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Securities and Exchange Board of India (SEBI)

A. Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2017

On 12th January 2017, SEBI has issued a notification amending the SEBI (Foreign Portfolio Investors) Regulations, 2014. Under the said notification following changes have been made:

  1. Regulation 21 - Investment restrictions:
    • Sub-regulation 1(a) - for the words “Securities in the primary and secondary markets including shares”, the word “Shares” shall be substituted
    • Sub-regulation 1(a) - after the word “India”, the words and symbol “, through primary and secondary markets”, shall be inserted

    Accordingly, new Clause 21 (1) (a) to be read as follows:

    Shares, debentures and warrants of companies, listed or to be listed on a recognized stock exchange in India through primary and secondary markets

  2. Regulation 21 – Investment restrictions:

    Under Sub-regulation (4) (e): which talks about exceptions to the provision of transaction of business in securities by a foreign portfolio investor shall be only through stock brokers registered by the Board:

    (1) after sub-clause (vii) the following sub-clauses shall be inserted, namely,- 

    “(viii) transactions by Category I and II foreign portfolio investors, in corporate bonds, as may be specified by the Board;

    (ix) transactions on the electronic book provider platform of recognized stock exchanges;”

    (2) existing sub-clause (viii) shall be re-numbered as sub-clause (x);

B. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2017

Vide its notification dated 15th February 2017, SEBI has issued the above-mentioned regulations to further amend the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as follows:

Under Regulation 37 titled Draft Scheme of Arrangement &Scheme of Arrangement:

After sub-regulation (5), the following sub-regulation and proviso may be inserted, namely,-

“(6) Nothing contained in this regulation shall apply to draft schemes which solely provide for merger of a wholly owned subsidiary with its holding company: Provided that, such draft schemes shall be filed with the stock exchanges for the purpose of disclosures

C. Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2017

SEBI vide its notification dated 15th February 2017 has issued the above-mentioned regulations to further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as follows:

  1. Regulation 70 – related to certain provisions not applicable to preferential issue of equity shares has been amended to align it with the relevant provisions of Companies Act, 2013, Insolvency and Bankruptcy Code, 2016 and Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
  2. Following new regulations have been added:

    • Regulations 111A - Liability for contravention of the Act, rules or the regulations
    • Regulations 111B – Failure to pay fine

D. Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2017

Vide its notification dated 15th February 2017, SEBI has further amended the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as follows:

  1. Following definitions have been added in regulation 2:

    “(mo) “InvIT” or “Infrastructure Investment Trust” shall have the meaning assigned in clause (za) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014;”

    (sb) “REIT” or “Real Estate Investment Trust” shall have the meaning assigned in clause (zm) of sub-regulation 1 of regulation 2 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014;”

  2. Seventh schedule has been amended to include limits regarding investment in units of REITs and InvITs

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