Get All Access for $5/mo

SEBI Gives Nod for Same-day Stock Settlement Trial During the 204th meeting of the SEBI Board, it came to a consensus of the launch of Beta version of optional T+0 settlement

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Wiki Media Commons

On Friday, the Indian market regulator Securities and Exchange Board of India announced that it is looking to start a pilot project for moving to a T+0 settlement regime in the stock market on an optional basis. Initially, it would limited to 25 stocks with limited few brokers.

During the 204th meeting of the SEBI Board, it came to a consensus on the launch of the Beta version of the optional T+0 settlement. "In parallel, SEBI shall continue to do further stakeholder consultation, including with the users of the Beta version," the official statement read.

Additionally, it shall review the progress after three and six months from the date of the implementation, and decide on further course of action.

Other SEBI Board meeting Outcomes

The board also decided on the exemption of additional disclosure requirements for certain FPIs. This will be applicable for FPIs having more than 50 per cent of their India equity AUM in a single corporate group.

In order to facilitate ease of doing business for FPIs, SEBI approved for relaxation of the timelines for disclosure of material changes which currently is within seven working days. It has also called for the materials to be categorized into two categories- Type I and Type II. "Type I material changes, shall continue to be informed by FPIs to their DDP within seven working days of the occurrence of the change. However, supporting documents for the same (if any) shall now be required to be provided within 30 days of such change. Other material changes (categorized as Type II) shall be informed along with supporting documents (if any) by FPIs to their DDP within 30 days of such change," it stated.

It also made amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. It is doing away with the one per cent security deposit in public/rights issue of equity shares. Promoter group entities and non-individual shareholders with more than five per cent of the post-offer equity share capital will be permitted to contribute to minimum promoters' contribution without being identified as a promoter; equity shares from the conversion of compulsorily convertible securities held for a year prior to the DRHP filing will be an MPC requirement; and increase or decrease in size of an offer for sale shall be based on either of the two- either issue size in rupees or a number of shares.

For the listed companies, mcap-based compliance requirements will be determined on the basis of the average market capitalization of six months ending December 31. There is an increase in the maximum permitted time gap between two consecutive meetings of the Risk Management Committee to 210 days.

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
Data & Recovery

Get $60 off This Portable VPN Travel Router

Why keep paying for a VPN service when you can have a tiny, lightweight piece of hardware that can provide you with a lifetime of maximum VPN protection?

Growing a Business

6 Effective Strategies to Secure Funding

Use these six proven strategies to secure the funding you need.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Business News

In Just 3 Words, Kevin O'Leary Offers a Grim Outlook on Interest Rates and Inflation

The "Shark Tank" star appeared on Fox Business' "Sunday Night in America with Trey Gowdy" and said it is "hard to see" mortgage rates dropping any time soon.

Business News

Toyota Loses Over $15 Billion in Market Value After Investigation

The company was accused of falsifying engine test results that stopped shipment on three vehicle models earlier this year.

News and Trends

Battery Smart Raises USD 65 Mn in Series B to Boost EV Battery Swapping Network

Orios Venture Partners achieves a 29x return with a strategic partial exit from Delhi-based EV startup, enhancing early-stage investment success.