Sebi relaxes profitability criteria for mutual funds sponsors The market regulator also did away with minimum promoters’ contribution and subsequent lock-in requirements for issuers making a a follow-on public offering
The Securities and Exchange Board of India (Sebi) on Wednesday relaxed the profitability criteria for the sponsors of mutual funds apart from ringfencing the assets and liabilities of mutual fund schemes. The market regulator also did away with the minimum promoters’ contribution and the subsequent lock-in requirements for issuers making a a follow-on public offering (FPO).
These decisions were taken at its board meeting on Wednesday. It also approved new shareholding norms for listed entities who go through the corporate insolvency resolution process (CIRP).
The Securities and Exchange Board of India (Sebi) on Wednesday paved the way for fintech companies and other start-ups to set up asset management companies (AMCs) by tweaking the eligibility criteria. The market regulator also tightened the shareholding norms for companies relisting after undergoing the corporate insolvency resolution process (CIRP) to ensure fair price discovery.
Sebi said an entity would be allowed to sponsor a mutual fund even if it didn’t fulfil the profitability requirement. However, the entity would need to have a net worth of Rs 100 crore. At present, MF sponsors need to have a profitability track record and are required to maintain a net worth of Rs 50 crore.
Cos under CIRP: Shareholding norms revised
Sebi board meet: Regulator also paves way for fintechs to set up mutual funds. December 17, 2020 3:06:41 am
The regulator, in its board meeting, decided that even sponsors that don’t meet the profitability criteria can apply for mutual fund (MF) licenses.
The Securities and Exchange Board of India (Sebi) on Wednesday revamped the shareholding norms for companies relisting after undergoing the corporate insolvency resolution process (CIRP) to ensure fair price discovery. The markets regulator also paved the way for fintech companies and other startups to set up asset management companies (AMCs) or mutual funds by revising the eligibility criteria.
Sebi tweaks minimum public shareholding norms for listed companies under insolvency resolution process
Another change for listed companies under resolution plan is that the lock-in on equity shares allotted to the resolution applicant will not be applicable until 10 percent pubic holding is achieved December 17, 2020 / 11:43 AM IST
The capital market regulator Securities and Exchange Board of India (Sebi) on November 16 in its board meeting made some changes in the minimum public shareholding norms for listed companies going through Corporate Insolvency Resolution Process (CIRP).
Sebi asked companies that continue to remain listed as a result of implementation of the resolution plan to have at least 5 percent public shareholding at the time of beginning of trading on the stock exchange/s. Currently, there is no such minimum requirement for companies.