204th meeting of the SEBI (Securities and Exchange Board of India) Board concluded with some major approvals

Posted 18 Mar 2024

Updated 28 Mar 2024

2 min read

SEBI announced launch of Beta version of optional T+0 settlement for limited scrips and brokers.
- T+0 settlement allows both funds and securities transactions to be settled on same day when the trade is initiated.
- Presently, Indian securities market operate on T+1 settlement cycle.

Enhancing Ease of Doing Business (EoDB) for Foreign Portfolio Investors (FPIs):
- Exempted additional disclosure requirements for FPIs holding more than 50% of their India equity Assets Under Management (AUM) in a single corporate group.
- Relaxed timelines for the disclosure of material changes to their designated depository participant (DDP).
- FPI registrations that expire due to non-payment of registration fee, shall be permitted to be reactivated within 30 days.

Facilitating EoDB for companies coming for Initial Public Offering (IPO)s (process for company to be publicly listed):
- Doing away with requirement of 1% security deposit in public/rights issue of equity shares.
- Change in size of offer for sale shall be based on only either issue size in rupees or number of shares.
Enhancing trust in AIF (Alternative Investment Fund) ecosystem by introducing due diligence measures for investors and investments.
- AIF is a privately pooled investment vehicle which collects funds from investors for the purpose of investing.

FDI is an investment by a person resident outside India in an unlisted Indian company or in 10% or more of its paid up equity capital of a listed Indian company.
FPI is an investment by a person resident outside India in equity instruments (shares, debentures etc.) where such investment is less than 10% of paid up equity capital of a listed Indian company.

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