Securities and Exchange Board of India
Press Releases No.8/2022
SEBI Board Meeting
The SEBI Board met in Mumbai today and inter-alia, took the following decisions:
I. Amendment to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for simplification of procedure for transmission of securities
1. The Board approved the proposal to amend the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for simplification of procedure for transmission of securities.
2. The amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are summarized as under:
a. The existing threshold limit for simplified documents has been revised from Rupees Two Lakhs to Rupees Five Lakhs for securities held in physical mode per listed issuer and Rupees Five Lakhs to Rupees Fifteen Lakhs for securities held in dematerialized mode for each beneficiary account.
b. Legal Heirship Certificate or its equivalent certificate issued by competent Government authority will be an acceptable document for transmission of securities.
3. The objective is to ensure that uniform processes are followed by the Registrars to an Issue and Share Transfer Agents (RTAs) / listed companies which would further ease the transmission process for investors.
II. Amendments to SEBI (Collective Investment Schemes) Regulations, 1999
The Board approved amendment to SEBI (Collective Investment Schemes) Regulations, 1999 to strengthen the regulatory framework for Collective Investment Schemes (CIS) in line with Mutual Fund regulations to remove regulatory arbitrage. Some of the key amendments are as follows:
1. Enhancement of net-worth criteria and requirement of having track record in relevant field as an eligibility requirement for registration as a Collective Investment Management Company (CI MC).
2. CIMC and it’s group/ associates/ shareholders are restricted to 10% shareholding or representation on board of another CIMC to avoid conflict of interest.
3. Mandatory investment of CIMC and its designated employees in the Collective Investment Schemes (CIS) to align their interest with that of the CIS.
4. Mandatory requirement of minimum number of investors, maximum holding of a single investor and minimum subscription amount at CIS level.
5. Rationalization of fee and expenses to be charged to the scheme.
6. Reduction of timelines for offer period of scheme, allotment of units and refund of money to investors.
III. Enabling Custodians to provide custodial services in respect of silver exchange traded fund schemes of mutual funds (‘silver ETFs’):
The Board considered the proposal and approved the amendments to the SEBI (Custodian) Regulations, 1996, to enable SEBI registered Custodians to provide custodial services in respect of silver or silver related instruments held by silver ETFs of Mutual Funds.
IV. Budget Estimates for the Financial Year (FY) 2022-23
The SEBI Budget for the financial year 2022-23 was considered and approved by the Board.
Mumbai
March 29, 2022
