Mumbai: The board of Securities and Exchange Board of India (Sebi) is set to meet on Monday to discuss several important proposals related to the stock market.
The meeting will cover changes aimed at making trading easier for investors, improving rules for market intermediaries, and increasing transparency in the system.
Relief for Foreign Investors
One of the main proposals is to ease fund settlement rules for Foreign Portfolio Investors (FPIs).
At present, FPIs must settle each trade separately, even if they buy and sell shares on the same day. This means they need to arrange extra funds for every transaction.
Sebi is now considering allowing “netting of funds”. This will let FPIs adjust their buy and sell trades on the same day and pay only the final amount.
This step is expected to reduce costs, improve efficiency, and make trading smoother, especially during high-activity periods like index rebalancing.
Changes in Rules for Intermediaries
The board will also discuss changes in rules for market intermediaries like brokers and other financial entities.
One key proposal is to update the “fit and proper person” criteria. Sebi may remove the rule that treats the start of winding-up proceedings as disqualification. Instead, only a final order will be considered.
The regulator also plans to clearly include the right to a hearing in its rules, ensuring fairness and transparency in decision-making.
Focus on REITs, InvITs and Governance
Sebi will also review proposals to make it easier to do business in sectors like REITs and InvITs.
In addition, the board will examine a report by a high-level panel on conflict of interest and transparency. The report suggests stricter disclosure rules and a “zero-tolerance” approach to conflicts involving top Sebi officials.
Leadership Context
This will be the fifth board meeting under Sebi Chairman Tuhin Kanta Pandey, who took charge in March 2025.
The decisions taken in this meeting could have a significant impact on how India’s financial markets function in the near future.
