IND SEBI Simplifying SEBI Regulations

On Oct. 4, IND SEBI proposed simplification of numerous regulations.

  • IND SEBI issued press release to inform of IND SEBI's proposal re the simplification, ease of compliance as well as reduction in cost of compliance, re financial sector regs.
  • Said suggestions towards simplifying, easing, reducing cost of compliance with respect to the various regs listed in table, are invited from the public and regulated entities.
  • Follows IND BA Feb. 2023 issued chairman's comment 2023-24 budget, #161978,
  • Context
  • Said one of the budget announcements in the Union budget for FY 2023-24, was to simplify, ease as well as reduce cost of compliance, and that financial sector regulators will be requested to carry out a comprehensive review of existing regulations.
  • For this, they will consider suggestions from public as well as regulated entities.
  • Proposal Overview
  • Table sets out regulated entities and applicable name of reg under review, as follows.
  • Portfolio managers, SEBI (portfolio managers) regulations 2020; mutual funds, SEBI (mutual funds) regulations 1996; Stock brokers, SEBI (stock brokers) regulations 1992; depository participants, SEBI (depositories and participants) regulations 2018.
  • In addition, registrar as well as share transfer agents, the SEBI (registrars to an issue and share transfer agents) regulations 1993; as well as KYC registration agencies, regs that are titled SEBI (KYC (know your client) registration agency) regulations 2011.
  • Investment advisers, SEBI (investment advisers) regulations 2013; research analysts, SEBI (research analysts) regulations 2014; as well as alternative investment funds - regulations that are titled SEBI (alternative investment funds) regulations 2012.
  • Foreign portfolio investors, the SEBI (foreign portfolio investors) regulations 2019.
  • Custodians, SEBI (custodian) regulations 1996; debt issuers, SEBI (listing obligations and disclosure requirements) regulations 2015, SEBI (issue and listing of non-convertible securities) regulations 2021; as well as regulations re debenture trustees.
  • SEBI (debenture trustees) regulations 1993; REITs, SEBI (real estate investment trusts) regulations 2014; InvITs, SEBI (infrastructure investment trusts) regulations 2014; equity listed companies, SEBI (delisting of equity shares) regulations 2021.
  • In addition, SEBI (share based employee benefits and sweat equity) regulations 2021.
  • SEBI (buy-back of securities) regulations 2018; SEBI (issue of capital and disclosure requirements) regulations 2018; SEBI (listing obligations and disclosure requirements) regulations 2015; merchant bankers, SEBI (merchant bankers) regulations 1992.
  • Bankers to an issue, SEBI (bankers to an issue) regulations 1994; equity listed companies, SEBI (substantial acquisition of shares and takeovers) regulations 2011.
  • In addition, regulations re stock exchanges, clearing corporations, Securities contracts (regulation) (stock exchanges and clearing corporations) regulations 2018; as well as regulations re depositories, SEBI (depositories and participants) regulations 2018.
  • Regulations re credit rating agencies, SEBI (credit rating agencies) regulations 1999.
  • Effectiveness
  • The comment period for this consultation closes on Nov. 6, 2023.
  • In Dec. 2023, IND SEBI proposed changes for ease of doing business, see #194312.
  • In Jan. 2024, IND SEBI issued circular i.e. to streamline reg reporting, see #199300.
  • In Feb. 2024, IND SEBI proposed initiatives for portfolio managers, see #201404.
  • Apr. 2024 Suite of Amendments Gazetted
  • On Apr. 26, 2024, IND SEBI issued Securities contracts (regulation) (stock exchanges and clearing corporations) (amendment) regulations 2024, in the official gazette.
  • It also published IND SEBI (research analysts) (amendment) regulations 2024 as well as IND SEBI (investment advisers) (amendment) regulations 2024 in official gazette.
  • All amendment regs shall come into force Jul. 25, 2024, being 90 days from gazettal.
  • Except Securities contracts (regulation) (stock exchanges and clearing corporations) (amendment) regulations 2024 shall come into force Apr. 26, 2024 (date of gazettal).
  • Documents dated Apr. 26, 2024, received from IND SEBI Apr. 29, summarized Apr. 30.
  • In May 2024, IND SEBI issued rules to supervise research analysts, see #210734.
  • In May 2024, IND SEBI proposed measures for non-convertible securities, #211506.
  • In May 2024, IND SEBI proposed streamlining measures re REITs, InvITs, #211493.
  • In May 2024, IND SEBI revised depositories, participants regulations, see #211946.
  • In May 2024, IND SEBI amended rules re stock exchanges and clearing, see #211957.
  • In Jul. 2024, IND SEBI revised rules on listing obligation and disclosure, see #219489.

Regulators IND SEBI
Entity Types B/D; Corp; IA
Reference OG REGD. No. D. L.-33004/99, CG-MH-E-26042024-253871, CG-MH-E-26042024-253872, CG-MH-E-26042024-253875, No. 280, No. 281, No. 282, Reg SEBI/LAD-NRO/GN/2024/169, SEBI/LAD-NRO/GN/2024/170, SEBI/LAD-NRO/GN/2024/171, PR 4/26/2024; CP, PR No. 24/2023, 10/4/2023
Functions Compliance; Financial; Legal; Operations; Product Administration; Reporting; Treasury
Countries India
Products Corporate; Fund Mgt; Securities
Regions AP
Rule Type Final
Rule Date 10/4/2023
Effective Date 7/25/2024
Rule Id 186918
Linked to Rule :219489
Reg. Last Update 4/26/2024
Report Section International

Last substantive update on 05/01/2024