Here are the key decisions taken by SEBI during its board meeting on 24 March 2025...
Increased Threshold for FPI Disclosure
The SEBI board has approved a significant increase in the threshold for FPI disclosure. The new limit has been raised from Rs25,000 crore to Rs50,000 crore, reflecting the doubling of cash equity market trading volumes between FY22-23 and FY24-25. This move aims to prevent circumvention of SEBI's norms concerning minimum public shareholding (MPS) and substantial acquisition of shares and takeovers (SAST).
At present, certain FPIs with equity assets under management (AUM) exceeding Rs25,000 crore are required to provide granular details of all their investors or stakeholders on a look-through basis.
Revised Rules for Investment Advisers and Research Analysts
SEBI has also introduced a new provision allowing IAs and RAs to charge advance fees for up to one year, compared to the previous limit of six months for IAs and three months for RAs. This revision addresses industry concerns and brings greater flexibility to fee collection, particularly for non-individual and accredited investors.
Governance of Market Infrastructure Institutions (MIIs)
The SEBI board has also reviewed governance norms for MIIs, focusing on the appointment and cooling-off period for public interest directors (PIDs) and key management personnel (KMPs). The existing process for appointing PIDs without shareholder approval will continue, while SEBI will no longer mandate a cooling-off period for PIDs transitioning between MIIs.
Furthermore, the governing board of an MII may set its own cooling-off period for KMPs and directors moving to competing MIIs. Additionally, the appointment of critical KMPs such as compliance officers, chief risk officers, chief technology officers, and chief information security officers will now require the approval of the governing board rather than the nomination and remuneration committee, SEBI says.
Deferral of Regulatory Amendments
The SEBI board has deferred the implementation of amendments to the regulations governing merchant bankers, debenture trustees, and custodians, originally proposed in December 2024. The deferment allows for further internal review and evaluation to ensure a level playing field.
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