SEBI Board Meeting: An important meeting of the SEBI board will be held tomorrow, rules ranging from mutual funds to IPOs may change.

News Topical, Digital Desk : SEBI Board Meeting: The board of capital markets regulator SEBI is scheduled to meet on Wednesday, where several key market-related proposals are expected to be considered and approved. According to Moneycontrol, the meeting's agenda includes a comprehensive review of mutual fund rules, stock broker rules, and the ICDR framework. According to sources, these changes are aimed at improving the ease of doing business and increasing retail investor participation.

The board may consider a proposal to cap brokerage fees for asset management companies under mutual fund regulations. In a consultation paper, SEBI has suggested reducing brokerage fees in the cash segment from the current 12 basis points to 2 basis points and in the derivatives segment from 5 basis points to 1 basis point. Institutional brokerages and AMCs have expressed their support for this, demanding relief. The board may also reconsider proposals to reduce the total expense ratio, which included a reduction of 15 basis points for open-ended schemes and 25 basis points for closed-ended schemes.

As part of its review of stock broker regulations, SEBI says the proposals aim to simplify compliance, reduce costs, strengthen investor protection, and align the regulations with the Companies Act 2013. For the first time, algorithmic trading has been formally defined, and the definition of proprietary trading has also been clarified.

Rules for Stock Brokers Furthermore, suggestions include granting stockbrokers access to the NDS OM platform for government bond trading and designating an execution-only platform for digital platforms related to direct mutual fund plans. 

New IPO Rules Changes to IPO-related regulations are also possible. The board may consider addressing issues related to IPO lock-ins and simplifying disclosures. SEBI may amend ICDR regulations to allow pledged pre-issue shares to be marked as locked-in through technology. Additionally, there is a proposal to replace the abbreviated prospectus with a simplified offer document summary of 15 to 20 pages. Changes to the Conflict of Interest Code for SEBI board members and officials may also be discussed at the meeting. Furthermore, measures to simplify the demat and transfer process of old physical shares deposited before April 1, 2019, will also be considered. 

These changes may also be considered: The SEBI board may also decide on a proposal to allow incentives in public debt issues. This includes offering higher coupons or discounts to senior citizens, women, armed forces personnel, and retail investors. Furthermore, there is a possibility of expanding the scope of credit rating agencies and allowing them to rate financial instruments covered by other regulators. 

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