Why in news? SEBI pushes norms to ensure better disclosures and boost transparency.

Highlights:

• SEBI moved to improve disclosure norms and transparency by mandating that large 100 listed companies must confirm or deny price-sensitive market rumours, and in the case of material board decisions disclose them to exchanges within 30 minutes.
• The markets regulator also made it mandatory for upstreaming of clients’ funds by stock brokers and clearing members to clearing corporations, a move aimed at protecting retail investors’ funds.
• SEBI has now allowed Private Equity (PE) firms to own stakes in Asset Management Companies (AMCs) that operate mutual funds.
• The regulator has decided to do away with the practice of individuals having permanent seats on boards of listed companies.
• To bolster corporate governance at listed entities, periodic shareholders’ approval will be required for any special right granted to a shareholder of a listed entity to address the issue of the perpetuity of special rights.
• To strengthen the investor grievance redressal mechanism in the securities market, Sebi has decided to operationalise the online dispute resolution mechanism for investors across registered intermediaries and regulated entities.
• A listed entity can announce a bonus issue of shares, only after obtaining approval from the stock exchanges for listing and trading of all the pre-bonus securities issued by it. The bonus issue should be made only in dematerialised form.

About SEBI

• The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India.
• It was established on 12 April 1988 as an executive body and was given statutory powers on 30 January 1992 through the SEBI Act, 1992.