INSUBCONTINENT EXCLUSIVE:
Illustration: Binay Sinha4 min read Last Updated : Sep 24 2024 | 11:53 PM IST
The Securities and Exchange Board of India (Sebi) may clear
sources said.
The meeting will be closely watched, as it is the first since Congress and short-seller Hindenburg Research alleged conflict
of interest against Sebi chairperson Madhabi Puri Buch.
The Sebi chair was further caught in the storm amid discontent raised by the
category will cater to investors willing to take riskier bets
PMS.
However, clear differentiation and upfront disclosures may be mandated for the new category to avoid confusion for
investors.
Emailed queries to Sebi remained unanswered till the time of going to press.
Existing MF players will be allowed to launch
Sources said in anticipation of the new norms, several players have already started putting in place a team and zeroed in on the strategies
ranges from lower net worth and profitability criteria for sponsors and AMCs to reduced reporting requirements.
The board may also discuss
other key proposals such as stricter trading norms for the futures and options (F&O) segment.
In its latest analysis, the market regulator
pointed out that around 93 per cent of retail investors lost money to the tune of Rs 1.8 trillion in the derivatives segment in the past
three years.
Foreign portfolio investors (FPIs) and prop traders, meanwhile, booked gross trading profits of Rs 28,000 crore and Rs 33,000
crore, respectively, in FY24.
In a consultation paper floated in July, Sebi had proposed seven measures to curb speculative activity in
the F&O segment.
These measures included a hike in the minimum value of derivatives contracts to between Rs 15 lakh and Rs 20 lakh
initially and up to Rs 30 lakh after six months.
Currently, the minimum value of a derivatives contract is around Rs 5 lakh
The higher contract size is aimed at increasing the entry barrier for small investors.
Sebi has also proposed significant tightening on
the options side.
This includes the upfront collection of option premiums from buyers to reduce leverage.
The contracts based on fewer
undertaken a review of the norms on research analysts and registered investment advisors (RIAs) and proposed an overhaul of the
Sources said that the board may also take up these proposals in the upcoming meeting.
Among a slew of other measures under the ease of
doing business initiatives, Sebi may simplify norms on disclosure and listing obligations.
A 21-member committee chaired by SK Mohanty,
former whole-time member of Sebi, submitted its recommendations on the same, and the proposals may be taken up by the board next
week.
Sources said the granular disclosure norms on ultimate beneficial ownership applicable to foreign portfolio investors may also be
extended to p-notes (participatory notes or offshore derivative instruments) and those FPIs with segregated portfolios.Board to discuss
>
New asset class to bridge gap between MFs and PMS for high risk takers
> MF Lite norms for passive fund houses
> Measures to curb
retail activity in the index derivatives
> Overhaul of investment advisor and research analyst norms
> Review of listing regulations
