The Sebi board may meet Saturday, amid a huge controversy over loan defaults by Vijay Mallya-led UB Group firms, to discuss a plan to choke fund-raising taps for ‘wilful defaulters’ while fund-raising norms are set to be made easier for start-ups as part of wide-ranging reforms in capital markets. The proposed moves are aimed at safe-guarding the interest of small investors while deepening the capital market to provide new products and avenues for institutions, a senior official said.
Besides, Sebi will discuss and take forward various steps announced last month in the Union Budget by Finance Minister Arun Jaitley, who will also address Saturday the board members and top officials of the regulatory body.
The Securities and Exchange Board of India (Sebi) is also likely to tighten its takeover regulations by introducing ‘bright lines’ to define change in control in a merger and acquisition.
It may also decided to join RBI and the government in their fight against bad loans as it plans to make it tougher for such entities and their companies to raise funds from the capital markets.
It may also announce a new set of norms for index providers that would regulate changes in constituents of the key stock market indices, including the Sensex and the Nifty. Besides, the board will discuss a plethora of proposals regarding distribution of various cash benefits through depositories. Other proposals on the agenda include a favourable tax regime for alternative investment funds (AIFs) and easier access to capital for start-ups and new avenues like crowd-funding, a senior official said.