SEBI approves creation of Social Stock Exchange

It was decided to approve the framework for gold exchange

(Commercial Representative) MUMBAI: The Securities and Exchange Board of India (Sebi) has taken a number of decisions at its board meeting today, including approving a framework for gold exchange. SEBI has also approved amendments to the delisting standards to facilitate mergers and amalgamations. It has also approved the construction of a social stock exchange.

The framework for gold exchange was today approved by the Securities and Exchange Board of India (SEBI), the regulator of the capital market. With this approval trading in gold in electronic form will now be possible and will help in the creation of a transparent local spot price discovery mechanism.

SEBI also approved the construction of a social stock exchange at a board meeting held today. With the decisions taken by the SEBI Board, trading in gold will now be known as Electronic Gold Receipt (EGR) and will allow trading, clearing and settlement like other securities.

Under the construction of the Social Stock Exchange, SEBI has stated that it could be used by social entrepreneurs to raise funds. In addition, SEBI Chairman Ajay Tyagi said that no definite time frame has yet been fixed for the construction of the social stock exchange, which will be taken up in consultation with the government.

SEBI, meanwhile, has also approved amendments to the delisting framework for equity stocks, simplifying the need for recognition regarding the Superior Voting Rights Shares Framework.

According to an earlier statement from SEBI, the proposed gold exchange would lead to greater efficiency and transparency in fixing local spot prices in the country. This will ensure the quality of gold.

Its integration with the financial markets will be massive and gold recycling in India will gain momentum. SEBI further said that the establishment of a regulatory gold exchange would be a landmark step and would remain a historic step. The regulator further said that the instrument to be traded on the exchange for gold would be known as Electronic Gold Receipt (EGR) and the entire transaction mechanism could be divided into three stages.

SEBI has taken some decisions regarding ownership rules of mutual funds. While approving the amendment to make merger and amalgamation easier for listed companies. According to the new framework, if the acquirer is determined to delist the target company, the acquirer will be obliged to offer a higher price for delisting at a premium higher than the open offer price.

In addition, if an open offer cannot be delisted after the open offer under this new framework and the acquirer exceeds the 5% limit due to the open offer, further efforts to delist the company using the reverse book building mechanism under delisting norms within a period of 12 months from the date of completion of this open offer. Opportunity will be available.

The Capital Markets Regulatory Authority has also decided to ease the requirement for recognition of superior voting rights shares. At the board meeting, SEBI also approved an investor charter for the securities market. Meanwhile, SEBI Chairman Ajay Tyagi said that the Zee-Sony merger case will be investigated to see if any rules and regulations have been violated.