Monday, September 26, 2016

SEBI proposes foreign portfolio investors to directly trade in corporate bonds without a broker

SEBI board has met in Mumbai and took the following important decision:

1) FPIs permitted to trade directly in Corporate Bonds: With an aim to deepen corporate bonds market by attracting more overseas funds, SEBI has decided to allow wellregulated Foreign Portfolio Investors (FPIs) to trade directly in these securities without any broker.

2) Amendment in InvIT and REIT regulations: In order to facilitate growth in Infrastructure and Real Estate, SEBI has allowed Infrastructure Investment Trusts (InvIT) and Real Estate investment Trust (REIT) to invest in a two-level special purpose vehicle structure through Holding Company (Holdco) subject to sufficient shareholding in the Holdco and the underlying SPV and other safeguards.

3) Increase in limit of foreign Investment: SEBI board has decided to increase the foreign stake in Indian Stock exchange by increasing the limit of foreign Investment from 5% to 15%.

4) Employee Reservation in Issues: Now issuer can make reservation for employees in excess of the extant limits of Rs. 2 lakhs per employee under employee reservation quota. Value of total allotment to an employee under employee reservation portion, including the additional allotment shall not exceed Rs. 5 Lakhs.

5) Framework for registration of fund managers: To provide regulatory framework for registration of eligible fund managers, SEBI has approved various amendments to Portfolio manager’s regulations Such as Obligation and responsibly, disclosures, procedures for registration etc.

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