Latest news with #TuhinKantaPandey
Economic Times
6 hours ago
- Business
- Economic Times
No obstacle will remain in NSE IPO: Sebi Chairman Tuhin Kanta Pandey
Sebi chairman Tuhin Kanta Pandey on Friday affirmed that no obstacle will remain for the country's largest stock bourse NSE to go ahead with its initial public offer (IPO). ADVERTISEMENT Asked whether the much-delayed IPO will happen before Diwali, the chief of the capital markets regulator declined to share any timeline. "There is no obstacle that will remain in case of NSE IPO," he said, speaking at the FE CFO Awards here. Pandey reiterated that the Sebi is fine with the ownership of clearing corporation by the stock bourses, and added that the ownership is "not an obstacle" in the run up to the IPO. Pandey explained that every country has its own models when it comes to ownership of clearing corporations, pointing out that brokers own it in the US, while they sit as separate entities in India. The career bureaucrat-turned-regulator, who assumed office in March, said NSE is in the process of settling some legal processes, which will entail paying some amounts and withdrawal of some cases at present. ADVERTISEMENT He, however, did not elaborate on the exact nature of the settlements and the payments which need to be done. Sebi is not pushing the 'T+0' settlement period right now, given the complexities involved in its especially with regard to the foreign investors' play, he said, suggesting that it will continue to be a optional facility. ADVERTISEMENT We must aim to take the total number of domestic investors to 400 million in the next five years from the present 130 million unique investors in the capital market. Citing his discussions with foreign investors both in India and abroad, Pandey said tax issues are not a deterrent for them but it is other factors which influence the bets. ADVERTISEMENT "Overall, our markets are stable, our domestic investors, domestic flows are good, capable of handling the volatility, our volatility, which was also increased post tariff like rest of the world, but it was not as high as in some other countries, those exchanges and certainly it is well within our manageable limit," he said. Earlier, Pandey also spoke about the need to regulate less in order to spur economic growth. ADVERTISEMENT He said chief financial officers play a critical role in ensuring the financial integrity and accountability of listed companies and added that timely, accurate and reliable financial information is owed to them. "The market looks to you for credibility. Investors depend on your disclosures. Regulatory bodies rely on your adherence," he said. The Sebi chief said nobody can guarantee that egregious behaviour will not be there, and spoke about the recent experience with the Gensol case in this context, asserting that the findings in the matter should not make one veer away from the agenda of ease of regulations. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
6 hours ago
- Business
- Time of India
No obstacle will remain in NSE IPO: Sebi Chairman Tuhin Kanta Pandey
Synopsis Sebi Chairman Tuhin Kanta Pandey announced that the NSE IPO faces no remaining obstacles, though he refrained from providing a specific timeline. He clarified that the ownership structure of clearing corporations is not hindering the IPO. Pandey also mentioned NSE is resolving legal matters, involving payments and case withdrawals, while Sebi is proceeding cautiously with the 'T+0' settlement period.
The Print
a day ago
- Business
- The Print
Sebi announces measures for PSU delisting, relaxes ESOP norms for startup founders
With foreign portfolio investors' interest in government securities growing amid India's inclusion in global bond indices, the Securities and Exchange Board of India (Sebi) decided to simplify regulatory compliance for govt bonds-focused FPIs. The board, which met at the capital markets regulator's headquarters here, also decided to allow startup founders to retain employee stock options (ESOPs) granted at least one year prior to the filing of preliminary IPO papers. Mumbai, Jun 18 (PTI) The Sebi board on Wednesday approved a slew of proposals on the ease of doing business for market participants and measures for voluntary delisting for select state-owned companies. The Sebi board also decided to come out with a settlement scheme for certain stock brokers who traded on the National Spot Exchange (NSEL) platform against whom enforcement actions have been started, which includes clarity on both monetary and non-monetary terms of settlement. This was the second board meeting chaired by Tuhin Kanta Pandey since assuming charge as the head of the capital markets regulator earlier this year. In comments that come amid the largest equity bourse NSE's initial public offering (IPO) plans, Pandey also said