Market regulator Sebi on Tuesday approved stricter norms related to independent directors, reduced the minimum subscription amount for REITs and InvITs and decided to introduce a framework for accredited investors along with other measures.
To provide easy access to investors to participate in public/rights issues by using various payment avenues, Sebi has also decided to permit banks, other than scheduled banks, to act as a banker to such issues.
The new norms will be effective from January 1, 2022. Under the proposed changes, a listed company will be required to disclose the resignation letter of an independent director and there will be a one year cooling period for an independent director transitioning to a whole time director in the same company/ holding/ subsidiary/ associate company or any company belonging to the promoter group. Further, the process to be followed by the Nomination and Remuneration Committee (NRC) while selecting candidates for appointment as independent directors would become more transparent.
These include enhanced disclosures regarding the skills required for appointment as an independent director and how the proposed candidate fits into that skillset. Continuing efforts to deepen the market for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), Sebi has decided to reduce the minimum subscription amount and trading lot size for them. The minimum application value will be of Rs 10,000- 15,000 and the trading lot will be of one unit for REITs and InvITs.
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