Sebi to issue consultation paper for secondary market ASBA by March

Market regulator also working on new discussion paper for ESG rating providers

The Securities and Exchange Board of India will be floating a consultation paper on the implementation of an application supported by blocked amount (ASBA)-like mechanism for the secondary market by March 2023-end, said Sebi chairperson Madhabi Puri Buch.

The market regulator plans to introduce the new mechanism through a glide path, beginning with delivery-based trades. Buch said Sebi has been actively engaging with market participants and investors for the co-creation of the whole process.

On the matter of reducing timelines for approvals for Initial Public Offerings (IPOs), Buch said there are a few repeat offenders among merchant bankers, and to smoothen the process, repeated lacunae need to be avoided.

Sebi will also issue a new consultation paper on ESG rating providers and standardisation. The regulator had earlier floated such a paper this January.

On the sidelines of the board meeting, the chairperson said that Sebi has come up with 115 regulations and circulars this year, 44 per cent of which have been on liberalising and opening up the markets.

On the issue of increasing the duration of market trading hours, the Sebi chief said the regulator has already given in-principal approval and it is now up to the exchanges to take a call.