SEBI board meeting relaxed key regulations and introduced SWAGAT-FI framework for improving investment friendly environment and reduce regulatory complexity.
Decisions at SEBI Board Meeting
- SWAGAT-FI Framework: SEBI approved the introduction of the Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework for FPIs and Foreign Venture Capital Investors (FVCIs).
- While FPIs invest in listed securities (like equity, bonds, derivatives etc.) on public markets, FVCI invests in venture capital funds.
- India Market Access Platform: Launched as a digital gateway to facilitate seamless entry and compliance for foreign investors in India’s securities markets.
- Reclassification of Real Estate Investment Trusts (REITs) as Equity: Enabling enhanced investment by mutual fund schemes in REITs.
- REITs allow individuals to invest in large-scale, income producing real estate.
- Relaxed Initial Public Offering (IPO) norms for large issuers and extended timelines to meet the Minimum Public Shareholding for issuers.
- IPO refers to when a company first sells its shares to the public and is prerequisite for listing on stock exchange.
- Introduction of a separate category of Alternative Investment Funds (AIFs) schemes, limited exclusively to accredited investors only (AI-only schemes).
- Accredited Investor is an individual or entity that meets specific income, net worth or professional qualification criteria, allowing them to invest in securities not registered with SEBI.
