SEBI Eases Rules for FPIs, Amends Norms for Rating Agencies
Market regulator Securities and Exchange Board of India (SEBI), on Wednesday, eased

 the rules for foreign portfolio investors (FPI) doing away with the broad-based eligibility criteria for FPIs and announced that the registration for multiple investment manager structure would be simplified.
 
FPIs will now be re-categorised into two classes—Category I and II, instead of the present three categories. Besides, the documentation requirements for KYC (know your customer) have been simplified. 
 
Proposing the new regulations for FPIs, SEBI chairman Ajay Tyagi said that central banks shall also be eligible for FPI registration. This decision was taken considering that the central banks are relatively long-term, low-risk investors directly/ indirectly managed by the Government.
 
FPIs will be allowed off-market transfer of securities which are unlisted, suspended or illiquid, to a domestic or foreign investor. Offshore funds floated by Indian mutual funds will be able to invest in India after obtaining registration as FPI. 
 
Some of the other changes announced by SEBI were:
 
Mutual Funds Can Now Invest in Unlisted NCDs
 
SEBI will allow mutual funds (MFs) to invest in unlisted non-convertible debentures (NCDs) up to a maximum of 10% of the debt portfolio of the scheme subject to such investments in unlisted NCDs having simple structures as may be notified from time to time, being rated, secured and with monthly coupons. This shall be implemented in a phased manner by June 2020. Tyagi said the regulator is examining the possibility of allowing MFs to join inter-creditor arrangements.
 
Rating Agencies to Have Quicker Access to Credit Default Information 
 
In order to enable CRAs to have timely information on the default of an entity, SEBI (CRA) Regulations were amended to incorporate an enabling provision in the rating agreement between the CRA and the issuer/ client, providing explicit consent to the CRA to obtain details of the existing and/ or future borrowing of the issuer, its repayment and any delay or default in servicing of such borrowing, either from the lender or any other statutory/ non-statutory organisation maintaining any such information.
 
Review of Buy-backs
 
SEBI shall continue with the current approach of allowing buybacks if post buy-back debt to equity ratio is not more than 2:1 (except for companies for which higher debt to equity has been notified under the Companies Act, 2013) based on both standalone and consolidated basis. Further, if post buy-back debt to equity ratio is not more than 2:1 on standalone basis and exceeding 2:1 on consolidated basis, in such cases, buy-back would be permitted if:
 
i. Post buyback debt to equity ratio is not more than 2:1 on consolidated basis after excluding the subsidiaries that are non-banking financial companies and housing finance companies and are regulated by RBI or National Housing Bank; and
 
ii. All such excluded subsidiaries have debt to equity ratio of not more than 6:1 on standalone basis.
Further, the financial statements will continue to be considered on both standalone and consolidated basis for calculating the maximum permissible buy-back size and other related requirements relating to buy-back size.
 
Innovators Growth Platform (IGP) Cos Permitted to Trade under Regular Category
 
Companies listed for a minimum period of one year on the Innovators Growth Platform (IGP), having minimum 200 shareholders and profitability/net worth track record of 3 years or 75% of its capital held by Qualified Institutional Buyers can apply for trading under regular category.
 
Minimum promoters’ contribution shall be 20% which shall be locked in for 3 years. Period of earlier lock-in of 6 months served at the time of listing on IGP shall be deducted from the stipulated lock-in requirement of 3 years.
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    User

    COMMENTS

    Edukondalum Edukondalum

    2 days ago

    Cibil

    ramchandran vishwanathan

    1 month ago

    It will help if Moneylife can translate the change in regulations to layman language , its impact will help us understand what these regulators are upto

    Ramesh Poapt

    1 month ago

    policy will be more lose at cost. it will be able to hide the core facts.

    Sebi brings stricter penalty for non-compliance of regulatory norms
    Securities market regulator Sebi on Monday came out with stringent norms for regulatory disclosures by listed firms.
     
    A Sebi circular on "non-compliance with certain provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018" issued on Monday prescribes a penalty of Rs 20,000 per day on those listed companies which fail to comply with certain provisions of the ICDR.
     
    The amount of fine realised will be credited to the "Investor Protection Fund" of the stock exchange concerned, the circular added.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Edukondalum Edukondalum

    2 days ago

    Sebi

    Centre working on amendments to RERA: Official
    Union Housing and Urban Affairs Secretary Durga Shanker Mishra on Monday said the government is working towards amending several provisions of the Real Estate Regulations Act (RERA), which will benefit both developers and homebuyers.
     
    Speaking at the 15th national convention of the National Real Estate Development Council (NAREDCO), the official said the Housing Ministry has received several inputs based on which the government would make necessary amendments to the Act.
     
    "We have received very valuable inputs at these workshops. Based on these inputs, we have felt that there is a need to bring about many changes in the RERA Act. We will soon make relevant amendments in the law," Mishra said.
     
    "We will initiate discussions again and make changes in the law wherever required to make it more effective," he added.
     
    On the draft Tenancy Law released last month, the Secretary said that many people have built houses which they do not rent out, but once they get a legal framework by way of a new tenancy law, many new business opportunities would unfold. 
     
    NAREDCO President Niranjan Hiranandani assured the association's complete support to the government in its policy initiatives designed to further streamline the real estate sector.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User

    COMMENTS

    Ramu Triky

    1 month ago

    RERA shd HV format of agreement, which are fair and even....not one-sided as prepared by builders.
    The architect cert shd mention amounts collected, spent and balance. Value of construction done and future costs.
    The site must be made accessible to buyers and they must HV an overview of their flat, like direction, etc....not sample flats.
    Cost sheet must be final, no additions later on. Assurances on water supply in case there is shortage, responsibility and costs on builders.
    And transport to nearest Rly/Bus station. They cannot just build in far-off places and put buyers in difficulties due to poor transport or amenities.
    The list of those who HV booked must be made available. So, that buyers can get in touch with each other.
    Sale deed, conveyance and society formation must be done within 6 months of giving possession to first buyer....by this time OC must be obtsined.
    All responsibilities vest on the developer reg quality construction, amenities, etc. Any defects in titles or construction or permissions wud HV to be set right by builder or his next project would be impacted....by STAY ORDER.
    It is the builder, who makes profits.
    No letters or undertakings from purchasers would absolve the builder from defects in the project .

    The purchasers shd not be put to risk or trouble for builders defects.

    Ramu. 20/8/19

    REPLY

    Vivek Upadhyay

    In Reply to Ramu Triky 1 month ago

    Quite a few good points. Please also write to minister concerned and PMO.

    Ramu Triky

    1 month ago

    Ramu

    Ramu Triky

    1 month ago

    Ramu

    We are listening!

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