The SEBI Board met in New Delhi today and took the following decisions:
1. Reservation to Holders of Convertible Debt Securities in Rights/Bonus Issues
On the issue of reservation to convertible debt holders in rights/bonus issues, it has been decided to clarify that reservation shall be available only to compulsorily convertible debt holders, since conversion in such cases is not at the option of the holders of these instruments.
2. Waiver of Certain Requirements Relating to Preferential Allotment to Insurance Companies and Mutual Funds
It has been decided to exempt Insurance Companies and Mutual Funds which are broad based investment vehicles representing the interests of the public at large from the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations relating to sale and lock-in of their per-preferential shareholding in the issuer company. Presently, SEBI (ICDR) Regulations preclude companies from issuing preferential allotment to entities who have sold any of their holdings during the six month period prior to relevant date. Further, allottees in preferential allotment are required to lock-in their entire per-preferential holdings for a period of six months from date of preferential allotment. The lock-in on shares allotted in preferential issue per se, however, would remain unchanged.
3. Amendment to SEBI (Mutual Fund) Regulations, 1996
a. Amendment relating to Advertisement Code
b. Amendment relating to Investment Valuation Norms
In order to provide for fair valuation of securities/assets of Mutual Fund schemes, the following proposed changes in the SEBI (Mutual Fund) Regulations, 1996 are approved by the Board:
4. Amendment to SEBI (Portfolio Managers) Regulations, 1993
The Board decided to amend the SEBI (Portfolio Managers) Regulations, 1993 to give effect, inter alia, to the following:
The proposed amendment would be applicable on prospective basis for new clients and for fresh investments by existing clients.
January 28, 2012
Source-PR No. 15/2012
SEBI Board Meeting