SEBI holding critical board meeting amid regulatory changes

SEBI ’s board meeting: The market watchdog, the Securities and Exchange Board of India ( SEBI ) will be meeting the board today on September 30, 2024. This is the first meeting happening after the entire Hindenburg saga unfolded. The meeting is going to address some key things such as the ‘New asset class’, merchant bankers' regulations, and also the minimum contract value for F&O contracts on the agenda. 

Highlights of agenda items

One of the new product offerings will include a discussion on providing mutual funds and PMS. The hope is that this initiative would help expand the full possibilities of investment within the Indian market in the face of constant changes in regulatory frameworks.

In July, it further proposed the concept of a "New Asset Class," which would, in all practicality act somewhat like mutual funds and PMS combined, offering investment products. It is likely to get configured against the existing mutual fund base and would help check losses in futures and options.

Possible Effects on Merchant Bankers

The Related development; over 100 registered investment bankers could lose their licenses as SEBI looks to revamp the Merchant Bankers Regulation, which has been in place since 1992. Under the new regulation expected to be put in place, several of the stringent requirements may include cancellation of license if the firms are not able to meet an income threshold through core merchant banking activities.

Foreign Portfolio Investors raise concerns

Some foreign portfolio investors have raised alarms regarding the proposed curbs by SEBI on derivatives trading. SEBI officials have reportedly assured FPIs in private discussions during the recent JP Morgan India Investor Summit that their major one is high volumes in index options around expiration being taken seriously. Conclusion. One significant outcome of this board meeting may be associated with deep, decisive reforms in India's financial environment practices in terms of regulatory dealings.