SEBI vide Press Release No. 35/2017 on Wednesday, 21st June, 2017 released decisions taken in its Board Meeting held on 21st June, 2017. The following are the major decisions taken:
- Relaxations from preferential issue requirements and open offer obligations are now also available for new investors acquiring shares in distressed companies through Strategic Debt Restructuring (SDR) scheme in terms of the guidelines of RBI subject to approval by the shareholders of the companies by special resolution and lock-in of their shareholding for a minimum period of three years. Also the same has been extended to lenders under other restructuring schemes.
- Exemption from open offer obligations under the SEBI (SAST) Regulations, 2011, for acquisitions pursuant to resolution plans approved by NCLT under the Insolvency and Bankruptcy Code, 2016.
- In case of an IPO, relaxed rules for lock-in provision has been extended to Category II AIFs
- Public consultation process before implementing changes to SEBI (Foreign Portfolio Investors) Regulations, 2014, to rationalize various foreign portfolio investment routes, simplify the procedures to attract more foreign funds
- Levy a “Regulatory Fee” of US$1000 on each ODI subscriber, to be collected and deposited by the ODI issuing FPI of such ODI subscriber, once every three years, starting from April 1, 2017. SEBI shall amend SEBI (FPI) Regulations, 2014 to implement the decision taken by the Board.