A regulatory framework for index providers has been adopted by the Securities and Exchange Board of India (SEBI) board with the aim of promoting accountability and transparency in the management and governance of financial benchmarks in the securities market.
According to a statement from the market regulator on Saturday, the rules will provide a framework for the registration of index providers that license “Significant Indices,” which will be notified by SEBI based on objective criteria.
Only “Significant Indices” will be subject to the regulatory framework that complies with the IOSCO Principles for Financial Benchmarks, according to the statement.
These were some of the decisions made by the SEBI board during this meeting.
During its 203rd meeting, the board also authorized the social stock exchange’s framework’s flexibility. It lowered from Rs 1 crore to Rs 50 lakh the minimum issuance size of zero coupon zero principal securities by non-profit organizations.
The board spoke on delisting guidelines as well.
“It (delisting norms) was discussed in the board meeting,” SEBI Chairperson Madhabi Puri Buch stated during a press conference.The board advised us that it could be difficult to draw any meaningful conclusions from the data set since, even over the course of five years, the number of delisting petitions has been rather modest. Because the data set was really rather little, the board has advised us to go back and do more data investigations and stakeholder discussions in order to have a better understanding of this (delisting). It was not done this time for that reason.