The Reserve Bank of India (“RBI”) on 6th October 2015, through A.P. (DIR Series) Circular No. 19, relaxed the norms for investment by Foreign Portfolio Investors (FPIs) in government debt and also announced higher investment limits in rupee terms in government securities with a view to bring in an Rs. 1.2 lakh crores by March 2018, over and above the existing limit of Rs 1.5 lakh crores. The Medium Term Framework (“MTF”) for FPI limits in Government securities has been announced to provide a more predictable regime.
Also, with RBI easing foreign ownership in government debt, markets regulator SEBI issued detailed guidelines for hiking the overseas investment limits in such securities to Rs 1.86 lakh crores by January 1, 2016.
This article will provide a summary of the features of MTF issued by the RBI and SEBI.
Articles on "SEBI"
Investment by Foreign Portfolio Investors in Government Securities
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Date posted: Saturday 26 September 2015
Laws:SEBI
SEBI in its board meeting on 19th November 2014 had discussed the conversion of existing listing agreements into a single comprehensive regulation for various types of listed securities. Finally, the SEBI has, on 2nd September, 2015, notified the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) replacing the Listing agreement. The SEBI Listing Regulations aim to consolidate and streamline the existing listing agreements for different segments of the capital market into one single document across various types of securities listed on the stock exchanges. This article will provide you with a summary of the key highlights of the SEBI Listing Regulations with a special focus on provisions of the SEBI Listing Regulations effective from 2nd September, 2015.
Introduction of New Regulations for listing of entities on Institutional Trading Platform by SEBI
As per U.K.Sinha (SEBI Chairman), in India, technological start-ups have crossed 3,000 and the way the new start-ups are coming up at the rate of almost 800-1,000 per year, it is expected that the number of technological start-ups would cross 10,000 start-ups by 2020. A large number of start-ups will be looking to raise funds. In order to encourage the Indian start-ups and entrepreneurs to remain within the country rather than moving abroad for funds, SEBI has introduced changes in the existing norms for listing on Institutional Trading Platform (”ITP”). The existing Chapter XC of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 – “Listing and Issue of Capital by Small and Medium Enterprises on Institutional Trading Platform without Initial Public Offering” which was introduced in October, 2013, has been replaced by new Chapter XC named “Listing on Institutional Trading Platform”.
The existing regulations already allowed SMEs to list themselves on ITP without a public issue. Amongst many other advantages, these new norms have done away with various eligibility criterion which laid restrictions on the turnover, paid-up capital, years the company has been in existence, etc. The new regulations provide the option for listing on ITP with or without a public offer. This article shall provide you with a summary of these newly introduced regulations.
Changes in norms by SEBI for faster IPO, Simplified listing of start-ups, etc.
Date posted: Saturday 27 June 2015
Laws:SEBI
The Securities and Exchange Board of India (“SEBI”), in its Board meeting on 23rd June, 2015, has brought about some important changes. The changes brought about include relaxation of the listing norms for start-ups to encourage them to tap the local market and open up dramatic growth opportunities for the investors. SEBI, in its meeting, also decided to streamline the process of Public issues through ASBA mechanism, reduce the market capitalization requirement for companies to use fast-track Follow on Public Offerings (FPOs) and Rights issues , given situations and conditions subject to which promoters may be reclassified as public, instructions of interim use of funds by issuer, etc. This article is aimed to provide a more detailed understanding of each of the above changes, based on the press release no. 167/2015 by SEBI.
Changes in SEBI Regulations to allow conversion of debt into equity by banks and financial institutions
Date posted: Saturday 9 May 2015
Laws:SEBI
In the SEBI Board meeting held on 22nd March, 2015, the Board approved a proposal, prepared in consultation with RBI, to relax the applicability of certain provisions of the SEBI (ICDR) Regulations, 2009 and the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 to the conversion of debt into equity of listed borrower companies by the lending institutions. This measure was taken to revive the distressed listed borrower companies and make it simpler for lending institutions to acquire control over the company while restructuring, thereby benefitting all stakeholders.
On 5th May, 2015, via Notification No.- SEBI-NRO/OIAE/GN/2015-16/003 and SEBI-NRO/OIAE/GN/2015-16/004, changes were introduced in the SEBI (Issue of Capital and Disclosure Requirements) Regulations (“ICDR Regulations”) and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations (“SAST Regulations”) respectively to bring in force the proposed and approved relaxations for conversion of debt into equity under Strategic Debt Structuring Scheme. This article will provide an overview of such changes introduced.