In a groundbreaking SEBI announcement, Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), addressed various crucial issues relevant to all stock market investors. The out-of-turn press conference held on Monday shed light on significant changes that will shape the Indian stock market’s future.
Stock Market Update- Key Highlights From the Latest SEBI Announcements
- SEBI is proposing fixed-price delisting to make it easier for companies to exit the stock market.
- SEBI is working towards enabling instantaneous settlement of transactions, enhancing efficiency in Indian share markets.
- SEBI aims to enhance corporate disclosures related to insider trading regulations for increased transparency pertaining to the details about share market.
- T+1 settlement, redemption and allotment for mutual funds: Mutual fund units’ redemption and allotment may soon be settled within one day, making the process faster.
- A consultation paper on Finfluencers will be released, barring regulated entities from engaging with them.
1. Simplifying the Delisting Process
SEBI recognises the need to streamline the exit process for listed companies in the stock market. The regulator is actively working on a proposal to introduce fixed-price delisting.
This move aims to make it easier for companies to exit the market, preventing situations where companies find it challenging to withdraw, similar to the mythological character Abhimanyu from Mahabharat. The SEBI chief emphasised that voluntary delisting frameworks have been introduced to facilitate this process.
2. Instant Settlement on the Horizon
As per the latest stock market update, SEBI is taking measures to make instant settlement of transactions a reality in the Indian markets. The regulator is actively engaging with all market stakeholders to expedite this process.
While Indian share markets are already among the fastest in the world, the goal is to leverage the Indian tech stack to accelerate the settlement process further. This means that trades can be settled instantaneously, with entities receiving money and securities in real time.
3. Strengthening Insider Trading Rules
SEBI aims to enhance transparency in the trading of securities by revising insider trading rules related to ‘trading plans’ disclosed by company insiders. By strengthening rules governing corporate disclosures, SEBI ensures that all market participants have access to essential details about share market information, empowering them to make well-informed decisions.
4. T+1 Settlement for Mutual Funds
SEBI plans to introduce T+1 redemption and allotment for mutual fund units, a significant shift from the current T+2 settlement. With this change, the redemption and allotment process for mutual fund units will be expedited, further enhancing the efficiency of the mutual fund market.
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5. SEBI’s Stance on Finfluencers
Addressing concerns about Finfluencers, SEBI clarified that it cannot directly regulate individuals’ recommendations made in their private capacity. However, regulated entities like stock brokers and mutual funds will be prohibited from engaging with Finfluencers or having any dealings with them. This measure aims to safeguard investors and maintain a fair and regulated market environment.
SEBI’s recent announcements signify a transformative phase for the Indian stock market, bringing enhanced efficiency, transparency, and investor protection. Investors can look forward to a more streamlined and investor-friendly ecosystem as these changes take effect.
With SEBI’s game-changing announcements, stock market investors can anticipate a more transparent, efficient, and investor-friendly ecosystem, paving the way for better decision-making and opportunities.
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.