Sebi tightens rules for mergers & acquisitions among unlisted firms

Brings more checks and balances to curb manipulation, also announces steps for mutual funds sector

Capital market regulator Securities and Exchange Board of India (Sebi) has introduced more checks and balances for mergers and acquisitions (M&A) involving unlisted companies to curb manipulation. The move comes in the wake of instances where unlisted companies are merged with listed companies with ulterior motives.

Sebi also announced a number of measures pertaining to the mutual fund sector, allowing it to invest in newer instruments, such as real estate investment trusts (ReITs) and permitting fund houses to use celebrities for industry-level advertisements. 

Besides these, Sebi also cut turnover fees by 25 per cent paid by brokers. “This will result