Mon Sep 30 21:56:09 UTC 2024: ## SEBI Unveils New Measures to Boost Market Efficiency and Accessibility

**Mumbai, India** – The Securities and Exchange Board of India (SEBI) announced a series of regulatory changes on Monday aimed at simplifying processes, enhancing market efficiency, and broadening access to investment opportunities.

**Key Highlights:**

* **Investment Strategies:** A new asset class called “Investment Strategies” will be introduced under the existing mutual fund framework. This product aims to bridge the gap between traditional mutual funds and portfolio management services, offering greater flexibility and risk-taking potential for high-net-worth investors. It is designed to address the proliferation of unregulated investment schemes offering unrealistic returns.
* **Block Deal and T+0 Settlement:** The number of scrips eligible for trading under the optional T+0 settlement cycle will be increased from 25 to the top 500 companies by market capitalization. This will allow faster settlement and execution of trades. A new block window mechanism will also be introduced for block deals under the T+0 settlement cycle.
* **Simplified Rights Issues:** SEBI has significantly streamlined the process for rights issues, reducing the timeline from an average of 317 days to 23 working days. This will enable companies to access funds more quickly and make rights issues a more attractive fundraising option.
* **Reduced Disclosure Requirements:** SEBI has eased various reporting requirements for listed entities, including reducing the need for detailed newspaper advertisements of financial results and providing more time for disclosures of board meeting outcomes and litigations.
* **New Framework for Mutual Funds Lite:** SEBI introduced a “Mutual Funds Lite” framework to simplify regulations for passively managed mutual fund schemes. This is expected to encourage new entrants into the market by reducing requirements related to net worth, track record, and profitability.
* **Expanded Insider Trading Regulations:** SEBI has broadened the scope of its insider trading regulations to include a wider range of individuals who are indirectly associated with the securities market. This will help to ensure a more level playing field for all investors.

**Industry Reactions:**

Makarand M Joshi, founder of MMJC and Associates, welcomed the reduced timelines for rights issues, stating that it will make the process more efficient and attractive for companies seeking funds. He also highlighted the importance of awareness regarding the expanded insider trading regulations to ensure effective implementation.

The SEBI’s comprehensive changes are expected to boost market participation, increase investment options for investors, and enhance the overall efficiency and transparency of the Indian capital markets.

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