The Securities & Exchange Board of India (SEBI) is set to convene for a board meeting on June 27, focusing on crucial regulatory changes. One key agenda item involves tightening eligibility criteria for stocks to participate in derivatives trading.
SEBI aims to ensure adequate liquidity and trading interest in derivative instruments to prevent market manipulation.
Regulation of Financial Influencers
Another significant discussion point is the regulation of financial influencers (finfluencers) who provide investment advice on social media platforms. With the surge in retail investor participation, SEBI proposes measures to curb misleading information by urging brokers and mutual funds to cease collaborations with unregistered influencers.
Simplification of Delisting Rules
The regulatory body also expected to consider simplifying rules for companies seeking delisting from stock exchanges. This move aims to streamline the process and potentially make it more accessible for companies to delist from the exchanges.
International Private Equity and Venture Capital Valuation Guidelines
Additionally, SEBI may approve the application of the International Private Equity and Venture Capital Valuation Guidelines (IPEV) for valuing unlisted securities held by Alternative Investment Funds (AIFs). This measure could enhance transparency and standardize valuation practices across the industry.
The upcoming SEBI board meeting underscores efforts to strengthen market integrity, protect retail investors, and enhance regulatory frameworks in India’s capital markets.
