SEBI (Securities and Exchange Board of India) has recently brought a lot of changes in its board meeting held on September 30, 2022. This includes, developing a framework for facilitating online bond service providers, including mutual fund units as per insider trading regulations, permitting pre-filling of IPOs, offering flexibility in approving appointments, removing independent directors, disclosing KPIs, and monitoring preferential issue proceedings and QIPs.

Issuers must make a KPI disclosure based on past fundraisings or transactions. This is done based on acquiring shares within 18 months prior to IPO. If no transactions are made, the disclosure will happen for price per share depending on the last five transactions within the last three years.

IPO issuers can pre-file documents to carry out interactions without making information public. The document on SEBI’s initial observations will be accessible to investors for 21 days. Pre-filling preserves the financial information and other confidentialities of businesses from competitors till the launch. The Board decides to bring mutual fund units under SEBI Regulations, 2015.

Ms.Buch, Chairperson SEBI, said that the regulator is reviewing the issues on recent SC rulings against SEBI as per insider trading concerns. She also stated that the beneficial owners of FPIs will be overlooked from a global perspective with the existing PMLA norms.

SEBI proposed to include the mutual fund units in the purview of insider trading regulations on July 8th, 2022. The regulators have made an appointment for independent directors. If it does not get the requisite majority, then the majority of minority shareholders will be tested. If the voting process becomes favourable, the resolution gets approved by the shareholders in ID appointments.

The Board has allowed the F&O segments on the expiry of stock to make an efficient settlement. While the regulator approves monitoring the QIP issue, online bond service providers have to register the SEBI under the debt sector of stock exchanges. The Board will be prescribing a timeline to declare the scheme closure of the alternative investment fund and the corpus of the first close.

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