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5 key things to expect from Sebi board meeting today


Board members of the market regulator Securities and Exchange Board of India (Sebi) are meeting on Thursday in their last congregation of 2017, where they are expected to discuss some crucial issues, including a clause that will require a company to disclose any loan default within 24 hours.

Going by the media reports speculating on the Sebi meeting, here are five key things one can expect to come out from today's meeting.

The market regulator is widely expected to mandate all the listed entities to start disclosing the first instance of a loan default to a bank or financial institution within one working day, ETNow reported quoting sources. Sebi is likely to tighten the noose around defaulters with such mandatory disclosures coming into effect from April 1, 2018.

Some reports say Sebi is likely to relax the entry norms for foreign portfolio investors (FPIs) willing to invest in the Indian markets.

The market regulator may also allow the listing of security receipts issued by an asset reconstruction company (ARC) on the exchange platform. Security receipt, in market parlance, means a receipt or other security issued by a securitisation company or reconstruction company. This is expected to enhance capital flows into the securitisation industry, and particularly be helpful to deal with bank non- performing assets (NPAs).

Sebi may also consider putting a 10 per cent cross-shareholding cap on mutual funds, media reports said. The new measure may have an impact on the shareholding pattern of UTI Asset Management Company (AMC). State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB) and Life Insurance Corporation (LIC) have their own mutual funds, and at the same time they hold 18.24 per cent stake each in UTI AMC.

The market regulator is expected to apprise its board about the probe into circulation of unpublished price sensitive information about various listed companies through WhatsApp messages and other private social media groups.

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