SEBI gives nod for beta version of T+0 settlement

The Securities and Exchange Board of India has cleared the launch of a beta version of optional T+0 settlement for 25 scrips with a limited set of brokers.

Late on Friday, the SEBI board also approved a proposal to exempt additional disclosure requirements for FPIs having more than 50 per cent of their India equity AUM in a single corporate group if the concentrated holdings of the FPIs are in a listed company with no identified promoter. The composite holdings of all such FPIs in the company with no identified promoter should be less than 3 per cent of its total equity share capital.

The timeline for disclosure of material changes by FPIs has been relaxed. FPI registrations that expire due to nonpayment of registration fee will now be permitted to be reactivated within 30 days from such expiry. If the FPI chooses not to reactivate its registration within 30 days, it shall be given 180 days for disposal of its securities.

Securities remaining unsold after 360 days will be deemed to have been compulsorily writtenoff and will be transferred to an escrow account.

IPO NORMS EASED

SEBI has eased norms for companies tapping the market for an IPO. Promoter group entities and nonindividual shareholders holding more than five per cent of the postoffer equity share capital will be permitted to contribute towards minimum promoters’ contribution without being identified as a promoter.

The increase or decrease in size of offer for sale requiring fresh filing will be based on only one of the criteria — either issue size in rupees or number of shares, as disclosed in the draft offer document.

Market capitalisation based compliance requirements for listed entities is to be determined on the basis of average market capitalisation of six months ending December 31, instead of single day’s (March 31) market capitalisation.