SEBI lately has introduced a few revamps in some key policies and regulations.  It has brought several amendments in key regulations like SEBI (LODR) Regulations,2015 ,SEBI (Alternative Investment Funds) Regulations,2012 , SEBI (Delisting of equity shares) Regulations,2009 and has reviewed Innovators Growth Platform, Applicability of Risk managing committee & Business Responsibility and Sustainable Reporting Norms.  This move is aimed towards increasing the scope of transparency & accountability  to stakeholders and also easing the stringency of certain norms and policies to make the stock markets more accessible.

width=552

Following are the changes brought about by SEBI :

1. Innovative Growth Platform

  • In light of the evolving start-up ecosystem, SEBI has made the following changes:
  • The period of holding of 25% of pre-issue capital of the issuer company by eligible investors is reduced to one year from the current requirement of two years.
  • Issuer Co. can make discretionary allotment up to 60 % of the issue size prior to the opening of the issue with a lock in period of 30 days.
  • For Companies listed under this framework,, stipulation for triggering open offer has been relaxed from existing 25% to 49%.

2. Business  Responsibility & Sustainability Report

  • New requirements for sustainability reporting by listed entities have been introduced by SEBI. The new reporting called the Business Responsibility and Sustainability Report (BRSR) will replace the existing Business Responsibility Report (BRR).
  • The BRSR will be applicable to the top 1000 listed entities (by market capitalization), for reporting on a voluntary basis for FY 2021 – 22 and on a mandatory basis from FY 2022 – 23.

3. Amendments in SEBI (Alternative Investment Funds) Regulations, 2012

  •    Removal of restricted activities or sectors from the definition of Venture Capital Undertaking to provide flexibility to Venture Capital Funds registered under Category I Alternative Investment Funds (AIFs)in making investments
  • Allow AIFs, including Fund of AIFs, to simultaneously invest in units of other AIFs;
  • Prescribe a Code of Conduct for AIF , Trustees , Directors , Managers , & Key Managerial Personnel of the AIF .

4. Review of regulatory framework for reclassification of promoter/ promoter group entities

  • Exemption from seeking approval of shareholders if the promoter seeking reclassification holds less than 1% shareholding subject to the promoter not being in control.
  • The time gap between the date of board meeting and shareholders meeting for consideration of reclassification request has been reduced to a minimum of one month and a maximum of three months from the existing requirement of minimum period of three months and maximum six months.

5. Amendments in SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

  • Formulation of Dividend Distribution Policy will be applicable to the top 1,000 listed companies on the basis of market capitalization
  • In case of board meeting held for more than one day, financial results must be disclosed by the listed entities within 30 minutes of end of the board meeting for the day on which the financial results are considered.
  • The timelines for submission of periodic reports viz. statement of investor complaints, corporate governance report and shareholding pattern will be harmonized to 21 days from the end of each quarter
  • The requirement to constitute the Risk Management Committee (RMC) has been extended to the top 1,000 listed entities by market capitalization from the existing top 500 listed entities.

6.Amendments in SEBI (Delisting of Equity Shares ) Regulations ,2009

  • Promoter/acquirer will be required to disclose their intention to delist the company by making an initial public announcement
  • The committee of independent directors will be required to provide their reasoned recommendations on the proposal for delisting
  • Timelines for completion of various activities forming part of delisting process have been introduced / revised to make the process more efficient .

7.Amendment in SEBI (Portfolio Managers) Regulations,2020 

  • Portfolio Managers will have to obtain prior approval of SEBI  for change in control.

These changes will make the stock markets more investor friendly as the scope of vigilance is broadened and at the same time accessibility and exit procedures too have been made thorough and simplified.

Reach out

Find us at the office

Gieser- Madigan street no. 4, 89728 Tokyo, Japan

Give us a ring

Danyelle Malanche
+96 551 917 434
Mon - Fri, 10:00-17:00

Tell us about you