SEBI Approves New Measures to Streamline Security Regulations, Address Allegations

The Securities and Exchange Board of India (SEBI) has introduced new asset classes for high-risk investors, amended insider trading rules, and implemented a light-touch framework for passive mutual funds. It responded to recent allegations against its chairperson by announcing various measures to streamline processes and enhance compliance within securities regulations.

The Securities and Exchange Board of India's (SEBI) board has greenlit a new asset class aimed at high-risk profile investors, hoping to fill the gap between mutual funds and portfolio management services. This move comes alongside the introduction of a relaxed 'light-touch' framework for passive mutual fund schemes.

In total, 17 proposals were approved, including amendments to insider trading rules to clarify definitions of 'connected person' and 'immediate relative', as well as relaxed criteria for investment advisers and research analysts. The meeting marked the first since US-based Hindenburg Research and the Congress party leveled allegations against SEBI Chairperson Madhabi Puri Buch.

Among the other changes, SEBI will now permit promotors to transfer their rights entitlement during rights issues and has approved a UPI block mechanism along with a 3-in-1 trading facility. Additionally, SEBI aims to streamline its operations by reducing the rights issue processing time and simplifying the compliance for non-convertible securities.

(With inputs from agencies.)