Latest news with #IGBs
India Gazette
18-06-2025
- Business
- India Gazette
SEBI approves relaxation of compliance for FPIs investing only in G-Sec, takes several key decisions
Mumbai (Maharashtra) [India], June 18 (ANI): The market regulator Securities and Exchange Board of India (SEBI) on Wednesday approved a set of relaxations for Foreign Portfolio Investors (FPIs) investing in Indian Government Bonds (IGBs), also known as G-Secs. The decision is part of a series of proposals cleared by the SEBI Board during its meeting that took place in Mumbai. The market regulator has harmonised the periodicity of Know Your Customer (KYC) reviews for GS-FPIs with those mandated by the Reserve Bank of India. SEBI Chairman Tuhin Kanta Pandey made the announcements of SEBI Board decisions on Wednesday. In another critical relaxation, GS-FPIs will be exempt from submitting investor group details, a requirement primarily intended for monitoring equity and corporate bond exposures. Since GS-FPIs are limited to sovereign debt, SEBI has deemed this requirement unnecessary in their Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and resident Indians will now be allowed to be constituents of GS-FPIs. In a procedural relief, the deadline to intimate SEBI about material changes in GS-FPI setup has been extended from 7 days to 30 days. This provides more flexibility to investors while still ensuring regulatory oversight. SEBI clarified that both existing and new FPIs seeking to be classified as GS-FPIs will be subject to conditions that the regulator may specify from time to time. The capital market regulator approved several other proposals in its board meeting, offering significant relief to startup founders, alternative investment funds (AIFs), and listed entities planning qualified institutional placements (QIPs). The SEBI board cleared a proposal allowing startup founders to retain or exercise Employee Stock Option Plans (ESOPs) granted at least one year before the Initial Public Offering (IPO) filing, even after being classified as promoters. Under current norms, promoters cannot hold or be granted share-based benefits such as ESOPs at the time of filing the Draft Red Herring Prospectus (DRHP), forcing them to liquidate these holdings before the IPO. The new proposal addresses the long-standing grievance of startup founders adversely impacted by this restriction, offering a significant policy relaxation that supports founder retention and motivation during the IPO journey. In a move to ease capital-raising by listed firms, SEBI approved amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, simplifying and streamlining placement documents for QIPs. The changes build on earlier efforts to simplify disclosures for rights issues and are designed to reduce duplication of information already available in the public domain. The amendments allow listed entities to make summarized and concise disclosures in QIP documents, enabling quicker and more efficient capital also cleared a long-awaited proposal to allow AIFs to offer co-investment opportunities through a dedicated Co-Investment Vehicle (CIV) under a separate scheme within the AIF structure. This addresses an industry demand that seeks to expand the investment horizon for institutional investors without diluting protections for main scheme participants. In addition, AIF managers will now be permitted to provide advisory services to any investor, regardless of whether their fund has invested in the relevant listed securities. Reversing its earlier decision from December 2024, SEBI has decided not to mandate the hiving off of non-regulated activities carried out by SEBI-registered entities into separate legal entities. The revision comes after internal reviews and industry said angel investors must now qualify as Accredited Investors (AIs). Accreditation involves independent verification of investor status with thresholds updated to reflect current market realities. 'Board approved that Angel Investors will now need to be Accredited Investors (AI). Note that in AI, there is independent verification of investor status, with thresholds that update to the current market levels,' SEBI board added 'In addition, the Board approved a proposal to amend ICDR so that AIs will be included as Qualified Institutional Buyers (QIBs) for the limited purpose of investments into Angel Funds only. This would allow Angel Funds to show opportunities to a wider pool of eligible investors, while staying in conformity with Companies Act,' SEBI added. SEBI also amended ICDR regulations to classify AIs as Qualified Institutional Buyers (QIBs) for the limited purpose of investing in Angel Funds. This change is expected to broaden the eligible investor base for Angel Funds while maintaining regulatory integrity under the Companies Act. (ANI)
India.com
18-06-2025
- Business
- India.com
SEBI Likely To Discuss Reforms On Startup ESOPs, PSU Delisting, Bond Investment Norms
Mumbai: The Securities and Exchange Board of India (SEBI) is holding its board meeting on Wednesday, and some important decisions related to startups, public sector companies, and foreign investors are likely to be on the agenda. One of the key topics expected to be discussed is whether startup founders can continue to hold employee stock options (ESOPs) after their company goes public. Currently, once a startup founder is classified as a promoter during the IPO process, they are no longer allowed to receive ESOPs. However, SEBI believes the rules are not clear about whether founders who were granted ESOPs before being labeled promoters can still exercise their stock options -- both vested and unvested -- after the IPO. This is especially relevant for many new-age tech startups, where founders often take ESOPs instead of salaries in the early days. As these companies raise funds from investors, the founders' shareholding gets diluted. To address the confusion, SEBI had issued a consultation paper on March 20, 2025, seeking public opinion on this issue. The regulator is also considering introducing a one-year 'cooling-off' period between the grant of ESOPs and the filing of IPO papers. SEBI believes giving ESOPs just before an IPO could be misused. Another big topic on the table is voluntary delisting of public sector undertakings (PSUs). SEBI may look at a new framework allowing PSUs to exit the stock market if the government holds more than 90 per cent of the company's shares. Many PSUs have low public shareholding, poor financials, or outdated business models -- making their continued listing less meaningful. A discussion paper on this issue was floated in May this year. The board is also likely to discuss easing compliance rules for foreign portfolio investors (FPIs) who invest only in Indian Government Bonds (IGBs). This move could make it simpler for long-term foreign investors to enter the Indian debt market through routes like the Voluntary Retention Route (VRR) and the Fully Accessible Route (FAR). Lastly, SEBI may take up a proposal to simplify disclosure norms for qualified institutions placements (QIPs). The new proposal could require companies to disclose only the information that is relevant to the issue, instead of following the broader and more detailed disclosure rules currently in place under the Issue of Capital and Disclosure Requirements (ICDR) regulations.
