Mumbai : It will not be easy for fininfluencers to give investment advice through social media platforms. According to media reports, the market regulator Securities and Exchange Board of India (SEBI) is going to prepare a guideline to curb these finfluencers, the draft of which will be ready in the next one or two months. Along with this, market regulator SEBI has approved several proposals, including reducing the time period for listing of public issue (IPO) shares from the existing six days to three days. This move by the regulator will reduce the time taken by the issue issuers to receive their funds and the allottees to receive securities. A total of seven proposals were approved in the meeting of SEBI’s Board of Directors held in Mumbai.
IPO after September 1 will be voluntary
A statement issued by market regulator SEBI said that the revised deadline of T+3 (three days from the date of issue closure) days will be implemented in two phases. It will be voluntary for all public issues opening on or after September 1, 2023 and mandatory in case of issues opening on or after December 1, 2023.
IPO listing time cut by three days
Speaking to reporters after the meeting, SEBI Chairperson Madhavi Puri Buch said the decision to reduce the listing time to three days is a global first and I am sure there will be no problem as it has been tested by all market participants. Have done.
The decision was taken after wide consultations
SEBI said that the decision has been taken after extensive consultation with all stakeholders including large investors, registrars and transfer agents, broker-distributors and banks. The Board of Directors has approved reduction in the time period for listing of shares in public issues to three days from the existing six days from the date of closure (T) of the issue. With this, SEBI has decided to enhance the disclosure requirements for certain categories of Foreign Portfolio Investors (FPIs) while enhancing transparency.
what is the purpose
The new SEBI rules will be applicable for FPIs that concentrate stake in a single corporate group. The move is aimed at preventing possible manipulation of minimum public shareholding (MPS) requirements and possible misuse of the FPI route to protect Indian companies from the risks of opportunistic takeovers. Besides this, other proposals that have been approved include introduction of additional disclosure requirements for foreign portfolio investors and nomination rights on the board of directors for unitholders of infrastructure investment trusts (InvITs) and real estate investment trusts (REITs). Are.
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Enhanced Disclosure Requirements for FPIs
SEBI will also enhance the disclosure requirements for Foreign Portfolio Investors (FPIs). This includes mandating additional disclosures regarding ownership, economic interest and control by FPIs meeting certain criteria and conditions. Apart from this, the regulator will strengthen the investor grievance management mechanism through SCORES (SEBI Grievance Redressal System) and link the new platform with the online dispute resolution system, the statement said.
