The Securities and Exchange Board of India (SEBI) approved amendments to certain key regulations in its board meeting held on 23 November 2016. These amendments have been proposed to relax investment norms and develop the start-up environment in India. This update provides a snapshot of these proposed amendments and briefly examines the implications of these amendments.
- The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) are proposed to be amended to address potential corporate governance issues arising out of compensation agreements of promoters, directors and key managerial personnel of listed companies.
- In line with ongoing measures to encourage start-ups in India, and to develop the market for alternative investments, SEBI has approved amendments to the SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations).
- To enhance the investor base for unlisted debt securities and securitized debt instruments, amendments to the SEBI (Foreign Portfolio Investors) Regulations, 2014 (FPI Regulations) are proposed.