SEBI has scheduled discussion of some significant regulatory changes at its Board meeting that it will be holding on December 18, keeping the agenda to enhance investor protection and business transparency.
Key Focus Areas 📌
- SME Listing Reforms 🏢
SEBI plans to introduce measures to strengthen the SME listing space and safeguard retail investor interests:- Increased Minimum Application Size: From ₹1 lakh to ₹2 lakh.
- New Allotment Rule for NIIs: A draw-of-lots method to replace proportionate allotment, reducing misuse of leverage.
- More Allottees: Minimum number of allottees to rise from 50 to 200.
- Related-Party Transaction (RPT) norms will apply to SME-listed companies.
- Quarterly disclosures on financials, shareholding patterns, and Board meetings will be made mandatory.
- Insider Trading Regulations 🔍
SEBI may redefine Unpublished Price-Sensitive Information (UPSI) to align it with Material Events under LODR rules. The proposed changes could include:- Updates on ratings, fundraising plans, major management agreements, or fraud/default reports involving companies or key personnel.
- Resignation of statutory auditors and key management personnel (KMPs).
- Specified Digital Platform (SDP) 📲
A digital platform framework may be finalized to facilitate registered entities in collaborating with third-party vendors with simplified compliance. This is particularly significant for brokerages, advisors, and finfluencers. - Performance Validation Agency (PVA) ✅
SEBI may announce the long-awaited Performance Validation Agency to verify claims made by SEBI-registered intermediaries, such as Research Analysts, Investment Advisors, and algo service providers.This step will enable intermediaries to showcase validated performance to attract investors with greater trust.
