The Securities and Exchange Board of India (SEBI) has taken a significant step towards enhancing the ease of doing business in the financial sector. In response to the Union Budget Announcement for FY 2023-24, SEBI has initiated a process to simplify regulations, reduce compliance burdens, and lower associated costs. This article delves into SEBI’s endeavors and how stakeholders can participate in shaping these changes.
Detailed Analysis
Budget Announcement: The Union Budget for FY 2023-24 emphasized the need to simplify, ease, and reduce the cost of compliance in the financial sector. As a result, SEBI, India’s financial regulator, is tasked with reviewing its existing regulations with the goal of streamlining them.
Constitution of Working Groups: In alignment with the Budget Announcement, SEBI has formed 16 Working Groups. These groups, operating under the guidance of its standing Advisory Committees, are responsible for assessing compliance requirements across various SEBI Regulations. The focus is on regulations affecting entities such as equity and debt listed companies, Mutual Funds, Stock Brokers, Alternative Investment Funds, REITs/InvITs, Portfolio Managers, Custodians, Investment Advisers, and Research Analysts.
Call for Public Input: SEBI recognizes the importance of gathering input from the public and regulated entities in this comprehensive review process. Stakeholders are invited to contribute their suggestions on simplifying, easing, and reducing the cost of compliance. This collaborative approach aims to create a regulatory environment that is conducive to growth and innovation.
Regulations Under Review: SEBI has identified specific regulations for review, and stakeholders are encouraged to provide feedback on them. These regulations encompass a wide range of financial entities and include Portfolio Managers, Mutual Funds, Stock Brokers, Depository Participants, Registrar and Share Transfer Agents, KYC Registration Agencies, Investment Advisers, Research Analysts, Alternative Investment Funds, Foreign Portfolio Investors, Custodians, Debt Issuers, Debenture Trustees, REITs, InvITs, Equity Listed Companies, Merchant Bankers, Banker to an Issue, Stock Exchanges, Clearing Corporations, Depositories, and Credit Rating Agencies.
Submission Guidelines: To participate in this regulatory reform process, stakeholders can send their suggestions to the designated email IDs associated with the respective regulations by November 06, 2023. Submissions should follow a specific format, including the regulation name, suggestion, and rationale.
Conclusion
SEBI’s initiative to simplify regulations, enhance compliance ease, and reduce costs is a commendable step towards fostering a business-friendly environment in the financial sector. Stakeholders, including the public and regulated entities, have a unique opportunity to contribute their insights and ideas to shape these changes. By actively participating in this collaborative effort, they can help create a regulatory framework that supports growth, innovation, and the overall development of India’s financial markets. The deadline for submitting suggestions is November 06, 2023, and we encourage all concerned parties to seize this opportunity to make their voices heard. Together, we can work towards a more efficient and dynamic financial sector in India.
*******
Securities and Exchange Board of India
PR No.24/2023
Working Groups to recommend on simplification, ease of compliance and reduction in cost of compliance; suggestions invited
One of the Budget Announcements in the Union Budget for FY 2023-24, was as follows:
“To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For this, they will consider suggestions from public and regulated entities…… ”
Pursuant to the Budget Announcement, SEBI has constituted Working Groups to recommend simplification of various SEBI Regulations. The Working Groups will also look into the compliance requirements to enhance ease of compliance and reduction in cost of compliance. At present, 16 Working Groups, under the aegis of its standing Advisory Committees, are reviewing compliance requirements under various SEBI Regulations applicable for various regulated entities, such as equity and debt listed companies, Mutual Funds, Stock Brokers, Alternative Investment Funds, REITs/InvITs, Portfolio Managers, Custodians, Investment Advisers, Research Analysts, etc.
Suggestions towards simplifying, easing and reducing cost of compliance with respect to the various regulations listed below, are invited from the public and regulated entities.
| S. No. | Regulated entity | Name of Regulation under review | Email ID for sending suggestion |
| 1 | Portfolio Managers | SEBI (Portfolio Managers) Regulations, 2020 | pms_comments@sebi.gov.in |
| 2 | Mutual Funds | SEBI (Mutual Funds) Regulations, 1996 | mf_comments@sebi.gov.in |
| 3.1 | Stock Brokers | SEBI (Stock Brokers) Regulations, 1992 | consultation_sbdp@sebi.gov.in |
| 3.2 | Depository Participants | SEBI (Depositories and Participants) Regulations, 2018 | consultation_sbdp@sebi.gov.in |
| 4 | Registrar and Share Transfer Agents | SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 | consultation_rta@sebi.gov.in |
| 5 | KYC Registration Agencies | SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011 | consultation_kra@sebi.gov.in |
| 6.1 | Investment Advisers | SEBI (Investment Advisers) Regulations, 2013 |
consultation_iara@sebi.gov.in |
| 6.2 | Research Analysts | SEBI (Research Analysts) Regulations, 2014 | consultation_iara@sebi.gov.in |
| 7 | Alternative Investment Funds | SEBI (Alternative Investment Funds) Regulations, 2012 | aif-suggestion@sebi.gov.in |
| 8 | Foreign Portfolio Investors | SEBI (Foreign Portfolio Investors) Regulations, 2019 | fpi-suggestion@sebi.gov.in |
| 9 | Custodians | SEBI (Custodian) Regulations, 1996 | custodian-suggestion@sebi.gov.in |
| 10 | Debt Issuers |
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 | ddhs-lodr_debt@sebi.gov.in |
| SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 | ddhs-ncs@sebi.gov.in | ||
| 11 | Debenture Trustees | SEBI (Debenture Trustees) Regulations, 1993 |
ddhs-dt@sebi.gov.in |
| 12.1 | REITs | SEBI (Real Estate Investment Trusts) Regulations, 2014 | ddhs-reit@sebi.gov.in |
| 12.2 | InvITs | SEBI (Infrastructure Investment Trusts) Regulations, 2014 | ddhs-invit@sebi.gov.in |
| 13.1 | Equity Listed Companies |
SEBI (Delisting of Equity Shares) Regulations, 2021 SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 SEBI (Buy-back of Securities) Regulations 2018 SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 | consultationcfd@sebi.gov.in |
| 13.2 | Merchant Bankers | SEBI (Merchant Bankers) Regulations, 1992 | consultationcfd@sebi.gov.in |
| 13.3 | Banker to an Issue | SEBI (Bankers to an Issue) Regulations, 1994 | consultationcfd@sebi.gov.in |
| 14 | Equity Listed Companies |
SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 | consultationcfd@sebi.gov.in |
| 15.1 | Stock Exchanges, Clearing Corporations | Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 | manisht@sebi.gov.in |
| 15.2 | Depositories | SEBI (Depositories and Participants) Regulations, 2018 | pankajc@sebi.gov.in |
| 16 | Credit Rating Agencies | SEBI (Credit Rating Agencies) Regulations, 1999 | ddhs-cra@sebi.gov.in |
Suggestions pertaining to specific regulations listed above may be sent to the email IDs mentioned against them latest by November 06, 2023 in the format given below:
| Sl. No. | Name of Regulation | Regulation no. |
Suggestion | Rationale |
Mumbai
October 04, 2023
