SEBI Board meeting
The Board met today in Mumbai and took the following decisions:
1. Business Responsibility Reports
In order to assess fulfillment of the environmental, social and governance responsibilities of listed entities, it has been decided to mandate listed entities to submit Business Responsibility Reports, as a part of their Annual Reports, describing measures taken by them along the key principles enunciated in the ‘National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business’ framed by the Ministry of Corporate Affairs (MCA). To start with, the requirement will be applicable to top 100 companies in terms of market capitalisation and would be extended to other companies in a phased manner.
2. Tenure for conversion of warrants issued along with public/rights issues
Presently, the Regulations are silent on the tenure of warrants offered along with public/rights issues. It has been decided to specify a maximum tenure of 12 months for warrants issued along with public/rights issue of securities to avoid the possible misuse. The issuer would also be required to provide disclosures about utilisation of funds so raised, both in the offer document as well as on a continuous basis.
3. Review of policy on ‘Anchor Investors’
The concept of Anchor Investors (AIs) was introduced by SEBI in June 2009 as a class of committed investors who can be relied upon to anchor an issue of capital in all market conditions, adverse or otherwise. To make the concept more effective, it has been decided to prescribe a minimum allotment size of Rupees Five crore and maximum number of AIs, slab-wise.
4. Disclosures where Funds are shown as promoters
Considering the constraints in disclosure by investee companies regarding Funds (such as Venture Capital Funds, etc.) which are shown as one of the promoters of such investee company, it has been decided to specify a separate set of disclosures for them.
5. Review of net worth for Debenture Trustees
The Board approved amendment to Regulation 7A of the SEBI (Debenture Trustee) Regulations, 1993 to increase the net worth requirement of Debenture Trustees from existing Rupees One crore, which was fixed as back as 2003, to Rupees Two crore. The Board also approved to grant a time period of two years to existing Debenture Trustees, from the date of notification of Regulations, to the new level.
Mumbai
November 24, 2011
