The Securities and Exchange Board of India (Sebi) on Tuesday took a slew of choices easing the criteria for superior voting rights (SR), amending guidelines on associated party transactions as also on the delisting framework. Sebi decided to unwind the eligibility needs associated to SR Shares framework. An SR shareholder, as an person, ought to not have a net worth of more than Rs 1,000 crore.
The current provisions necessary that an SR shareholder ought to not be component of a promoter group with a net worth of more than Rs 500 crore. Further, the minimum gap in between the issuance of SR shares and the filing of RHP has been decreased to 3 months from the current 6 months.
The board also authorized the amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in relation to regulatory provisions on associated party transactions (RPTs). A associated party shall include things like all persons or entities forming component of promoter or promoter group irrespective of their shareholding. Any individual/entity holding equity shares in the listed entity either straight or on a useful interest basis at any time for the duration of the quickly preceding economic year, to the extent of 20 % or more would also be a associated party.
The regulator authorized an amendment to the regulatory framework for delisting of equity shares pursuant to open give as offered below the extant Regulation 5A of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations).
The revised framework aims to make M&A transactions for listed businesses a more rational and handy workout, balancing the interest of all investors in the procedure, the capital markets watchdog mentioned. Among the important guidelines of the new framework is that the acquirer who is desirous of delisting a corporation, have to propose a greater price tag for delisting with appropriate premium more than the open give price tag.
The Sebi board also cleared a proposal for setting up a gold exchange wherein the yellow metal will be traded in the type of electronic gold receipts and the bourse will assist in getting a transparent domestic spot price tag discovery mechanism.
The instruments representing gold will be known as Electronic Gold Receipts (EGRs) and will be notified as securities, Sebi chairman Ajay Tyagi mentioned at a press conference. EGRs will have the trading, clearing and settlement features akin to any other securities,” Tyagi mentioned. Any recognised stock exchange, current as nicely as new, can launch trading in EGRs in a separate segment.
According to the regulator, the exchange would be a national platform for shopping for and promoting EGRs with underlying standardised gold in India and also produce a national pricing structure for gold. Spelling out the criteria for vault managers, Sebi mentioned vault manager ought to be a body incorporated in India and ought to have a net worth of at least Rs 50 crore.
The vault manager will be registered and regulated as a Sebi intermediary for supplying vaulting services meant for gold deposited to produce EGRs.