SEBI Board Holds 208th Meeting on 18th December 2024 in Mumbai to Enhance Capital Market Business Environment.
Banking & Finance
On 18th December 2024, the Securities and Exchange Board of India (SEBI) Board held its 208th meeting in Mumbai to formulate key measures aimed at enhancing the business environment in the capital markets.
- The SEBI (Merchant Bankers) Regulations, 1992, review highlights that Merchant Bankers (MBs), excluding Banks, Public Financial Institutions, and their subsidiaries, will only undertake permitted activities. MBs will be classified into two categories based on their net worth and activities. They must maintain a liquid net worth of at least 25% of the minimum net worth requirement at all times.
- Additionally, the underwriting limit for MBs has been set at 20 times their liquid net worth.
- The rules for IPOs of small firms have been tightened, requiring an issuer to have an operating profit of at least Rs. 1 crore (earnings before interest, depreciation, and tax) from operations for any 2 out of the 3 previous financial years at the time of filing its draft red herring prospectus (DRHP).
Main Point :- (i) The SEBI Board has approved amendments for Securitized Debt Instruments (SDI), stating that the issuance and transfer of SDIs should be listed only in demat form.
(ii) SEBI has introduced a new initiative called the "Past Risk and Return Verification Agency" (PaRRVA) to curb misleading claims regarding investment returns.
(iii) The SEBI Board has increased the threshold for identifying High Value Debt Listed Entities (HVDLES) from Rs. 500 crores to Rs. 1000 crores, aligning it with large corporates, and mandated that custodians maintain a net worth of Rs. 75 crores, to be achieved within 3 years.
About SEBI
Chairperson : Madhabi Puri Buch
Headquarter : Mumbai
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