Markets regulator Sebi today relaxed takeover norms for the acquisition of stressed assets to help the government and the RBI in their efforts to tackle bad loans. After a board meeting here today, Sebi Chairman Ajay Tyagi said the regulator has decided to ease norms for the acquisition of distressed assets of listed companies. The board also approved a proposal to tighten the rules for participatory notes through the imposition of a regulatory fee on issuers of such instruments.
Tyagi, however, said there is no proposal to completely ban these instruments as they can be useful for new foreign investors looking to test the Indian markets. “Sebi would want foreign investors to come directly but P-notes also have their usefulness,” Tyagi told reporters here.
Besides, Sebi would issue discussion paper for easier registration of foreign investors. Another discussion paper would be floated for ways to help develop equity derivatives markets.