SEBI's Initiatives to Enhance Ease of Doing Business for Foreign Investors

Introduction of SWAGAT-FI Framework

• SWAGAT-FI Framework: A proposed framework by SEBI to create a single automatic window for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs).
• Aims: To streamline and standardize access for select foreign investors, simplifying compliance and enhancing India's competitiveness as an investor-friendly destination.
• Eligible Investors: Includes government-related investors and regulated Public Retail Funds (PRFs) like mutual funds, insurance companies, and pension funds.
• Implementation: The SWAGAT-FI framework is to be implemented within six months.

Relaxation of IPO Norms

• Large Issuer Norms: For companies with a market cap of Rs 1 lakh crore to Rs 5 lakh crore, SEBI proposed a minimum public offer of 2.75%.
• Decision Authority: Final decisions on these norms will be taken by the government.

Governance of Market Infrastructure Institutions (MIIs)

• Executive Appointments: SEBI approved the appointment of two executive directors to enhance governance and succession planning within MIIs.
• Roles and Responsibilities: Defined for managing directors (MDs), executive directors (EDs), and key management personnel (KMPs).

Enhancements in IPO Process

• Anchor Portion Reservation: Increased from one-third to 40%, with a focus on enhancing participation of institutional investors.
• Allocation: One-third reserved for domestic mutual funds, the rest for life insurance companies and pension funds.

Related Party Transactions and AIF Schemes

• Scale-Based Thresholds: Introduced for determining material related party transactions (RPTs) based on annual consolidated turnover.
• AI-Only Schemes: A separate category of AIF schemes limited to accredited investors, offering scheme-specific regulatory flexibilities.

Investor Protection and Financial Inclusion in Mutual Funds

• Exit Load Reduction: Maximum permissible exit load reduced from 5% to 3%.
• Incentive Structure: Revised for distributors to encourage new inflows from cities beyond the Top-30.