SEBI in its board meeting on December 12 relaxed norms for clubbing of investment limits by foreign portfolio investors (FPIs) on the basis of the recommendations of the HR Khan Committee report.
The regulator has decided that the clubbing of investment limit for FPI should not be done on the basis of same set of beneficial owners as per Prevention of Money Laundering. The Committee has recommended that clubbing of investment limits for FPIs will be on the basis of common ownership of more than 50 percent or common control was approved. However, in the case of appropriately regulated public retail funds, investment limits will not be clubbed on the basis of common control.
SEBI has approved amendment to the regulations pertaining to institutional trading platform, including re-naming to Innovators Growth Fund. This platform will be eligible for listing on the IGP and the issuer shall be company which is intensive in the use of technology, IT, intellectual property, data analytics, bio-technology or nano-technology to provide products, services or business platforms with substantial value.
In this amendment, 25 percent of the pre-issue capital of the issuer company for at least 2 years. On this platform minimum application size and trading lot to be Rs 2 lakh and in multiple of 2 lakh.
The existing requirement of cap on holding not more 25 percent of the post issue capital by any person or collectively. In this amendments not more than 10 percent of pre issue capital may be held by accredited investors. And for arrested investors any individual with total gross income of 50 lakh annually and who has minimum liquid net worth of Rs 5 crores or any corporate with net worth of Rs 25 crore.
SEBI also approved use of offer for sale (OFS) route for companies with m-cap of Rs 1,000 crore. Currently, the OFS route can only be accessed by top 200 companies.
SEBI chief Ajay Tyagi also shed light on developments related to the NSE co-location case and Sun Pharma whistleblower complaint.
“We have received a whistleblower complaint against Sun Pharma and are examining the complaint".
On the Sun Pharma case, whole time member Anant Barua said: "SEBI had settled another case in settlement which is different from current letter and that was just model code of conduct" Adjudication in the NSE Co-location case has started against 28-30 members. Two SEBI Whole-time members are working on the case.
So far, ICICI Bank has not filed any consent application in the ICICI-Videocon case,” he added.
SEBI has started adjuction process against three credit rating agencies, including ICRA, India Rating and Care Ratings, who had given higher rating to IL&FS Group companies.
SEBI has approved proposal allowing custodial services in goods underlying commodity derivative contracts in order to enable participation of institutional investors in commodity market.
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