The Securities and Exchange Board of India (SEBI) on Wednesday approved wide-ranging reforms aimed at simplifying the ease of doing business and increasing transparency in working of companies.
Among other key proposals, the board cleared a recommendation regarding a framework to reduce the compliance burden of companies with large debts by raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to Rs 5,000 crore from the current Rs 1,000 crore.
Another of its approvals included a proposal to simplify the offer document by companies seeking to raise funds.
“The proposal to simplify the offer document summary will enable investors to make informed decisions,” it said in a release.
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Besides reviewing recommendations of a high-level panel on conflict of interest and disclosures of assets by its senior officials, it also cleared a proposal to enhance mutual fund transparency by breaking down Total Expense Ratio (TER), as per a release.
The market regulator also allowed debt issuers to offer incentives in public issues to certain categories of investors.
This is the fourth board meeting chaired by Sebi chief Tuhin Kanta Pandey, who assumed office on March 1.
The board meeting also included the approval of a proposal to separate statutory charges like Securities Transaction Tax (STT), stamp duty, and GST from the Total Expense Ratio (TER) to enhance transparency for investors by providing a clearer understanding of all costs involved.
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