Sebi board meeting: Key decisions on AIFs, NPOs, REITs, index providers

Sebi held its quarterly board meeting in Mumbai on Saturday where it approved several key decisions including providing flexibility for fund raising by NPOs through the social stock exchange

Markets watchdog Sebi on Saturday approved providing flexibility to Not for Profit Organisations (NPOs) in raising funds through the social stock exchange and also decided to introduce a regulatory framework for index providers.
 

These were among the decisions taken by the board of the Securities and Exchange Board of India (Sebi) during its meeting held here.
 

In a release, the regulator said flexibility will be provided for fundraising by NPOs through the social stock exchange.
 

In this regard, the minimum issue size in case of public issuance of Zero Coupon Zero Principal Instruments (ZCZP) for NPOs on the social stock exchange will be reduced to Rs 50 lakh from Rs 1 crore.
 

Among other decisions, a regulatory framework will be introduced for the index providers to foster transparency and accountability in governance and administration of financial benchmarks in the securities market.

Sebi also said it will regulate online platforms offering fractional ownership of real estate assets, and such platforms will be registered under the framework for small and medium reits.
 

In a press statement issued after its quarterly board meeting, Sebi also said that all fresh investments by alternate investment funds would be held in demat form starting Sept. 2024.
 

Sebi chairperson Madhabi Puri Buch said after the board meeting that investors are losing money in equity derivatives trading, which, she said, was a worry and it was the regulator's duty to warn.
 

But, on a systematic level, Buch said, "we do not see a concern due to increased activity in equity derivatives trading".
 

The regulator also approved rules for index providers, and will identify significant indices that are frequently used by market participants in India, which will come under Sebi rules.