The Securities and Exchange Board of India (SEBI) plans to bring in a host of reforms in various segments including primary market, commodities and foreign investors among others. The board of the capital market regulator met in New Delhi on Saturday and laid out the roadmap for reforms for financial year 2017-18.
The regulator plans to reduce the listing time gap by bringing down the public issue timeline from the existing requirement of T+6. In other words, shares of a company are currently listed within six days from the day of the issue closure.
The regulator also plans to allow institutional participation in the commodity derivatives markets in a phased manner. Further, it will work towards integration between the commodity spot market and the derivatives segment.
The regulator will also initiate consultation with various stakeholders and also design a system of risk-based supervision for commodity brokers.
Among other things, the watchdog will also set up a cyber security lab for the the securities market and set up a facility for online registration of intermediaries. It also plans to allow listing and trading of securitisation receipts issued by Assets Reconstruction Companies (ARC).
As part of its attempts towards the 'Ease of Doing Business' initiative, SEBI will introduce a common application form for registration, opening of bank and demat accounts, and issue of PAN for Foreign Portfolio Investors (FPIs).
Stock exchanges, depositories, clearing corporations
In what could be a major reform for institutions like exchanges, depositories and clearing corporations, the regulator plans to review the regulations pertaining to such Market Infrastructure Institutions (MIIs).
To begin with, the board of the regulator approved the proposal for comprehensive review of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and SEBI (Depositories and Participants) Regulations, 1996 by releasing a consultation paper and seeking public comments.
Complaint against NSE
The SEBI board took note of the memorandum related to the colocation facility of the National Stock Exchange (NSE) and the examination carried out by the regulator under the guidance of its Technical Advisory Committee (TAC).
"As advised by SEBI, NSE's Board has also undertaken an independent forensic audit on the matter. The Board also took note of steps taken by SEBI in consultation with TAC to strengthen the exchange’s trading infrastructure in the areas namely, fair and transparent data dissemination process, tools to monitor service quality of data feeds, mechanism to manage system load in a fair manner, direct connectivity between colocation facilities of exchanges, etc. The concerns related to systems and processes at the exchange arising out of examinations are being addressed in consultation with TAC and NSE's Board," said a statement issued by SEBI