The new leadership of the Securities and Exchange Board of India (SEBI) is emphasizing the approach to removing the regulation and is also focusing on strengthening the administration. This can be gauged from some major decisions of the recent board meeting of the market regulator. SEBI chief Tohit Kant Pandey has emphasized the ‘cost impact’ of regulatory changes, indicating that it is different from the previous rapid perspective of the regulator.
Pandey, who became a regulator as an officer as an officer, said on Monday, “If the path of business can be easy without compromising with the risk from an alternative point of view, we will see his possibility. Regulatory changes should be easy and clear. However, he emphasized a cautious approach to protect the market system from unnecessary burden.
On Monday, the soft trend of SEBI was seen. The market regulator postponed the proposal to monitor the appointment of major managerial personnel (KMP) in market infrastructure institutions (MII), such as stock exchange and clearing corporations. He also postponed implementation of strict changes in the rules controlling investment bankers and custodians, for which he cited unnecessary complications and risk of non-essential costs.
In addition, SEBI overturned the previous decisions taken in its December meeting, in which the advance fee collection period for the Research Analyst (RA) and Investment Advisor (IA) was limited to three and six months respectively. The period was given to one year giving relief. Pandey said, “It is necessary to take time on them and improve them before issuing the rules.”
Analysts have praised this change. Former full -time member of SEBI MS Sahu said, “I am happy that SEBI is focusing on removing the board regulation and strengthening the administration.” The legal and industry has described it as a clear U-turn from the previous perspective of the regulator.
The board meeting also exempted the category 2’s alternative investment funds (AIF) and allowed them to invest in the date segment. Of course, this and some other announcements of Monday proposed months ago
Was gone
Sandeep Parekh of Finsec Law Advisors said, “The new rule considers the listed loans (below A rating) with the objective of investing, which is a smart move. I hope that this will pave the way for mild regulation in the AIF area. Foreign portfolio investors (FPIs) are also relieved. However analysts believe that this is an area that requires further reconsideration.
First Published – March 25, 2025 | 11:00 PM IST
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