SEBI in its Board Meeting on 29-03-2023 has intimated its decision to amend SEBI Stock Brokers Regulations, LODR Regulations, ICDR Regulation, AIF Regulations and operationalize Online Dispute Resolution Mechanism amongst other initiatives

The Securities and Exchange Board of India (“SEBI”) in its Board Meeting dated 29th March, 2023 took the following decisions:

1. To establish a regulatory framework for Environmental, Social and Governance (ESG) Rating Providers in Securities Market by introducing a new chapter in the SEBI (Credit Rating Agencies) Regulations, 1999.
2. To implement balanced Framework for ESG Disclosures, Ratings and Investing.
3. To upstream clients’ funds by Stock Brokers (SBs) / Clearing Members (CMs) to Clearing Corporations (CCs) to mitigate credit risk on intermediaries.
4. To amend Stock Brokers Regulations to institute a formal mechanism for prevention and detection of fraud or market abuse by stock brokers.
5. To introduce Regulatory Framework for Index Providers.
6. To bring clarity on the roles and responsibilities of Trustees and Board of Asset Management Companies of Mutual Funds with a focus on Unitholder protection.
7. To review Regulatory Framework for Sponsors of Mutual Funds to give greater flexibility to the industry.
8. To amend Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 for shareholder empowerment.
9. To introduce concept of General Information Document (GID) and Key Information Document (KID) for issuance of Bonds/ Commercial Paper and streamlining of disclosures.
10. To extend “Comply or Explain” period for Large Corporates (LCs) to meet their financing needs from debt market through issuance of debt securities to the extent of 25% of their incremental borrowings in a financial year.
11. To extend “Comply or Explain” period for the High Value Debt Listed Entities (HVDLEs) in respect of corporate governance norms and simplification of disclosure requirements pertaining to the payment of interest/ coupon and redemption amount.
12. To amend Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 to prescribe provisions for valuation of investments, de-materialisation of units, certification requirement for key employees of Investment Manager, transactions with associates, and option to sell unliquidated investments to anew scheme of Alternative Investment Fund.
13. To operationalize Online Dispute Resolution Mechanism for investors across registered intermediaries/regulated entities and strengthen the Investor Grievance Redressal Mechanism in the Securities Market through amendments.

Source : Securities and Exchange Board of India