The Securities and Exchange Board of India (SEBI) on June 27, 2024, notified regarding the 206th meeting of the SEBI Board.
The SEBI Board, inter-alia, approved the following:
• The persons regulated by the Board and the agents of such persons shall not have any association, like, any transaction involving money or money’s worth, referral of a client, interaction of information technology systems or any other association of similar nature or character, directly or indirectly, with any other person who, directly or indirectly, provides advice or recommendation or makes any implicit or explicit claim of return or performance, in respect of or related to security or securities unless permitted by the Board to provide such advice/ recommendation/claim.
• Introduction of Fixed Price process as an alternative to Reverse Book Building process (RBB) for delisting of companies whose shares are frequently traded. The fixed price offered by an acquirer shall be with at least 15% premium over the floor price as determined under Delisting Regulations.
• In order to facilitate ease of doing business for FPIs, the Board approved a proposal to exempt University Funds and University related Endowments, registered or eligible to be registered as Category I FPI, from additional disclosure requirements prescribed under SEBI’s August 24, 2023 circular, subject to the following conditions:
o Its India equity AUM is less than 25% of its Global AUM.
o Its global AUM is more than INR 10,000 crore equivalent.
o It has filed appropriate returns/ filing to the respective tax authorities in its home jurisdiction to evidence that the entity is in the nature of a non-profit organisation that is exempt from tax.
[Press Release No. 12/2024]
