The Securities and Exchange Board of India (SEBI) has brought flexibility in its framework for Large Corporates (LCs) for meeting incremental financing needs through issuance of debt securities. In a statement released of late, SEBI said that higher monetary threshold has been specified for defining LCs, thereby reducing the number of entities qualifying as LCs; removal of penalty on LCs which are not able to raise a certain percentage of incremental borrowing from the debt market; introduction of incentives and moderated disincentives.
The statement also said that with the view to facilitate ease of compliance and ease of doing business, the Board also decided to retain the requirement that compliance with the framework will be met over a contiguous block of three years. Further, it has been decided to dispense with the requirement on LCs for filing a statement.
The statement also said that the proposal for transfer of unclaimed amounts lying in escrow account for more than seven years, to the IPEF for debt-listed entities other than companies under LODR Regulations was approved by the SEBI Board in its meeting held on 30th September, 2022. Similarly, the proposal to transfer the unclaimed or unpaid amounts to investors in REITS and InvITs to IPEF was approved by the SEBI Board in its meeting held on 20th December, 2022. Accordingly, changes were made in the REITs regulations and InvIT regulations.
With a view to further streamline the credit of unclaimed amounts and provide for claim of such unclaimed amounts, the Board has approved amendments to the IPEF regulations, LODR regulations, REIT regulations and InvIT regulations with the objective of prescribing a uniform process of claim for such amount in a streamlined manner for the ease and convenience of investors. Investors may approach the debt-listed entity/REIT/InvIT to claim their unclaimed amounts, thereby ensuring minimal disruptions in the claim process for investors creating a regulatory framework for segregation of unclaimed amounts of investors in the IPEF, to facilitate utilsation and processing of such amounts in the manner prescribed by the Board, added the statement.
In addition to it, SEBI has also extended the timeline for compliance with enhanced qualification and experience requirements for Investment Advisers.
SEBI, vide SEBI (Investment Advisers) (Amendment) Regulations, 2020,required individual investment advisers, principal officers of non-individual investment advisers and persons who are with the investment advisers and associated with investment advice to comply with enhanced qualification and experience requirements by 30th September, 2023. Based on representations received from various stakeholders, and, in view of the emerging landscape of the domain of investment advice, it has been decided to allow time up to 30th September, 2025 to comply with these requirements, concluded the statement.
