Sebi board meet outcome: All decisions taken by market regulator explained

Sebi launched the Mutual Funds Lite framework for passive funds, easing regulatory requirements to attract more entities into the mutual fund market.

The Securities and Exchange Board of India (Sebi) held its board meeting today (September 30)- the first since US short seller Hindenburg Research raised allegations against Chairperson Madhabi Puri Buch regarding conflicts of interest. As investors were watching out for the Sebi meeting, here's a look at the decisions taken by the market regulator:

MF Lite framework for passive funds

Sebi decided against tightening regulations on futures and options transactions during its latest board meeting, while also introducing a new investment product linking mutual funds and portfolio management services.

Sebi announced liberalised Mutual Funds Lite (MF Lite) framework for passively managed schemes of mutual funds under which there would be a series of relaxed regulatory requirements designed to facilitate easier entry into the mutual fund market. Barriers related to net worth, track record, and profitability would be lowered, allowing more entities to enter the mutual fund space. and simplified responsibilities for trustees are expected to ease compliance burdens and encourage new market participants.

Proposal to ensure ODIs are subject to disclosure requirements

Sebi announced changes to regulations governing ODI (Offshore Derivative Instruments) disclosures as it said that a monitoring and compliance mechanism will be established to ensure that ODI-issuing Foreign Portfolio Investors (FPIs) submit relevant information about ODI subscribers to the depositories as well as segregated portfolio-level information to the Designated Depository Participant (DDP) or Custodian.

Sebi on new asset class

Sebi has taken no decision to tighten the rules on futures and options transactions.