The Securities and Exchange Board of India (SEBI) on June 27 approved the proposal to ban the association of regulated entities like brokers with unregistered entities such as “finfluencers”. The decision was taken during the board meeting of the regulator.
SEBI also approved a new criteria for a single stock F&O entry and exit. The latest norms are aimed at enhancing liquidity and ensuring robust market participation.
The regulator has raised threshold for stocks entering the F&O or derivatives segment by revising key benchmarks. The Median Quarter Sigma Order Size (MQSOS) has been raised from the current Rs 25 lakh to Rs 75 lakh on a rolling basis. In addition, the market wide position limit (MWPL) has been raised from the current Rs 500 crore to Rs 1,500 crore.
SEBI says that the Average Daily Value (ADV) over the last six months must not fall below Rs 30 crore, compared to the previous limit of Rs 10 crore. It expects addition of five to six new stocks in the F&O category, while around 24 stocks are expected to be removed from the list.
SEBI also approved the fixed price processing as an alternative to the reverse book-building process of voluntary delisting. Companies opting for the fixed price process must set the minimum price at the floor price under the delisting, plus an additional 15 per cent premium. This offers greater flexibility to the companies in their de-listing strategy. The issue was discussed in the November 25, 2023 board meeting but was not approved as more data was required. SEBI aims to narrow the discount at which Investment and Holding Companies trade so that investors can receive the right intrinsic value at the time of delisting.
Addressing the media, SEBI Chief Madhabi Puri Buch said unregulated entities giving market-related advice is unlawful.
In addition, the regulator approved the exemption of some UNI funds from the beneficial ownership rule.
The investment holding companies (IHCs) will be allowed to distribute shares to investors on pro-rata basis. They will be permitted to give cash against unlisted companies and land/real estate.
SEBI also introduced measures for ease of doing business for REITs and InvITs.
Further, the market watchdog approved the proposal to remove financial disincentives for MD and CTO of exchanges, and other market infrastructure institutions (MIIs) due to a technical glitch.
