JOIN USSebi unveils reforms to woo investors
Unveiling a raft of reform measures, Sebi on Wednesday approved options in commodity derivatives, unified licence for brokers, mutual fund investments through digital wallets, stricter public offer norms and enhanced safeguards to curb illicit fund flows.
The first board meeting of regulator Sebi under the chairmanship of Ajay Tyagi also decided to relax preferential allotment norms for scheduled banks and put in place a new framework to deepen the corporate bond market.
These measures are expected to provide a fillip to the domestic markets, which has seen robust trends in recent weeks.
The agenda-heavy meeting held here saw the watchdog giving its green light to the long-awaited move of permitting options trading in commodity derivatives.Announcing the decision aimed at enhancing liquidity, Tyagi said it will be implemented “quickly” as commodity derivatives market is a high priority area.
However, he indicated that it might take some more time before institutional investors, including banks, are permitted in commodities market.
As it works to bring more synergy between different market segments, the watchdog has decided to put in place a unified licence for brokers and clearing members to operate in commodity derivative as well as equity markets.
In a major investor-friendly move along with promoting digitisation, mutual fund investments up to Rs 50,000 can be made through electronic or digital wallets.Furthermore, mutual funds and asset management companies can provide instant online access facility to resident individual investors in liquid schemes.
The decisions are part of larger initiatives to channelise household savings into the capital market as well as promote digital payments in the mutual funds industry.