SEBI simplifies registration process for FPIs

Sebi Board Meeting Decides on Decisions: Category for FPIs reduced from three to two

(Commerce Rep) Mumbai, Ta. August 22, 2019, Wednesday

The Securities and Exchange Board of India (SEBI), the capital market regulator, has simplified the process of registration for Foreign Portfolio Investors (FPIs), as well as approving proposals regarding buyback of securities, making it easier for credit rating agencies to receive information about default units today. Compile the rules regarding FPIs Accepting the recommendations of the HR Khan Committee, to make it simple and effective, was approved at a Board meeting today.

Speaking to reporters after a board meeting today, Sebi Chairman Ajay Tyagi said that Sebi has simplified the fast track registration process for select category two FPIs according to recommendations on FPIs. Has decided.

Central banks are generally long-term, low-risk investors and, directly or indirectly, regulated by the government, which is not a member of the Central Banks Bank for International Settlement (BIS), central banks will also be eligible for FPI registration. The units that are set up at the International Financial Services Center (IFSC) will be considered as the criteria for FPEIs.

The KYC required documentation for FPIs has been simplified. In addition, FPIs are allowed off-market transfers to local or foreign investors of unlisted, suspended or liquid securities. Offshore funds launched by Indian Mutual Funds will now be allowed to invest in India after obtaining registration as FPI. SEBI has simplified the requirements for issuance and subscription of offshore derivative instrument (ODIs).

In addition, the rules for the Innovators Growth Platform (IGP) have been reviewed and approved by modifying the standards for listed companies moving from the Innovators Growth Platform to the Main Trade Board on the Main Board. It has also simplified the registration process of the Multiple Investment Manager (MIM), which has the same legal unit receiving multiple registrations.

As per the approval of the share-securities buyback proposals, the Debt to Equity Ratio shall not be more than 3: 1 on both standalone and consolidated basis after SEBI buyback (except for companies having high debt to equity approved under Companies Act 1).

In addition, if the debt-to-equity ratio after the buyback is not more than 5: 1 on a standalone basis and more than 5: 1 on a consolidated basis, in this case, the buy-to-equity ratio of the buy-back to non-banking financial companies and housing banks of the banks and finance companies. Except for subsidiaries under the Director, the consolidated basis shall not be allowed in excess of 5: 1

Sebi has also amended the rules for credit rating agencies and has now approved rating agencies for provision of timely information for the default unit company. In the third round of regulations on the ban on insider trading, the SEBI has made a number of changes to it after issuing a consultation letter seeking comment on the issue of amendments to SEBI norms.

SEBI has also amended the mutual funds regulations. Accordingly, mutual funds should invest up to a maximum of 5% of the scheme's debt portfolio in unlisted non-convertible debentures, ie investing in such unlisted NCDs should have a simple structure and should have valid, rating, secured and monthly coupons from time to time. The changes will be implemented in phases by June 1st.

In the meantime, the SEBI Board today approved the amendment to the rules, 2, for the issue and listing of debt securities by the municipality. In which the definition of issuer is expanded. Various escrow accounts such as no-lien escrow account, interest payment account, sinking fund account etc. have been approved to enhance the protection of the investors.

Some requirements for multiple intermediaries have been removed. These include the need for the appointment of a monitoring agency, the requirement of a viability certificate or a Detailed Project Appraisal Report (DPR) before filing an offer document in the case of a public issue, the requirement for a separate project sales center for the monitoring of projects, and the requirement of maintaining a state-of-the-art application. Removed Except these days has removed the need for flour. Limit of offer has been approved to 5 persons of debt securities on a private placement basis every financial year.