SEBI concludes Board meeting, decides future roadmap
Published: Feb 13, 2017
By TIOLCORP News Service
MUMBAI, FEB 13, 2017: THE Board of Securities and Exchange Board of India (SEBI) met in New Delhi and took several vital decisions. First, the budget for 2017-18 was considered and approved by the board. The Board also discussed the plan of action for FY 2017-18. Some of the major initiatives proposed are as follows:
+ Reducing the listing time gap by bringing down the issue timing from the existing requirement of T+6. Allowing, in consultation with Stakeholders and Regulators, institutional participation in commodity derivatives markets in phased manner.
+ Facilitating integration between Commodity Spot markets and Derivatives markets, SEBI to initiate consultation with various stakeholders.
+ Designing a system of Risk Based Supervision for commodity brokers.
+ Setting up a Cyber Security Lab for the securities market.
+ Allowing listing and trading of securitisation receipts issued by Assets Reconstruction Companies (ARC) etc.
+ Facilitating the objective of “Ease of doing Business”, introduction of common application form for registration, opening of bank and demat accounts, and issue of PAN for Foreign Portfolio Investors (FPIs).
+ Setting up a facility for online registration of intermediaries.
Offshore Derivative Instruments (ODIs)
The Board was informed about the various aspects of ODIs and the various steps taken by SEBI after September, 2014, The Board noted that in view of the strict norms for ODI issuance, the notional value of ODIs to the AUC of FPIs has declined over the years from a high of 55.7% of total asset under custody (AUC) in June 2007 to 6.7% in December 2016. The consistent tightening of ODI norms by SEBI has not only been through increased compliances but also improved transparency. It was also noted that simultaneous liberalization by SEBI in registration process of FPIs has made ODI less attractive vis-à-vis taking direct registration as FPI.
Complaints against NSE's co-location facility
The Board took note of the information memorandum on various references received related to co-location facility of NSE and the examination carried out by SEBI under the guidance the Technical Advisory Committee (TAC) of SEBI. As advised by SEBI, NSE's Board has also undertaken an independent forensic audit on the matter. The Board also took note of steps taken by SEBI in consultation with TAC to strengthen the exchange's trading infrastructure in the areas namely, fair and transparent data dissemination process, tools to monitor service quality of data feeds, mechanism to manage system load in a fair manner, direct connectivity between co location facilities of exchanges, etc. The concerns related to systems and processes at the exchange arising out of examinations are being addressed in consultation with TAC and NSE's Board.
Review of regulations and relevant circulars pertaining to Market Infrastructure Institutions (MIIs)
The Board noted the recommendation of Dr. Bimal Jalan Committee to review the working of MIIs after five years. After deliberation, the Board approved the proposal for comprehensive review of Securities Contracts (Regulation).
