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In its consultation paper, Sebi proposed categorising material changes notified by FPIs into two groups to set timelines for reporting such changes. Type I includes changes that require FPIs to seek fresh registration, or which affect any privileges or exemption available to such foreign investors and Type II includes all other material changes.
The regulators stated that the decision to extend the timeline for implementing LODR rules has been taken due to ongoing industry-standard finalisation and required amendments to market norms. The rule is aimed at strengthening the corporate governance of listed entities.
The Securities and Exchange Board of India has decided on a new system that will be in addition to the existing one with respect to OFS for companies' employees. Under the new system, OFS to employees would be on T+1 day along with the retail category under a new category 'Employee'. According to Sebi, for employee OFS, a certain number of shares should be reserved for the staff and the same should be mentioned in the OFS notice to the stock exchanges by the promoters.
A mule account is basically a trading account maintained with a stock broker or a dematerialized account or bank account linked with such trading account in the name of a person, where the account is effectively controlled by another person, whether or not the consideration for transactions in the account are paid by such other person.
Currently, voluntary blocking/freezing of demat accounts is already available for investors, and this facility is now proposed to be offered for their trading accounts also, Sebi said.