The Sebi board met today in Delhi to take steps to broaden the debt markets and give a boost to the Rajiv Gandhi Equity Savings Scheme (RGESS), reports Nayantara Rai of CNBC-TV18.
For RGESS, the Sebi board decided to amend certain mutual fund regulations to give a fillip to the government scheme for the capital markets.
After getting feedback from various Asset Management Companies (AMCs) it has decided to double the initial opening offer from 15 days to 30 days and it has also increased the timeline from 5 days to 15 days, in which AMCs have to dispatch statement of accounts, allot units, refund investors for all.
With regards to debt markets, the finance minister spoke about the need to broaden the debt markets, do away with sub-limits etc. In the meet, it was decided to come out with comprehensive guidelines for Non Convertible Debentures (NCDs) and the method in which it should be listed. The board also gave approval for a new product in the debt market with regards to perpetual non-cumulative preference shares. This will be mainly for banks that want to raise tier-I capital.
Interestingly, at a time when Sebi is at war with Sahara, it is also coming out with guidelines on how exactly to regulate the debt markets. So, it is going to tell all debt issuers to now start filling prospectus with the market regulator.
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