POLICY DEVELOPMENT (APRIL- DECEMBER 2014)
Securities Laws (Amendment) Act 2014: Vide the Act passed in August 2014, enhanced powers were conferred upon SEBI, including explicit power to disgorge ill-gotten gains, power to conduct search and seizure, explicit powers for settlement, attachment and recovery, increase in penalties, and constitution of special courts.
Primary Market
- In order to strengthen the corporate governance norms, SEBI amended Clause 49 of the equity listing agreement with provisions such as exclusion of nominee director from the definition of independent director and compulsory whistle blower mechanism.
- The Securities Contracts (Regulation) Rules 1957 were amended to require a minimum public shareholding of 25% of the total number of issued shares of public-sector units within three years.
Secondary Market
- The framework for stock exchanges to launch cash-settled interest-rate futures on ten-year government securities was prescribed.
- FPIs were allowed to trade in currency derivatives subject to terms and conditions.
- SEBI enabled a single consolidated view of all the investments of an investor in mutual funds and securities held in demat form with the depositories
- SEBI permitted single registration for stock brokers/clearing members. The policy of granting single registration for operating with both the depositories was approved.
- SEBI amended SEBI {KYC Registration Agency} (KRA) Regulations 2011 to provide for sharing of KYC (know your customer) information with other regulators.
Foreign Portfolio Investors
- The SEBI (Foreign Portfolio Investors) Regulations 2014 came into effect from 1 June 2014. Operational Guidelines for Designated Depository Participants (DDPs) were issued.
- From April 2014, investment conditions for FII/QFI investments in government debt securities were changed whereby their investments in T-Bills were allowed to taper off on maturity/sale.
- FPIs were permitted to invest on repatriation basis, in non-convertible/redeemable preference shares or debentures issued by an Indian company and listed on recognized Indian stock exchanges.
Mutual Funds, Corporate bonds, AIFs
- SEBI (Real Estate Investment Trusts) Regulations 2014 were notified in September 26, 2014.
- SEBI notified the Infrastructure Investment Trust Regulations in September 2014 which provide a framework for registration and regulation of InvITs in India.
- SEBI (Research Analysis) Regulations, 2014 were notified on September 01, 2014.