Time of India
18-06-2025
- Business
- Time of India
Sebi board meeting today. 5 key proposals on the agenda
Here's what to expect: 1) ESOP clarification: Live Events 2) Cooling-off period for IPOs: 3) PSU delisting: 4) Compliance for FPIs investing in IGBs: 5) QIP disclosure norms: (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Securities and Exchange Board of India (Sebi) will hold its board meeting today, where it may discuss whether startup founders should be allowed to retain employee stock options even after their companies go public. The agenda could also include permitting voluntary delisting of public sector companies, among other current regulations, startup founders must be classified as promoters at the time of filing IPO documents. Once labeled promoters, they are no longer eligible to receive Employee Stock Options (ESOPs).However, Sebi believes the existing rules do not clearly specify whether founders—who received ESOPs before being classified as promoters—can exercise their vested and unvested options after the of many new-age tech startups often receive ESOPs instead of salaries in the early stages to align their interests with shareholders. But as these companies raise capital from external investors, founders' stakes tend to get March 20, 2025, Sebi released a consultation paper seeking public feedback on the need to clarify whether ESOPs granted before filing the Draft Red Herring Prospectus (DRHP) can be exercised if the founder is later classified as a is also considering introducing a one-year cooling-off period between the grant of ESOPs and the filing of IPO papers, according to an ET report. The regulator believes issuing share-based benefits shortly before an IPO could be open to board, chaired by Tuhin Kanta Pandey, may also discuss creating a separate framework to allow public sector undertakings (PSUs) to voluntarily delist from stock exchanges—if the government holds more than 90% proposal stems from Sebi's view that some PSUs suffer from thin public float, weak financials, or limited future prospects due to outdated products or strategic asset May, Sebi floated a discussion paper proposing such a carve-out mechanism for PSU delisting where the government or promoter group owns at least 90% of may consider simplifying compliance requirements for Foreign Portfolio Investors (FPIs) investing solely in Indian Government Bonds (IGBs) via the Voluntary Retention Route (VRR) and the Fully Accessible Route (FAR). The move aims to attract more long-term bond investors to the Indian debt market, sources board could also take up a proposal to rationalise the disclosure requirements for Qualified Institutions Placement (QIP) documents. The plan would limit disclosure to only information relevant to the issue, people familiar with the matter said. Currently, issuers must adhere to detailed disclosure norms under the Issue of Capital and Disclosure Requirements (ICDR) regulations.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Hans India
18-06-2025
- Business
- Hans India
Sebi likey to take up key reforms today
Mumbai: Markets watchdog Sebi's board is likely to discuss a series of regulatory reforms during its upcoming meeting under the chairmanship of Tuhin Kanta Pandeyon Wednesday. One of the key agenda items is the simplification of rules and regulatory compliance for Foreign Portfolio Investors (FPIs) investing exclusively in Indian Government Bonds (IGBs) through the Voluntary Retention Route (VRR) and the Fully Accessible Route (FAR). This move is aimed at attracting more long-term bond investors to the Indian market, people aware of the development said. Currently, foreign investors can invest in Indian debt through three routes – General, VRR, and FAR. The VRR and FAR routes are comparatively liberal, as they allow investments without many of the restrictions, such as security-wise or concentration limits that apply under the General route.
Finextra
17-06-2025
- Business
- Finextra
MarketAxess activates first fully electronic trading solution for Indian Government Bonds
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced the launch of the first fully electronic trading solution for Indian Government Bonds (IGBs) for Foreign Portfolio Investors (FPIs). 0 International investors will, for the first time, be able to trade IGBs electronically alongside 29 other local currency bond markets already available via the MarketAxess trading platform. The new solution will provide both FPIs and market makers with an enhanced trading experience throughout the entire trade lifecycle. 'We're delighted to be the first platform to be able to bring this new trading capability to international investors. By integrating directly with the NDS-OM system operated by the Clearing Corporation of India Limited, our solution is designed to increase efficiency across the entire trading workflow, from pre-trade allocation to post-trade reporting,' said Riad Chowdhury, Head of Asia-Pacific at MarketAxess. 'Global emerging markets are well-positioned for increased innovation and international investment—as evidenced by India's recent addition to notable global EM indices—and we are excited to support both with this launch.' In 2024, MarketAxess reported annual trading volumes of nearly $860bn for its Emerging Markets business. MarketAxess has also been recognized as the 'Best Secondary Market Trading Platform for Emerging Market Bonds' by GlobalCapital for the past two years.