that the regulator does not have any problem with the current structure of a clearing corporation being a subsidiary of an exchange. However, he said that the charges levied to an investor for executing trades cannot be a 'black box' and made it clear that the Sebi favours unbundling on this front. The issue of majority ownership in its clearing arm being a hindrance for the NSE IPO is a 'speculation' and not a proposal or an ask from the regulator, Pandey said. At its board meeting, the Sebi also decided to allow category I and II alternate investment funds to offer co-investment opportunities within the AIF structures and a proposal to make angel investors into 'Accredited Investors', which will allow them greater flexibility, as the measures to protect smaller investors will not be applicable for them. A majority of the 19 proposals cleared in the board meeting are related to ease of doing business for the market ecosystem, including in the social stock exchange front, for merchant bankers, and the real estate investment trusts and infrastructure investment trusts. Pandey said entities have raised Rs 20 crore from 20 issuances till now, and the measures announced on Wednesday, including broadening the number of entities, which can do a not-for-profit organisation will help them raise more funds. On the PSU delisting front, the measures adopted by the Sebi board include relaxations from the requirement of the two-third threshold for approving delisting by public shareholders and in the mode of computation of floor price. Under current rules, delisting is successful if promoter shareholding reaches 90 per cent. Moreover, the floor price for delisting is calculated using several pricing metrics such as the 60-day average price and the highest price in the last 26 weeks. Pandey said excluding banking, financial services and insurance sectors, there are five entities, where the state owns 90 per cent or more stake, which stand to benefit from the decisions of the board, and explained that challenges have been faced since the past because of financial performance of entities. Sebi's announcement on the ESOP front is being considered as a major relief to startup founders looking to go public, as they will be able to retain employee stock options (ESOPs) granted at least one year prior to the filing of preliminary IPO papers. Under the existing regulations, promoters are ineligible to hold or be granted share-based benefits, including ESOPs. If they hold such share-based benefits at the time of filing of draft red herring prospectus (DRHP), they have been required to liquidate such benefits prior to the IPO. This provision has been found to be impacting founders classified as promoters at the time of filing of DRHP, Sebi noted. Pandey said the board approved a proposal to 'facilitate founders who received such benefits at least one year prior to the filing of DRHP with the board, to continue holding, and/or exercising such benefits even after being specified as the promoter/s and the company becoming a listed entity'. These proposals are expected to assist public companies who intend to list after undertaking reverse flipping — shifting the country of incorporation from a foreign jurisdiction to India. On the FPI's G-Sec ownership front, Pandey said Sebi has decided to simplify rules and ease regulatory compliance for Foreign Portfolio Investors (FPIs) that invest exclusively in Indian government securities (G-Secs) with the aim to attract more long-term bond investors to India. Currently, foreign investors invest in Indian debt through three routes — General, Voluntary Retention Route (VRR) and the Fully Accessible Route (FAR). VRR and FAR allow investments without many restrictions, such as security or concentration limits. 'With an objective to enhance ease of doing business through a risk-based approach and optimum regulation, the board approved the proposal to relax certain regulatory requirements for all existing and prospective FPIs that exclusively invest in G-Secs. These measures are expected to further help in facilitating investments by FPIs in G-Secs,' Sebi said in a statement after the conclusion of the board meeting. Under the approved relaxations for FPIs investing in G-Secs, the periodicity of mandatory KYC review for such FPIs will be harmonised with the RBI's requirements. Accordingly, such foreign investors will have less frequent mandatory KYC reviews. It also approved a proposal for the use of liquid mutual funds and overnight funds for compliance with deposit requirement mandates for investment advisors and research analysts, in addition to bank fixed deposits for the purpose of compliance. PTI AA BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Mint
2 days ago
- Business
- Mint
Mint Explainer: What did Sebi decide at its 210th board meeting?
