Exchanges to introduce shared co-location facilities to reduce cost: Tyagi

Sebi to reduce additional expenses charged on mutual funds; Sebi plans to amend takeover regulations, permit additional time for entities to increase open offer price

In its last meeting of FY18, the Securities and Exchange Board of India (Sebi) took a host of decisions, including ways to strengthen algo trading, mutual funds etc.

Sebi board accepted 40 recommendations of Uday Kotak panel without modifications and 15 recommendations were accepted with modifications. 

The Uday Kotak panel was set up to improve corporate governance standards.

Stock exchanges to introduce shared co-location facilities to reduce cost, says Sebi chairman Ajay Tyagi. 

Sebi to reduce additional expenses charged on mutual funds, which will help in lowering investment costs, says Tyagi. 

Sebi said on Wednesday it will take steps to make algorithmic trading cheaper for investors, even as it called for stricter monitoring of such trades amid concerns about fair access to markets.

The measures include providing tick by tick data feed to all trading members free of charge and shared co-location services, the market regulator said in a release after a board meeting.

Among other decisions taken at Wednesday's meet is that maximum number of directorship in listed companies will be capped at seven by April 1, 2020.

Sebi plans to amend takeover regulations, permit additional time for entities to increase open offer price. 

"Sebi is in advanced stage of enquiry in National Stock Exchange co-location case," said Tyagi. 

(Uday Kotak is executive vice chairman and managing director of Kotak Mahindra and associates who are predominant shareholders in Business Standard Pvt Ltd)