New Reforms To Ease Trading

The Securities and Exchange Board of India has lined up new reforms which are intended to make it easier for the banks to turn bad loans into equity. This is believed to bring in fresh investments and loans for new start-ups, young entrepreneurs and even the big players in the market.
To help young entrepreneurs raise funds, Sebi announced the setting up of new avenues such as Institutional Trading Platform (ITP) and crowd-funding and will develop this concept further to make its enforcement process more efficient.
It has also cleared the norms for the stock market listing of the Municipal Bonds which will aid in developing better smart cities and bring more public funding. This is relatively a new type of funding model and it will work as an Acid Test for the rest to come in the future.
In order to curb “Insider Trading” and leaking of price-sensitive information, Sebi has made it mandatory for companies to make the decisions of the Board meetings public within 30 minutes of the meeting.
Finance minister Arun Jaitley who also addressed the board meeting claimed the setting up of a global financial hub in India- International Financial Service Centres (IFSC) like the one in Singapore and Dubai. First IFSC in India will be set up in Gujarat called the Gujarat International Finance Tech-City.
It has also eased the norms for managing domestic funds pooled in the offshore markets. It has eased the existing “20-25” rule, according to which a minimum of 20 investors with 25% of individual capital is required. This will help the investors manage their offshore investments effectively and also garner more business”, said Sebi.
In his first post-budget meeting with the Sebi board, the finance minister Arun Jaitley also discussed the trends in the investments by foreign institutional investors in the securities markets. “They said about capacity building at Sebi, both in terms of ability to aquaint with the subjects and other infrastructure requirements”, Jaitley said at the meeting.

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