In a series of reforms, capital market regulator Sebi’s board cleared easing of norms to kick-start startup listings and allowed mutual funds to segregate distressed assets to safeguard investment returns. The Sebi board also approved a proposal to expand the offer-for-sale mechanism for reduction of stake in listed companies and relaxed clubbing of investment limit norms for well-regulated foreign investors. Sebi board decided that the clubbing of investment limit for FPIs should not be done on the basis of same set of beneficial owners. The regulator said it will carry out necessary amendments to FPI regulations and issue necessary guidelines to implement the changes. Besides, the regulator said that an earlier proposed exercise for determining a uniform bond valuation methodology to be followed by all regulated entities across the financial sector would not be pursued. However, Sebi will prescribe high-level principles to be followed uniformly across all mutual funds for strengthening the existing system of valuation of corporate bonds for mutual funds. Regarding the pricing agencies, the regulator has decided to evolve a supervisory and regulatory framework.

(Economic Times)