In his second board meeting as chairperson of the Securities and Exchange Board of India (Sebi), Tuhin Kanta Pandey approved a sweeping set of regulatory changes aimed at reducing friction across capital markets. With reforms for startups and PSU delisting norms, tweaks to the structures of alternative investment funds (AIFs) and angel funds, and easier procedures for intermediaries, the regulator moved decisively to bolster its 'ease of doing business' agenda. Mint breaks down the key decisions from Sebi's 210th board meeting, and what they mean for investors, startups and the broader financial ecosystem. What did Sebi decide for promoters of startups? Sebi permitted founders designated as promoters to retain employee stock options (Esops), provided these were granted at least a year before the company filed its draft red herring prospectus (DRHP). Earlier, such holdings had to be liquidated before the listing, creating regulatory headaches for startup founders, already under pressure to become unicorns and reward their early investors with rich exits. Many are now in wait-and-watch mode. 'The move by Sebi is intended to ease the pain of many promoters who started the business, going from employee to entrepreneur," said Archana Balasubramanian, partner at Agama Law Associates. Also read | Mint Explainer: How Sebi uncovered Sanjiv Bhasin's alleged stock manipulation scheme Shubha Yadav, partner at RS Law Chambers, termed the change 'clear and targeted", adding that the one-year cooling-off period 'covers only those share-based benefits including Esops granted one year prior to the filing of the DRHP, which should not raise any legal or compliance challenge during IPO preparation". Flagging potential grey areas, Ketan Mukhija, senior partner at Burgeon Law said, 'Determining the start of the cooling-off period and ensuring there are no indirect grants will require careful documentation." How is Sebi easing PSU delistings? Public sector undertakings (PSU) in which the government and other PSUs hold an at least 90% stake can now delist without the two-thirds public shareholder approval that was previously mandated. The new fixed-price route requires a 15% premium above the calculated floor price, based on historical data and independent valuation. Prashant Mishra, founder & CEO of Agnam Advisors, said government-owned companies now have a clearer path to exit the stock market through a straightforward pricing system, making it easier for big institutional investors to understand what is happening. Legal experts said one critical legal question remains: how will minority shareholders' rights be safeguarded? Abhishek Dadoo, partner at Khaitan & Co, said this framework enables the delisting of PSUs that would otherwise struggle to exit, but comes at the cost of diluting minority protections. 'The delisting price is linked to an independent valuation, not the historic market price—which could be higher. The removal of the public vote effectively un-democratises the process." he added. Can AIF investors now co-invest more easily? Category I and II AIFs can now offer co-investment schemes (CIVs) within their structure, giving accredited investors a chance to invest alongside the AIF in unlisted companies. 'The approval of the co-investment vehicle is a breakthrough that will significantly expand private capital participation in India," said Gopal Srinivasan, chairman and managing director, TVS Capital Funds. 'Typically, in global practice, 15-20% of a fund's corpus comes through such co-investments, and this is now within reach", he said. Also read: Sebi's new fee platform aims to protect investors. But not many have taken to it However, Nandini Pathak, partner at Bombay Law Chambers, emphasised caution, saying the eligibility of co-investors would hinge on their accreditation status. 'Restrictions may continue around exit timing and terms. These advisory rights are being considered for listed co-investments," she said. Pathak suggested fund managers adopt appropriate internal controls and best execution practices, and provide adequate disclosures to the main AIF investors. How is Sebi changing investment norms for angel funds? Only accredited investors (AIs) can now invest in angel funds. AIs undergo independent verification to ensure compliance and protect investors. Earlier investments by non-AIs are grandfathered in, with a one-year transition period. Limits for investing in startups have been widened from ₹10 lakh to ₹25 crore), the 25% concentration cap has been removed, and more than 200 accredited investors can invest together. Managers must retain 'skin in the game" of at least 0.5% or ₹50,000 per deal. Experts said AIFs have long been attracting high-net-worth individuals (HNIs) and relatively sophisticated investors, which gives Sebi more leeway to relax norms and make it easier to do business. 'It is now possible for fund managers to advise on listed securities, allowing them to provide advisory services," said Kush Gupta, director at SKG investment & Advisory. He added that the revision of investment thresholds would give angel funds more flexibility to choose their investments. What relief has Sebi offered to FPIs who invest only in government securities? Sebi has eased compliance norms for foreign portfolio investors that invest only in government securities (GS-FPIs). Key measures include longer KYC review cycles, no need to disclose investor group structures. NRIs and OCIs can now be constituents of GS-FPIs without restrictions, and material changes can be reported within 30 days, from from 7 days. These steps aim to attract foreign capital as Indian G-Secs have been included in global bond indices since 2024-25. Also read: Sebi engages with venture capital funds directly to smoothen transition to AIF 'The risk profiling for FPIs who only invest in G-Secs is now various notches lower than a mix portfolio FPI with significant easing," said Manisha Shroff, partner at Khaitan & Co. However, she flagged some legal ambiguities. 'Sebi's relaxation is currently only for existing and prospective FPIs that exclusively invest in G-Secs. The fine print on how long such FPIs need to remain sovereign-only and if there will be different and fast-tracked registration process remains to be seen." What is the new settlement scheme for brokers involved in the NSEL case? Sebi has introduced a one-time monetary settlement plan based on quantity and value of trades. Brokers facing enforcement actions—but not named in charge sheets or declared defaulters—can opt in to close proceedings. The settlement mechanism for NSEL-related brokers is a bold move to unclog legacy enforcement actions, said Amit Tungare, managing partner at Asahi Legal, said. "Sebi will need to ensure that the settlements do not dilute accountability, particularly in cases involving systemic failure", he said.
