Sebi mulls easing InvIT, REIT norms to boost ease of doing business

The market regulator is mulling relaxations to the Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) framework in a bid to promote ease of doing business. The Securities and Exchange Board of India (Sebi) issued a discussion paper on Friday proposing a slew of reliefs. These include changes in the definition of ‘public’ for minimum public unitholding requirement, alignment of minimum allotment with trading lot for privately placed InvITs, and timelines for submitting various reports. Sebi has also sought comments on adjustment of negative cash flows at holding companies with distributions received from special purpose vehicles (SPVs) in calculation of net distributable cash flow (NDCF). NDCF refers to the amount a REIT can distribute to its unitholders after deducting all operational expenses and obligations.

 

 

Sebi proposes reducing disclosures in QIP document

 

The Securities and Exchange Board of India (Sebi) proposed amendments to the "placement document" for qualified institutions placement (QIP) on Friday, aiming to streamline disclosure requirements by focusing solely on issue-relevant information. QIP, a key fundraising avenue for listed companies, accounted for 35 per cent of equity-based fund mobilisation in 2023–24. Sebi's proposal considers that listed companies already comply with continuous disclosure obligations, and the existing format's extensive requirements may be time-consuming and lead to redundant information.

 

Sebi relaxes norms for stock brokers to expand in GIFT City

 

The Securities and Exchange Board of India (Sebi) on Friday waived the requirement of seeking specific approvals from the regulator for stock brokers to undertake business in GIFT-IFSC. In a circular, the market regulator stated that brokers could undertake securities market-related activities under a separate business unit (SBU), which will have to be ring-fenced from the activities in the domestic market and the accounts will be kept at arm’s length. Net worth of the SBU will also be considered separately. Further, decisions on eligibility, risk management, inspection, claims and investor grievance for such SBUs will fall under the GIFT City regulator.

 

Carlyle exits PNB Housing

 

Private equity (PE) major Carlyle Group’s affiliate firm Quality Investment Holdings on Friday sold its entire 10.44 per cent stake in mortgage lender PNB Housing Finance. The PE major sold 27.12 million shares at ₹1,000.2 apiece to raise ₹2,713 crore. Several mutual funds (MFs) and foreign investors bought shares in small quantities. Among the top buyers were Kotak Mahindra MF (₹342 crore), Nippon India MF (₹301 crore), Morgan Stanley (₹130 crore) and Aditya Birla Sun Life MF (₹125 crore). Shares of PNB Housing rose 4.3 per cent after the “clean out” trade to end at ₹1,054, valuing the company at ₹27,383 crore. 

NSE launches Nifty Waves index at Mumbai summit 

The National Stock Exchange (NSE) on Friday introduced the Nifty NSE Waves Index at the World Audio Visual & Entertainment Summit (WAVES) in Mumbai. This index comprises 43 constituents from the media, entertainment, and gaming sectors, including Nazara Technologies, PVR Inox, Zee Entertainment, Saregama India, and Network18 Media & Investments, among others. Each stock is capped at a 5 per cent weighting. The index, with a base date of April 1, 2005, will be rebalanced quarterly, with inclusions and exclusions reviewed semi-annually.