The watchdog has permitted a regulatory framework to permit personal fairness funds to change into sponsors of mutual funds, a transfer that can assist additional deepen the mutual fund business.
Sebi will put in place a proper mechanism to forestall frauds and market abuse by inventory brokers.
Markets regulator Securities and Exchange Board of India on Wednesday permitted a slew of proposals, together with ending the observe of people holding everlasting directorship at boards of listed corporations and putting in a framework to forestall frauds by inventory brokers.
The proposals have been cleared by the board of the Sebi throughout its assembly in Mumbai on Wednesday.
Among different measures, the regulator will put in place a proper mechanism to forestall frauds and market abuse by inventory brokers.
The watchdog has permitted a regulatory framework to permit personal fairness funds to change into sponsors of mutual funds, a transfer that can assist additional deepen the mutual fund business.
Besides, the regulator has given its nod for norms for Environmental, Social and Governance (ESG) disclosures by listed corporations.
Sebi mentioned it has determined to finish the observe of people having everlasting seats at boards of listed corporations. The transfer is a part of efforts to additional increase the company governance ecosystem.
Further, Sebi will introduce fund-blocking facility for secondary market transactions like being performed for Initial Public Offerings (IPOs). The measure is geared toward safeguarding buyers’ cash from misuse by inventory brokers.
The Sebi board has permitted the broad framework for Application Supported by Blocked Amount (ASBA) like facility being made obtainable to buyers for secondary market buying and selling. The facility relies on blocking of funds for buying and selling in secondary market via UPI.
In the backdrop of enhance in investor participation within the securities market in India, and emergence of know-how aided dispute decision frameworks, the board has additionally permitted the proposal to harness Online Dispute Resolution (ODR) mechanism.
(With PTI inputs)
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