Regulatory updates

This consultation paper seeks comments from public on the following proposals related to ease of doing business for Currently, the LODR Regulations permit companies to issue warrants or cheques for payment of dividends, interest, redemptions or repayments where electronic mode of payment is not possible.

However, considering the benefits of electronic payment and to bring the process of payment of dividend, interest, redemption or repayment to demat account holders at par with physical securityholders (for whom any form of payment is mandatorily required to be done through a digital mode), it has been proposed that any payment including dividend, interest or redemption or repayment by listed entities/RTAs¹⁰RTAs are Registrars to an issue and Share Transfer Agents be mandated to be made in electronic form only for demat account holders also.

The consultation on this paper ended on 11 October 2024.

To access the text of the consultation paper, please click here RTAs are Registrars to an issue and Share Transfer Agents

Currently, the PIT Regulations mandate closure of the trading window when the compliance officer of the company determines that the Designated Persons (DPs) can reasonably be expected to have possession of UPSI.

During the trading window closure, the DPs and their immediate relatives are prohibited from trading in the securities to which such UPSI relates, so as to prevent unfair gains due to information asymmetry.

SEBI has exempted certain transactions that meet prescribed criteria from the trading window restrictions- these inter alia include subscribing to Offer for Sale and Rights Entitlement. Considering that subscription to NCS is a pre decided event, and is regulated and subject to disclosure requirements/shareholder approval under the respective regulations, it has been proposed to exempt subscription to NCS from the trading window restrictions. SEBI has also invited suggestions on other transactions that meet prescribed criteria that can be exempt from the trading window restrictions. The consultation on this paper ends on 17 October 2024.

To access the text of the consultation paper, please click here

SEBI vide this consultation paper has proposed the following:

Half-yearly disclosures: The disclosure of expenses, expense ratio, returns and yields of all regular plans and direct plans should be disclosed separately in a standard format

Risk-o-meter: To enhance the pictorial representation of risk, it has been proposed to colour code the risk-o-meter.

The consultation on this paper ends on 18 October 2024.

To access the text of the consultation paper, please click here