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    Sebi Board meeting today: Here's what's on its agenda

    market | IST

    Sebi Board meeting today: Here's what's on its agenda

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    Market Regulator to discuss amendments ICDR regulations, overhaul in MMI norms also on the cards.

    The board of Securities Board Of India (Sebi) will meet today to discuss the recast of a bunch of vital regulations concerning Initial Public Offerings, or IPOs, and market infrastructure institutions (MIIs).
    The market regulator is likely to overhaul IPO rules, said people familiar with the matter. Top of the agenda is a proposal to reduce the announcement period for the price band to two working days from five working days before an issue opens, according to them.
    Experts say that the move will help the management of companies intending to bring out their public offer, have a better price discovery after factoring in volatility in the global markets which can have a direct impact on market sentiments and prices.
    The market regulator may also discuss the proposal of reducing the period of financial disclosure for a company intending to go public to three years from five years.
    SEBI also intends to appoint a monitoring agency for every (IPO) that hits the market. At present, IPOs only above Rs 100 crore are monitored.
    Sources said that there could be a significant overhaul of norms for Market Infrastructure Institutions (MII) which could find space in SEBI’s discussions.
    Market Infrastructure Institutions include exchanges, depositories and clearing corporations. The market regulator may consider harmonising the shareholding limit of foreign entities in MIIs. Currently foreign entities can own 15% in exchanges and 5% in clearing corporations and depositories.
    SEBI may also discuss the proposal of capping the tenure of CEOs and managing directors of exchanges. Sources indicate that the tenure could be capped to two terms of five years each or up to 65 years of age whichever is earlier.
    Simplification of regulations for setting up of MMIs could also be discussed at the board meeting.
    According to sources, market regulator also plans to revise regulations for share buyback. The revision would be with an intention to provide more clarity on various aspects, including on the requirement to make public announcements.
    The watchdog has carried out a review of the current buyback norms in order to simplify the language, remove inconsistencies and update the references to the new Companies Act that came into force in April 2014.
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