The board also enhanced the scope of optional T+0 settlement cycle from the present 25 stocks to top 500 based on their market capitalization in a phased manner.
With this, all registered brokers can offer access to the optional T+0 settlement cycle to their investors and allowed them to charge differential brokerage for the same. This will allow foreign portfolio investors and mutual funds to access the optional T+0 settlement cycle.
Along with this, it has also allowed the introduction of an optional block deal window under the T+0 settlement cycle from 8.45-9 am session, alongside the existing block windows under T+1 settlement cycle.
For the primary markets, it has allowed faster rights issues with flexibility of allotment to specific investors by amending the capital and disclosure requirements regulations of 2018.
To ensure the rights issue process is faster it has allowed flexibility to allot to specific investors by amending the issue of capital and disclosure requirements of 2018. This also gives investment opportunities to existing shareholders.
Accordingly, the rights issue to be completed in 23 working days from the date of the issuer’s board approval as against the present average timeline of 317 days. This mechanism would be even faster than the preferential allotment route that takes 40 working days. In addition, it would give existing shareholders an opportunity to participate even more, in the future potential growth of the company.
To protect the rights of investors in alternative investment funds, the Sebi has allowed entities such as those owned or controlled by governments, multilateral or bilateral development financial institutions, and state industrial development corporations to subscribe to junior classes of units of AIFs with less than their pro-rata rights in the investments of the scheme.
The board has also approved a proposal to ensure that offshore derivative instruments (erstwhile P-notes) and segregated portfolios of FPIs are subject to disclosure requirements on par with FPIs.
To help deepen the bond market it has streamlined the compliance mechanism for listed NCDs by easing the disclosures regarding appointment of debenture trustees in the offer document.
The board has also permitted promoters to renounce their rights entitlements to any specific investors and allowing the issuer to allot an under-subscribed portion of rights issue to any specific investors, provided appropriate disclosures are made through advertisement in this regard.
For reporting, the time has been increased from 30 minutes to 3 hours. It has also allowed an additional 72 hours instead of 24 hours now for disclosure of litigations or disputes involving claims against the listed entity subject to maintaining such information in structured digital database as specified.
