Sebi defers key market reforms due to disruption caused by pandemic

The regulation was aimed at increasing voting participation and improving corporate governance standards

The Securities and Exchange Board of India (Sebi) has deferred the implementation of key market reforms on account of the disruption caused by the pandemic.

The areas in which Sebi extended the deadlines are implementation of the stewardship code for mutual funds (MFs), shortening the initial public offering (IPO) timelines, and overhaul of regulations governing portfolio management services (PMS) and alternative investment funds (AIFs).

Sebi also provided relaxations in the know-your-client (KYC) formalities for foreign portfolio investors (FPI). The so-called stewardship code, an institutional investor’s guide to vote on resolutions floated by listed companies, will now come into effect from July 1