SEBI proposes stricter rules for listed companies to strengthen corporate governance
The Securities and Exchange Board of India (SEBI) has proposed new rules to improve corporate governance at listed companies.
Markets regulator Sebi on Wednesday relaxed takeover norms for acquisition of stressed assets to help the government and the RBI in their efforts to tackle bad loans.
After a board meeting here on Wednesday, Sebi Chairman Ajay Tyagi said the regulator has decided to ease norms for acquisition of distressed assets of listed companies.
Advertisement
The board also approved a proposal to tighten the rules for participatory notes through imposition of a regulatory fee on issuers of such instruments.
Advertisement
Tyagi, however, said there is no proposal to completely ban these instruments as they can be useful for new foreign investors looking to test the Indian markets.
“Sebi would want foreign investors to come directly but P-notes also have their usefulness,” Tyagi told reporters here.
Besides, Sebi would issue discussion paper for easier registration of foreign investors. Another discussion paper would be floated for ways to help develop equity derivatives markets.
Advertisement
