SEBI board meeting 2024: The Securities and Exchange Board of India (SEBI) will hold its board meeting today and will likely discuss matters like tighter norms for Futures & Options (F&O) trading, the introduction of ‘New Asset Class’ and mutual fund lite regulations. Interestingly, the SEBI board meeting is the first since Hindenburg Research leveled allegations against Chairperson Madhabi Puri Buch. The allegation involved an investment in an offshore fund allegedly having links to Adani Group and Madhabi Buch’s ownership in consulting entities.Besides this, SEBI’s board meeting also follows a protest by its employees who had written a letter to the Finance Ministry raising concerns over a toxic work culture and demanding a change in senior leadership.
Key agenda of the board meeting
Among the key proposals is the launch of a new product that combines rights issues with preferential allotment of shares. The board members are also expected to clear the proposals to introduce ‘New Asset Class’, which was proposed earlier in July. This would offer investment products between mutual funds and portfolio management services (PMS). This asset class will likely come with a minimum investment limit of Rs 10 lakh, catering to high-net-worth individuals.
Further, SEBI is also expected to address mutual fund lite regulations, which aim to streamline compliance for passively managed mutual fund schemes. The relaxed regulatory framework for passive MF schemes can make it easier for retail investors to diversify their portfolios with lower compliance costs, and increasing participation in the mutual fund market.
And the most anticipated discussion will be tighter regulations for Futures & Options (F&O) trading, which has remained an area of concern for the government and other regulators, due to high levels of speculative trading. SEBI had, earlier in July this year, proposed measures including restricting multiple option contract expiries, raising the size of option contracts, and introducing intraday monitoring of position limits.
Additionally, SEBI will also discuss easing Foreign Institutional Investor (FII) investments in India.
Other issues that the board members will discuss during its meeting today will be the allegations by Hindenburg Research that Madhabi Puri Buch and her husband Dhaval Buch had investments in offshore funds that were controlled by Vinod Adani, Gautam Adani’s brother. The US short seller had earlier accused the Adani Group of manipulating funds and inflating stock prices of its listed companies in India. The regulator, headed by Madhabi Buch, had probed the allegations against the company and given it a clean chit.
Also, the board members will talk on employee matters that came up after the reports suggested that SEBI employees had written a letter to the Finance Ministry raising concerns over a toxic work culture and demanding a change in senior leadership. According to reports, a letter dated August 6 signed by 500 Sebi employees accused the leadership of using harsh and unprofessional language, and setting unrealistic targets. Following this statement, a group of employees had gathered to protest outside the office, within SEBI premises, and said that the purpose of their demonstration was to show dissent and unity against what they call a press release with a fake narrative against all SEBI employees. The protest was subsequently called off on September 5.