SEBI Updates: Outcome of SEBI's Board meeting

SEBI had its board meeting on 21st June, 2018 to discuss many important issues.

Following are few of important decisions taken by SEBI in its meeting dated 21st June, 2018

1. Review of SEBI (SAST) Regulations, 2011

It has been decided to grant additional time for upward revision of open offer price till one working day before the commencement of the tendering period

2. Replacing SEBI (Buy-back of Securities) Regulations, 1998 with new SEBI (Buy-back of Securities) Regulations, 2018

The Board has approved reframing a new set of SEBI (Buy-back of Securities) Regulations, 2018 (“new Buyback Regulations”) in lieu of the extant Buyback Regulations, 1998 to be in consistent with Section 68 and Section 70 of Companies Act, 2013

3. New SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

The Board approved the proposed SEBI (Issue of Capital and Disclosure Requirements) Regulations, (“ICDR Regulations”) 2018 after considering the recommendation of the Primary Market Advisory Committee (PMAC) and the public comments on the Consultation Paper.

Some of important changes which are proposed in new ICDR, 2018

• Threshold for submission of draft letter of offer to SEBI in case of rights issues to be increased to Rs. 10 Crores from Rs. 50 Lakhs.
• Shortfall of up to 10% in minimum promoters’ contribution may be met by institutional investors
• For a company to be eligible to make a fast track rights issue, it should not have any audit qualifications or adverse opinion.
• Minimum Anchor investor size to be reduced to Rs. 2 Crore from the existing Rs. 10 Crore.
• The shareholding threshold for identifying promoter group has been revised from 10 percent to 20 percent.

4. Role of Sub-broker vis-a-vis Authorized Person

The Board considered and approved the proposal to discontinue the category of Sub-Brokers as Market Intermediaries. No fresh registration shall be granted as Sub-Brokers. Registered Sub-Brokers shall migrate to Authorised Persons or Trading Members as the case may be and Sub-Brokers, who do not choose to migrate, shall be deemed to have surrendered their registration as Sub-Broker.

5. Establishment of National Centre for Financial Education (NCFE)

The Board approved the establishment of National Centre for Financial Education (NCFE) to undertake financial education activities in terms of the National Strategy for Financial Education (NSFE) as approved by the Sub-Committee of Financial Stability and Development Council (FSDC-SC)

You can find below the complete outcome of SEBI's board meeting dated 21st June, 2018