Sebi's 5 big announcements all stock market investors must know

Sebi Simplifies Delisting Process to Aid Companies

Securities and Exchange Board of India SEBI chairperson Madhabi Puri Buch spoke at an out of turn press conference on Monday and announced five major changes to the Indian stock market.

These changes include simplifying the delisting process, allowing for instant settlement of transactions, strengthening insider trading rules, and reducing the settlement time for mutual fund units.

The regulatory body is actively working on a proposal to allow fixed-price delisting, making it easier for companies to exit the stock markets. The move is aimed at avoiding situations where companies find it challenging to exit the market, equating them to the mythological character Abhimanyu from Mahabharat.

Here is a more detailed explanation of the five announcements made by Sebi chairperson Madhabi Puri Buch:

1. Simplifying the delisting process:

Sebi is considering allowing companies to delist from the stock market by offering a fixed price to shareholders. This would make it easier for companies to exit the market, and it would also provide shareholders with a more certain exit price.

2. Allowing for instant settlement of transactions:

Sebi is working on a system that would allow for instant settlement of transactions on the stock exchange. This would mean that investors would receive the money from their trades immediately, and they would also receive the securities that they purchased immediately.

3. Strengthening insider trading rules:

Sebi is considering reviewing the insider trading rules to make them more stringent. This would include requiring company insiders to disclose their trading plans in advance, and it would also make it easier for Sebi to investigate insider trading cases.

4. Reducing the settlement time for mutual fund units:

Sebi is planning to reduce the settlement time for mutual fund units from T+2 to T+1. This would mean that investors would receive the money from their redemptions or purchases of mutual fund units one day sooner.

5. Releasing consultation paper on finfluencers:

Sebi is planning to release a consultation paper on finfluencers. Finfluencers are individuals who provide financial advice on social media platforms. Sebi is considering regulating finfluencers to ensure that they provide accurate and unbiased financial advice.

Empowering Investors with Regulatory Measures

The announcements made by Sebi's chairperson, Madhabi Puri Buch, underscore the regulator's commitment to empowering investors and enhancing the efficiency and transparency of the Indian stock markets. By streamlining processes, bolstering insider trading regulations, and introducing measures like T+1 redemption for mutual funds, Sebi aims to create a conducive environment for both investors and companies in the Indian financial landscape.

Conclusion:

Sebi's recent announcements bring about important changes that will impact stock market investors in India. From simplified delisting procedures to instant settlement, enhanced corporate disclosures, faster mutual fund redemption, and upcoming regulations for finfluencers, these measures strive to improve transparency and efficiency in the market, ultimately benefiting investors and market participants alike.