Sebi aims to boost investor confidence

Announces slew of measures including extension of the initial offering period under the Rajiv Gandhi equity savings scheme

srishti

Srishti Pandey | March 9, 2013



In a bid to revive the capital markets and boost investor confidence, Sebi on Friday announced a slew of measures including extension of the initial offering period under the Rajiv Gandhi equity savings scheme (RGESS).

During a meeting held in the capital, the Securities and Exchange Board of India approved a proposal to increase the initial offering period from 15 to 30 days for mutual fund schemes launched under the RGESS. “The Board approved the proposal to amend the SEBI (Mutual Fund) Regulations, 1996 with respect to increasing the initial offering period for RGESS eligible schemes from 15 days to 30 days,” according to a statement issued by the regulator.

In addition, the regulator has also extended the time period for refunding money and sending statement of accounts from the initial period of five working days to 15 days following the closure of initial subscription for such schemes.

The Board has also given a green signal to the SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 to bring in more transparency in the process of companies raising funds by issuing non-convertible redeemable preference shares in various stock exchanges which will also be applicable to banks.

“Considering the risks involved in the instrument (non-convertible redeemable preference shares), 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 Rs 10 lakh,” the regulator said.

The regulator has also decided to cut-down on the lengthy procedural requirements for registration of stock brokers and has introduced common registration certificates across different market segments.

At present, stock brokers are required to get a separate certificate of registration from Sebi while operating in different segments of any stock exchange- equity, equity derivatives and currency derivatives, and also in different categories including trading member, trading-cum-self-clearing member and a professional clearing member. 

“With a view to simplifying and rationalising 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,” Sebi said.

For the financial year 2013-2014, the regulator has decided to pay attention on imparting investor education, enhancing market surveillance capabilities and improving investor access to Sebi. “In this regard, the Board approved the opening of six more local offices at Ranchi, Raipur, Panaji, Shimla, Dehradun and Srinagar,” the regulator added.

Comments

 

Other News

Master sculptor recalls the making of the Shankaracharya statue

The Golden Chisel: The Story Behind the Making of Ram Lalla  By Seethalakshmi S. and Rahul Nandan Rupa Publications, 168 pages, Rs 395  

Mumbai’s missing affordable homes

Mumbai’s real estate market keeps growing, yet homeownership remains out of reach for much of its population. Three experts – urban researcher Hussain Indorewala, urban planner Vidyadhar Phatak and developer Kamlesh Thakur of NAREDCO Maharashtra, agree that simply constructing more apartments

Rubio denies US foreknowledge of Starlink restrictions in Ukraine

US secretary of state Marco Rubio has said he was unfamiliar with the Wall Street Journal report suggesting Elon Musk had decided to throttle Starlink services in Ukraine, but rejected claims that Washington had ordered the restrictions to pressure Kyiv.   “There was no

Can AI change India’s breast cancer story?

Breast cancer has become a public-health challenge in India. The greatest opportunity is to find cancers earlier. Artificial intelligence (AI) is opening a new era in breast cancer detection. AI systems can analyse mammograms and other breast-imaging studies, identify subtle abnormalities and assist radi

Farm stability in the time of climate change

Indian agriculture is experiencing significant climate volatility, while the world economy seems to be in a highly volatile situation. Economic indices from various countries show that they need to recalibrate their strategies to withstand economic headwinds. In such a challenging situation, a country li

El Niño threatens India’s Rabi crops

India’s southwest monsoon ended with a 13% rainfall deficit in 2026, its weakest performance in a decade, raising concerns over agricultural production, water security and the upcoming rabi season. With El Niño expected to persist into early 2027, experts warn that declining soil moisture, dep

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter