Mumbai
The Securities and Exchange Board of India (SEBI) board, in its recent meeting, announced a series of relaxations in guidelines for small not-for-profit organizations (NPOs) and non-government organizations (NGOs) seeking to raise funds through social stock exchanges (SSEs). The key changes include reducing the minimum fund-raising size to Rs 50 lakh, halving the previous requirement. SEBI also introduced a regulatory framework for index providers, aimed at enhancing transparency and accountability in the governance and administration of financial benchmarks in the securities market. Additionally, the board approved the entry of small and medium real estate investment trusts (SM REITs) into the public market for fundraising. SM REITs with a minimum asset value of Rs 50 crore are now eligible, a significant reduction from the previous threshold of Rs 500 crore. Furthermore, SEBI addressed concerns related to the delisting of companies, emphasizing the need for more data before considering changes to delisting rules. SEBI Chairperson Madhabi Puri Buch stated that the regulator would not intervene in the primary offer market to control the clustering of IPOs within a short span, asserting that merchant bankers and the market system are well-equipped to handle such situations. In a forward-looking move, SEBI announced expectations for the Indian stock market to transition to a T+0 trade settlement cycle by March 2024. This implies that buyers will receive shares in their demat accounts by the end of the trading day, marking a significant shift in settlement practices.
