To deepen markets and help raise funds for business and infrastructure projects, Sebi today announced a slew of measures including for listing of municipal bonds and for setting up of a global financial hub within India on the lines of Singapore and Dubai.
The markets regulator also made it easier for banks to acquire control in distressed listed companies, by converting their debt into equity, while it tightened the noose on entities indulging in market manipulation and insider trading by selective leak of information at the cost of investors.
Besides, Sebi also announced a roadmap for the new fiscal, beginning next month, with regard to new norms to help young entrepreneurs raise funds through listing of start-ups and crowd-sourcing, while it would streamline and strengthen its enforcement process for better efficiency.
Proposing a new avatar by adopting latest technologies, Sebi said it will tap social media in a big way to reach out to the investors and make it easier for them through measures like e-IPO and Aadhar-based e-KYC initiatives.
Sebi also pitched for allowing pension money into capital markets and creating an enabling environment for REITs (Real Estate Investment Trusts) to flourish, after Finance Minister Arun Jaitley addressed the board members and top officials of the regulatory authority in his post-Budget meeting with them.
Jaitley also reviewed the state of economy and the capital markets and explained his Budget proposals. He discussed the capacity building and other infrastructure needs for merger of commodities regulator FMC with Sebi to create a unified markets regulator.
To safeguard interest of investors, Sebi Chairman U K Sinha said listed companies would need to disclose their board decisions within 30 minutes, while all other 'material information' would need to be made public within 24 hours, failing which they would face strict penal action.
Tightening its corporate disclosure norms, Sebi said such disclosures would need to be made "as soon as reasonably practicable", but not later than the given time limit.
