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The decision was taken at the regulator's board meeting on Thursday.
Under the norms, the Sebi regulated entities and their agents are barred from having any association directly or indirectly with any other person who provides advice or recommendation in respect to securities.
The regulated entities cannot have any transactions involving money, referral of a client, interaction of information technology systems or any other association with the unregulated ones.
However, the above restriction will not apply to persons regulated by the board or its agents for their association with persons who are exclusively engaged in investor education and do not, directly or indirectly, provide advice/ recommendation/ claim of return or performance.
The restrictions will also not apply to specified digital platforms, which have a mechanism in place to take preventive as well as curative action to ensure that such a platform is not used by any person for providing advice or recommendation with claims of return or performance unless permitted by Sebi to provide such advice or recommendation.
The rules will also now put an onus on the person regulated by the board to ensure that the person with whom it or its agent is associated does not indulge in these prohibited activities.
Flexibility in voluntary delisting
With an aim to promote ease of doing business and to protect the interest of investors, Sebi has provided flexibility in the voluntary Delisting framework. It has approved the introduction of Fixed Price process as an alternative to Reverse Book Building process (RBB) for delisting of companies whose shares are frequently traded. The fixed price offered by an acquirer shall be with at least 15% premium over the floor price as determined under Delisting Regulations.The Sebi board also cleared the deck for introduction of an alternate delisting framework for listed Investment Holding Companies (IHC) through scheme of arrangement by way of selective capital reduction.
A listed IHC will be permitted to transfer the underlying equity shares held by it in other listed companies to its public shareholders proportionately. It will also be permitted to make proportionate cash payments to its public shareholders against other assets including investments in land, building, unlisted companies etc.
IHC that has at least 75% of their fair value (net of liabilities) comprising direct investments in equity shares of other listed companies will be allowed voluntary delisting.
Ease of doing business for FPIs
In order to facilitate ease of doing business for FPIs, the Sebi Board approved a proposal to exempt University Funds and University related Endowments, registered or eligible to be registered as Category I FPI, from additional disclosure requirements.The regulator also green-lighted a proposal to streamline the public issue process for debt securities and Non-Convertible Redeemable Preference Shares. The new rules would enable faster access to funds to issuers through reduction in the period for seeking public comments on the draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers. The board has also allowed reduction in the minimum subscription period to 2 working days from 3 working days.
Ease of doing business for INvITs and (REITS)
The Board approved the following proposals to facilitate ease of doing business related to activities of InvITs and REITs.Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (REs)
The Board has cleared the framework for Sebi regulated entities. The CSCRF framework provides a structured methodology to implement various solutions for cybersecurity and cyber resiliency. CSCRF will assist the regulated entities in strengthening the security posture.Stock's entry,exit from F&O segment
The regulator revised the eligibility criteria for the entry and exit of stocks in the derivatives segment of exchanges. Under the new norms, the criteria for exit shall apply to only those stocks which have completed at least 6 months from the month of entry into the derivatives segment. The last revision in such selection criteria was carried out in 2018.Also Read: Sebi revises eligibility criteria for entry, exit of stocks in derivatives market
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Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price