Circular on Minimum percentage of trades carried out by mutual funds through RFQ platform

RELEVANT EXTRACT  1.SEBI, vide circular SEBI/HO/IMD/DF3/CIR/P/2020/130 dated July 22, 2020, has  mandated mutual funds to undertake at least 10% of their total secondary market  trades in Corporate Bonds through RFQ platform of stock exchanges. 2.Based on the recommendations of Mutual Fund Advisory Committee (MFAC), in 

Relaxations relating to procedural matters –Issues and Listing

RELEVANT EXTRACT  1.SEBI vide Circular no. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020, granted  one time relaxations from strict enforcement of certain regulations of SEBI (Issue of Capital  and Disclosure Requirements) Regulations, 2018, pertaining to Rights Issue opening upto  July 31, 2020. 2.Based on the representations received

Circular on Swing pricing framework for mutual fund schemes

RELEVANT EXTRACT  SEBI floated a consultation paper on introduction of swing pricing framework for  mutual fund  schemes. Pursuant  to  the feedback  received  on the said  consultation paper and subsequent deliberations in the Mutual Fund Advisory  Committee (MFAC), it has been decided to introduce swing pricing

Risk Management Framework (RMF) for Mutual Funds

RELEVANT EXTRACT  1.In order to ensure that mutual funds render, at all times, high standards of  service, exercise due diligence, ensure proper care in their operations and to  protect the interests of investors, SEBI vide Circular No.  MFD/CIR/15/19133/2002, dated September 30, 2002 prescribed certain  systems,

Clarifications with respect to Circular dated April 28, 2021 on ‘Alignment of interest of Key Employees (‘Designated Employees’) of Asset Management Companies (AMCs) with the Unitholders of the Mutual Fund Schemes’

RELEVANT EXTRACT  SEBI, vide Circular no. SEBI/HO/IMD/IMD-I/DOF5/P/CIR/2021/553 dated April 28, 2021, has provided that a part of the compensation of Key Employees of the AMCs shall be paid in the form of units of the scheme(s) in which they have a role or oversight. Based

Position Limits for Currency Derivatives Contracts

RELEVANT EXTRACT  1. SEBI vide circular CIR/MRD/DP/20/2014 dated June 20, 2014 inter alia prescribed the  position limits in permitted currency pairs. Based on feedback received from Stock  Exchanges/ Clearing Corporations and upon a review of the same, it has been decided to  revise the client

Introduction of T+1 rolling settlement on an optional basis

RELEVANT EXTRACT  1.SEBI, vide circular no. SMD/POLICY/Cir - /03 dated February 6, 2003, shortened  the settlement cycle from T+3 rolling settlement to T+2 w.e.f. April 01, 2003. 2.SEBI has been receiving request from various stakeholders to further shorten the  settlement cycle. Based on discussions with

Revised guidelines for Liquidity Enhancement Scheme in the Equity Cash and Equity Derivatives Segments

RELEVANT EXTRACT  1.SEBI vide circular CIR/MRD/DP/14/2014 dated April 23, 2014 permitted stock  exchanges to introduce liquidity enhancement schemes in the equity cash and equity  derivatives segments to enhance liquidity in illiquid securities. 2.Based on the experience of stock exchanges, it has been decided to modify

Circular on Modalities for implementation of the framework for Accredited Investors

RELEVANT EXTRACT  General 1.Pursuant to public consultation and approval of the SEBI Board, the framework for  “Accredited Investors” (AIs) has been introduced in the securities market. In this regard,  the SEBI (Alternative Investment Funds) Regulations, 2012 (link), SEBI (Portfolio  Managers) Regulations, 2020 (link) and SEBI

Disclosure of shareholding pattern of promoter(s) and promoter group entities

RELEVANT EXTRACT  1.Regulation 31(4) of Securities and Exchange Board of India (Listing Obligations and Disclosure  Requirements) Regulations, 2015 (“LODR”) mandates that all entities falling under promoter  and promoter group be disclosed separately in the shareholding pattern on the website of stock  exchanges, in accordance with

Automation of Continual Disclosures under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015 – System driven disclosures – Ease of doing business

RELEVANT EXTRACT  1.SEBI, vide circular no. SEBI/HO/ISD/ISD/CIR/P/2020/168 dated September 09,  20201, implemented the System Driven Disclosures (hereinafter referred to as  SDD) in phases, under SEBI (Prohibition of Insider Trading) Regulations, 2015  (hereinafter referred to as PIT Regulations). 2.In this regard, attention is drawn to para

Tendering of shares in open offers, buybacks and delisting offers by marking lien in the demat account of the shareholders

RELEVANT EXTRACT  1.SEBI, vide Circular No. CIR/CFD/POLICY CELL/1/2015, dated April 13,  2015 provided the mechanism for acquisition of shares through stock  exchange mechanism pursuant to tender offers for the purpose of  takeovers, buy back and delisting of securities. Subsequently, SEBI vide  Circular No. CFD/DCR2/CIR/P/2016/131, dated

‘Security and Covenant Monitoring’ using Distributed Ledger Technology

RELEVANT EXTRACT  1. SEBI/HO/MIRSD/CRADT/CIR/P/2020/230 dated November 03, 2020 and November 12,  2020 respectively outlined the process of independent ‘due diligence’ by debenture  trustee(s) on assets of an Issuer company for the purpose of creation of security and  ‘periodical monitoring’ of security created and enhanced disclosures

Maintenance of Current Accounts in multiple banks by Mutual Funds

RELEVANT EXTRACT  1. Mutual funds currently maintain current accounts in multiple banks including in  banks having presence beyond the top 30 cities (“B-30 cities”), for receiving  subscription amount and for payment of redemption proceeds / dividend /  brokerage/ commission etc. This enables investors to transact

Requirement of minimum number and holding of unit holders for unlisted Infrastructure Investment Trusts (InvITs)

RELEVANT EXTRACT  Vide notification No. SEBI/LAD-NRO/GN/2021/27 dated July 30, 2021, SEBI (Infrastructure Investment Trusts) Regulations, 2014 ("InvIT Regulations”) were amended to provide for the requirement of minimum number and holding of unit holders for unlisted InvITs. Registered unlisted InvITs which have already issued units as

Permitting non-scheduled Payments Banks to register as Bankers to an Issue

RELEVANT EXTRACT  1. SEBI vide notification dated July 30, 2021, amended the SEBI (Bankers to an  Issue) Regulations, 1994 (BTI Regulations) thereby permitting such other banking  company, as may be specified by the Board, from time to time, to carry out the  activities of Bankers