for debt securities.

However, SEBI has not changed the fee structure of mutual funds i.e. the total expense ratio has not changed. It was expected that SEBI would restructure mutual funds along with reducing the fees charged on investing in them. No decision could be taken in today’s board meeting.