Time of India
2 days ago
- Business
- Time of India
Sebi eases regulations for startup founders and public sector cos to boost capital market
The Securities and Exchange Board of India (SEBI) has approved new rules. Startup founders can now hold employee stock options after listing. Alternative investment funds get co-investment opportunities. Public sector companies can voluntarily delist with relaxed norms. Foreign funds will benefit from eased investment rules. These changes aim to boost investment and simplify regulations for businesses in India. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The board of India's capital markets regulator on Wednesday cleared a draft of measures to enable ease of doing business, including allowing startup founders to continue holding employee stock options (Esops) even after listing, extending co-investment opportunities to alternative investment funds , and permitting voluntary delisting of public sector rules require founders to be classified as promoters at the time of filing of initial public offering (IPO) documents. However, once listed as promoters, they are ineligible to hold or be granted share-based benefits. If they hold Esops at the time of filing of offer documents, they are required to liquidate such benefits before the IPO."This provision has been found to be impacting founders," Sebi chairman Tuhin Kanta Pandey are "classified as promoters at time of filing of DRHP (draft red herring prospectus)," Pandey regulator said the new rule would facilitate founders who received such benefits at least one year prior to the filing of DRHP with Sebi, to continue to hold such also eased norms for foreign funds investing in government securities. This comes at a time when several global index providers have included local sovereign debt in their respective bond indices, such as JP Morgan Global EM Bond Index, Bloomberg EM Local Currency Government Index and FTSE Russell Emerging Markets Government Bond has harmonised KYC (know your client) requirements with the central bank Sebi also clarified that no new Esops could be issued to promoters after the company is listed. The regulator has also approved tweaking of rules on offer for said equity shares received upon conversion of fully paid-up compulsorily convertible securities received pursuant to an approved scheme would be exempted from the requirement of a minimum public holding period of one present, this exemption is allowed only for equity shares acquired pursuant to an approved scheme. "This will assist the companies contemplating reverse flipping," the Sebi chief Sebi board also approved the proposal to allow public sector companies (PSUs) to voluntarily delist from stock exchanges through a separate carve-out mechanism-provided the government holds more than 90% stake. There are five listed PSUs where government holding equals or exceeds 90%.This new rule would not be applicable to banks, non-banking financial companies and insurance delisting is considered successful if the promoter's shareholding, along with shares tendered by public shareholders, reaches 90%.Under the proposed mechanism, PSUs could go private through a fixed-price delisting process, irrespective of whether their shares are frequently or infrequently traded. However, the fixed delisting price would need to be at least 15% premium over the floor regulator has also relaxed the requirement of securing approval from two-thirds of public shareholders for delisting Sebi board also approved the proposal to permit AIFs and investors to co-invest in unlisted companies through AIFs."Sebi's approval of a dedicated co-investment vehicle (CIV) framework under the AIF regulations is a breakthrough reform. It streamlines how accredited investors - already participants in AIFs - can co-invest in high-conviction opportunities alongside fund managers, aligns India with global norms, and removes longstanding friction around such structures," said Gopal Srinivasan, chairman and managing director, TVS Capital new norms will allow both higher fund flows and limit regulations, experts said."This will further increase the flow of private--especially domestic capital--to entrepreneurial and growth businesses. By limiting CIVs to accredited investors, Sebi has also signaled a shift toward more principle-based, lighter-touch regulation for qualified participants," Srinivasan said. "Alongside the clarity on ESOPs for startup founders, this marks Sebi's strong commitment to innovation, deeper capital access, and sustained alignment among investors, founders, and fund managers," Srinivasan regulator said a separate co-investment scheme would have to be launched for each co-investment in an investee company.
