SEBI Chairperson Madhabi Puri Announces Norms For Finfluencers | Voluntary Delisting | F&O Trading

you cannot say I'm doing education but I'm claiming that my students make 5 a year somebody who is doing pure education not giving specific Securities advice and not making any claims of performance such people are outside the purview of our regulations so our intermediaries and other people can freely associate with educational institutions and people who are doing that [Music] first one is uh what the media likes to call half influencer related regulations um as you know we have jurisdiction over entities that we regulate we don't have jurisdiction over entities that do not come in register with us and are not part of our ecosystem so the way that this works is that the entities which are regulated by us they are now being mandated that they cannot associate with people who do one of two things either of two things one is if they are not registered investment advisers or research analysts and yet they are giving investment advice or research analysis then that's a inappropriate activity they're supposed to register with us since they unregistered and they're still doing it so they're breaking the law so obviously our regulated entities cannot have any association with them because they breaking the law the second is irrespective of whether they are registered or unregistered if they are making claims on performance or in terms of you know portfolio performance their service performance Etc unless it is specifically provided for them to be able to give that information of performance if they are making claims without that approval then again they are breaking the law law and therefore again our regulated entities cannot associate with them so the basic principle here is what you cannot do directly right you cannot break the law directly you cannot do indirectly by associating with people who break the Securities Law right so that's the thinking behind this now naturally there is uh you know they needed to be uh certain provisors and certain car outs that we needed because um we as part of our public consultation we received a lot of feedback and as you know we take the feedback very very seriously so a couple of things which we have done is that if there are people who are exclusively engaged in investor education but what that means is directly or indirectly they cannot be playing the role of investment advisor or research analyst and of course they cannot be making any claims of return so you you cannot say I'm doing education but I'm claiming that my students make 5 a year so somebody who is doing pure education not giving specific Securities advice and not making any claims of performance such people are outside the purview of our regulations so our intermediaries and other people can freely associate with educational institutions and people who are doing that the second is that there are some platforms uh and we have had very constructive uh discussion over the last many months with some of these platforms where they have demonstrated to us that they have the capability both on a proactive basis and on a Curative basis to address the issue of people who are breaking the Securities Law so if there are unregistered people who are putting content on their platform or if there are people who are making claims about performance and these are all illegal activities then they have the ability and they've demonstrated that ability to be able to proactively deal with such people and also curatively deal with such people then such platforms sebi can specify or notify and then what will happen is that our intermediaries and other regulated entities can freely associate with people through such platforms uh without any uh fear of uh breaking our laws because we are notifying that yes the platform has mechanisms and therefore even if let us assume on a on a random basis some uh you know uh some random case slips through which is otherwise illegal the intermediary will not be held accountable because we have notified that platform as people who are taking adequate measures to prevent wrongdoing right so this is the first proposal and of course the responsib ability of ensuring that they don't deal with uh people who are doing illegal work will be on the regulated entities because those are the ones that come under us um the second area that um the board approved today was in respect of the um voluntary D listing uh we had had discussion on this some time ago and uh we had mentioned to you that the board had asked for some data which we presented to them and therefore now uh this matter has also been approved today and there are numerous elements of ease of doing business here the first is that the fixed price process as an alternative to the reverse book building process will be permitted here the requirement is that the minimum price which has been determined as the floor price under the D listing regulations over and above that that a minimum of 15% premium will need to be offered if the person if the promoter wishes to go for a fixed price process the second is that we had seen that there were um difficulties for investment holding companies to be able to deist because of the holding company discount and other related matters so we have now facilitated that through a scheme of arrangement they can do selective Capital reduction and what this will mean really is that they will be able to pass on the benefit of uh the encashment of their Holdings to the extent that they are holding liquid shares listed shares uh to their investors and the requirement is that at least 75% of such companies their fair value should be directly in uh listed companies right so not every company can declare that I'm an investment company provided that 70% of their fair value lies in LED companies then they can Avail of this um so this is the second um flexibility a new route for D listing which has been provided uh in all of this if the investment company is regulated by another regulator naturally they would need to comply with the requirements of that regulator as well the third flexibility that is being given is we are making the counter offer mechanism in a delisting process uh much more flexible earlier the threshold for making a counter offer was 90% subscription we have reduced that to 75% provided that at least 50% of the public shareholding has been tendered okay so this is the third flexibility of course needless to say the delisting process will succeed only if finally the acquire acquirer reaches 90% so the final vote still lies in the hands of the investor whether they want this new acquirer to uh reach that threshold or not the fourth area was the introduction of adjusted Book value as an as an additional parameter for determining the floor price so earlier the uh Book value was only a parameter that we reckoned for illiquid uh Scripts we are now introducing that for liquid scripts as well when I say liquid I mean frequently traded um however there has been a carve out which has been done for public sector uh undertakings the reason for that being that um very often the public SE sector undertakings have certain assets particularly landb building and other things uh which are not freely transferable and therefore while their value in their books may be x uh these uh properties are not freely transferable and therefore it would be inappropriate to put that as a minimum value for the uh valuation the third thing is that uh this is more operational but uh the reference date for computing the flaw price uh has been changed from the existing requirement of the date of board approval to the date of initial public announcement the whole logic being that this is the date when it gets crystallized and we we want the undisturbed price to form the basis the next proposal is um um uh you know uh an ease of doing business and you would have seen that we have a number of proposals which went to the board today on ease of doing business and the reason for that is that um we had um as you many of you might recollect we had created 16 different working groups for different stakeholders of the Capital Market ecosystem to with the Mandate and the terms of reference that tell us what is it that you would like from the perspective of ease of doing business so many of those working groups have come back to us now uh many of them with interim reports some of them with final reports so you should expect to see a whole stream of uh proposals which are really reflecting uh you know sebi coming forward to do that ease of doing business for multiple stakeholders so the first big set of such proposals went to our board today and uh so you will see that reflected uh in the next few proposals that I'm going to talk of um the first is um we had a dis uh additional disclosure framework for FBI uh this was in August 23 uh circular that we brought this was in the context of concentrated Holdings in a single group or very large fpis and we required them to make additional disclosures

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Length: 11min 20sec (680 seconds)

Published: Fri Jun 28 2024