Sebi Introduces Settlement Scheme and AIF Reforms

Markets regulator Sebi has announced a new settlement scheme for stock brokers involved in the NSEL platform. This initiative aims to swiftly resolve pending cases. Additionally, Sebi has approved reforms for Alternative Investment Funds to boost investments through co-investment schemes, addressing previous challenges under PMS regulations.

The Securities and Exchange Board of India (Sebi) unveiled a much-anticipated settlement scheme aimed at resolving long-standing disputes involving stock brokers trading on the National Spot Exchange Ltd (NSEL). This initiative offers an expedited resolution opportunity for brokers confronting enforcement actions from the regulator.

Parallelly, major reforms were approved to invigorate investment activity through Alternative Investment Funds (AIFs), including allowing Category I and II AIFs to initiate co-investment schemes. This move aims to simplify the investment process and alleviate challenges unlisted companies faced under previous Portfolio Management Services routes.

Moreover, the Sebi board ratified a proposal mandating dematerialization for specific shareholders before an IPO filing, a step forward in minimizing inefficiencies and risks tied to physical share certificates. These strategic measures are set to streamline operations and reinforce market security.

(With inputs from agencies.)