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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. 

 

Foreign Direct Investment (FDI) vs FPI

  • 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.
  • Tags :
  • T+0 settlement
  • SEBI
  • FDI and FPI
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