Aiming to deepen capital markets, regulator
Sebi on Friday announced measures to attract larger number of new investors to equities and also simplified the registration process for brokers.
At a meeting held here this evening, the Sebi board also approved opening of six new local offices, including one in Srinagar, and the steps for enhancing market surveillance capabilities.
To bring in more transparency in raising of funds through non-convertible preference shares, Sebi also announced a new set of regulations to govern the issuance and listing of such securities. The new set of rules would also help banks to raise funds through this route.
To attract new investors to the equities market, Sebi board also decided to extend the initial offering period for mutual fund schemes launched under RGESS (Rajiv Gandhi Equity Savings Scheme), which provides tax benefits for first time investors.
Prior to its meeting, the Sebi board was addressed by Finance Minister P Chidambaram, who was told about the future agenda of the market regulator and the steps being taken by it for the benefit of markets and investors.
The Sebi board also approved budget for financial year 2013-14 with focus on investor education and awareness, development of the markets, enhancing market surveillance capabilities and improving the access of investors to the regulator.
"In this regard, the Board approved the opening of six more local offices at Ranchi, Raipur, Panaji, Shimla, Dehradun and Srinagar," Sebi said in a statement after the board meeting.
Simplifying the procedural requirements for stock brokers, Sebi also decided to introduce common registration certificates for brokers across different market segments.
The proposal, once implemented, would do away with the current system that require stock brokers to get separate registration certificates from Sebi for every market segment they trade in.
"With a view to simplifying and rationalising the registration requirement, the board decided to amend the regulations for stock brokers so that there may be one certificate of registration per stock exchange for a stock broker," Sebi said.
Presently, a stock broker is required to get separate certificates of registration for operating in different segments of a stock exchange such as equity, equity derivatives, currency derivatives.
Currently, separate registrations are also needed for each category like trading member, trading cum self clearing member and a professional clearing member.
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