The Securities and Exchange Board of India (SEBI) is holding a crucial board meeting today (September 30, 2024). The meeting is set to cover a wide range of topics, including tighter regulations for Futures & Options (F&O) trading, the launch of a ‘New Asset Class’, and mutual fund lite regulations. Here’s a quick breakdown of what’s on the table:
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1. Tighter Norms for F&O Trading 📊
SEBI is expected to tighten regulations for F&O trading, an area under scrutiny due to high speculative activity. Potential measures include:
- Restricting multiple option contract expiries
- Increasing the size of option contracts
- Introducing intraday monitoring of position limits
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2. New Asset Class 💼
A new investment product combining rights issues with preferential share allotment is on the cards. This asset class, aimed at high-net-worth individuals (HNIs), would bridge the gap between mutual funds and portfolio management services (PMS), with a minimum investment requirement of ₹10 lakh.
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3. Mutual Fund Lite Regulations 💰
SEBI plans to streamline compliance for passively managed mutual fund schemes, making it easier for retail investors to enter the market. These “lite” regulations aim to reduce compliance costs, boosting retail participation.
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4. Easing FII Investments 🌍
Foreign Institutional Investor (FII) participation in Indian markets is likely to see relaxed regulations, encouraging more global investment.
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5. Leadership & Culture Issues 🚨
On the backdrop of Hindenburg Research‘s allegations against SEBI Chairperson Madhabi Puri Buch regarding offshore investments and Adani Group ties, the board is also expected to discuss this matter. Additionally, employee protests concerning toxic workplace culture and leadership issues will be addressed.
With so many significant decisions on the agenda, today’s meeting could mark a turning point for SEBI’s regulatory landscape.
📅 Stay tuned for updates on these critical discussions!