Key decisions on new delisting guidelines, AIF, NGOs, and index providers were made during the SEBI board meeting

 Key decisions on new delisting guidelines, AIF, NGOs, and index providers were made during the SEBI board meeting

SEBI permits NGOs to raise funds in a flexible manner by using social stock exchanges and by assisting small and medium-sized REITs.

Due to a paucity of data, market regulator SEBI declined to adopt the proposed delisting restrictions on Saturday. In addition, the SEBI board declared its conclusions regarding the operation of alternative investment funds (AIF), rules governing index providers, and fundraising by non-governmental organizations.

During its meeting on Saturday in Mumbai, the board of the Securities and Exchange Board of India (Sebi) made these decisions. The SEBI board made the following important decisions at their meeting.

Key points from the SEBI Board meeting

Rules governing index providers

A new regulatory framework for index providers was unveiled by the market regulator. In order to guarantee accountability and transparency in the management and governance of financial benchmarks in the securities market, a framework will be established.

NGOs' flexibility in collecting funds

The board also authorized giving non-profit organizations (NPOs) more freedom when it comes to using the social stock market to raise money. 

The SEBI board recommended lowering the minimum issue size from Rs. 1 crore to Rs. 50 lakh in cases of public issuance of Zero Coupon Zero Principal Instruments (ZCZP) by NPOs on SSE in order to increase NGO fundraising on the Social Stock Exchange. Additionally, the minimum application size was lowered from ₹2 lakh to ₹10,000. 

In addition, SEBI permitted NGOs to include their previous social impact report in the document used for fundraising. According to a press release from SEBI, more NGOs will be able to register and raise funds by issuing and listing ZCZP on SSE, which would be made possible by allowing companies registered under section 10(23C) and section 10(46) of the Income Tax Act.

Support for Small and Medium-Sized REITs (SM REITS)

SEBI will oversee online platforms that provide fractional ownership of real estate assets. Additionally, as stated in the SEBI news release, they will be registered under the framework for small and medium reits.

The Securities and Exchange Board of India (SEBI) also announced in a press release after its quarterly board meeting that beginning in September 2024, all new investments made by alternative investment funds would be held in demat form.