The Securities and Exchange Board of India (Sebi) has set up a committee under former cabinet secretary KM Chandrashekhar to standardise and unify the rules regarding foreign investments made under various routes into the capital markets.
According to Sebi chairman UK Sinha, the committee will simplify and standardise the norms regarding investments into the capital markets by all overseas entities such as foreign institutional investors, foreign venture capital investors (FVCIs), qualified financial/ institutional investors (QFIs) and NRIs, and also strengthen surveillance over them.
“We have decided to combine these various routes which are present today into one single route.
IPO ‘safety net’ only a mild solution: The Sebi will soon implement the ‘safety net’ mechanism in initial public offers (IPO) so that promoters and merchant bankers do not price the issue in an aggressive manner. The regulator, however, wants to use the mechanism only in a “mild manner” so that it is not looked upon as another hindrance in the IPO process.
Competitors filing IPO complaints: The Sebi chief said that he was alarmed because of an increasing trend of complaints filed against IPO-bound companies by their competitors.
‘MF mis-selling a fraudulent practice’
Sebi has brought mis-selling of MF schemes under its norms on prohibition of fraudulent and unfair trade practices. The Sebi has inserted an additional clause whereby mis-selling of MF schemes would be deemed to be a fraudulent trade practice. ENS