Sebi clears raft of measures to boost market participation

Mumbai, Sep 12 (PTI) Following are the highlights of decisions taken at the Sebi's board meeting on Friday: *Easier IPO route for large firms: Minimum public offer size lowered for very large companies, with more time allowed to meet minimum public shareholding norms.

*Greater Anchor Investment: Anchor investor allocation raised from one-third to 40 per cent of the public issue.

*Trusted Investor Access: Single-window clearance to be offered to trusted foreign investors, such as central banks, sovereign wealth funds, and regulated global institutions.

*Related party transactions: Thresholds revised for shareholder approval requirements.

*FPIs in IFSCs: Retail schemes in International Financial Services Centres (IFSCs) can now register as foreign portfolio investors (FPIs).

*Flexible AIF Framework: A New category of Alternative Investment Funds (AIFs) created exclusively for accredited investors, with relaxed regulations.

*Relaxations for large value funds: Minimum investment threshold for accredited investors cut from Rs 70 crore to Rs 25 crore.

*REITs reclassified: Real Estate Investment Trusts (REITs) to be treated as equity, while InvITs remain hybrid instruments for the purpose of investments by mutual funds and specialised investment funds.

*Boost for MF distributors: Distributors to receive up to 1 per cent incentive for net inflows from beyond the top 30 cities, plus extra commission for investments by women investors.

*Governance and oversight: Regulatory framework for registrars to be reviewed; amendments approved for investment advisers, research analysts, and market infrastructure institutions.

These reforms are expected to deepen capital markets, enhance investor protection, and attract more domestic and international capital. PTI ANZ SP SP BAL BAL