SEBI Clears Tighter Norms For Related Party Transactions Among Other Measures

SEBI has approved a slew of measures like tightening of norms for related party transactions and delisting rules among others

SEBI Clears Tighter Norms For Related Party Transactions Among Other Measures

Markets regulator SEBI today announced a slew of norms during its board meeting

Markets regulator SEBI on Tuesday approved a slew of measures, including tightening of norms for related party transactions, relaxing rules for issuance of shares with superior voting rights in technology companies and delisting norms.

The board also cleared frameworks for gold exchange and social stock exchange (SSE) for fundraising by social enterprises, Sebi said in a statement.

In a significant move, the SEBI board has approved amendments to norms to enable the introduction of Silver Exchange Traded Fund (ETFs) with certain safeguards in line with the existing regulatory mechanism for Gold ETFs.

In its meeting on Tuesday, the board expanded the definition of the related party transactions. It has decided to make it easier for acquirers to delist equity shares after an open offer.

Apart from these, the regulator cleared an investor charter for investors in the securities market. The charter includes the vision statement of SEBI for investors, mission statement, rights and responsibilities of investors, do's and don'ts for investors in the securities market among others.

It has been decided to allow resident Indians, other than individuals, to become constituents of foreign portfolio investors (FPIs) that are registered as AIFs in IFSCs.

This is to facilitate investment in Indian securities markets through the FPI route by AIFs set up in International Financial Services Centres (IFSCs).

Among others, the regulator has given its nod for allowing Category III AIFs (Alternative Investment Funds) to calculate concentration norms based on the net asset value of the fund instead of investable funds for investment in listed equities of investee companies.