Sebi decides to introduce new asset class; liberalization of MF framework for passive funds – Times of India

NEW DELHI: Markets regulator Sebi’s board on Monday approved a proposal to introduce a new asset class for high-risk profile investors to bridge the gap between mutual funds and portfolio management services regarding flexibility in asset construction. In a statement released after the board meeting, Self said its board has approved a proposal to ease the regulatory framework for passively managed mutual fund schemes to reduce compliance requirements.
In all, the board approved 17 proposals, including amendments to insider trading rules and easing eligibility criteria and compliance requirements for investment advisers and research analysts.
This is the first board meeting since the US-based short seller Hindenburg Study and the Congress party leveled allegations against Sebi Chairman Madhbai Puri Buch.
Hindenburg accused Buch and her husband of having investments in offshore funds controlled by Vinod Adani, brother of Adani Group chairman Gautam Adaniwhich were allegedly used to funnel funds and inflate share prices.
It was further alleged that Sebi had amended the rules relating to Real Estate Investment Trusts (REITs) in a manner which favored Blackstonewhere Buch’s husband was a senior adviser. Buchs and Sebi have denied the allegations.
In addition, the Sebi Board has approved a proposal to introduce ‘summary proceedings’ provisions in the Intermediary Rules to deal more quickly and efficiently with certain violations of securities laws by intermediaries.
It also streamlined the disclosure requirements in the offer document and reduced rights processing time to make it the preferred way to raise funds.
Sebi also approved a proposal that would allow promoters to transfer their rights to select investors during rights issuespotentially attracting more investment to the market.