SEBI proposes number of initiatives to make market ecosystem to be future-ready

Securities & Exchange Board of India (SEBI), noted in its latest annual report that it aims to nurture the securities market ecosystem to be future-ready to navigate the dynamic market landscape and has noted a number of initiatives that it intends to undertake. SEBI has proposed to simplify the offer document preparation process by designing a template-based approach for relevant sections of an offer document.

The market regulator noted that offer documents are typically large in size and contain a lot of detailed disclosures on several aspects of an issuer company. There is a general perception that preparing an offer document is a difficult process and the information to be provided is immense and repetitive. SEBI has also proposed a comprehensive review of margin trading funding (MTF).

SEBI has also talked about allowing FPIs in non-cash settled commodity derivative contracts. With a view to facilitate ease of doing business as well as to enhance participation of FPIs, SEBI would be reviewing the existing framework and exploring the alternatives to allow FPIs in non-cash settled non-agricultural commodity derivative contracts.

It has also highlighted use of digital signature by FPIs. SEBI noted that use of Digital Signature by FPIs can substantially reduce timelines for processing of registration applications. FPI Outreach Cell of SEBI is exploring the feasibility of offering digital signature from an Indian licensed certifying authority as a value-added service to FPI applicants based on the documentation submitted as part of the common application form.

Other measures include initiatives for investor education and grievance redressal, Alternative investment funds framework, Market intermediaries and mutual fund framework etc.

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