Mar 21, 02:53 PM

SEBI Proposes Regulatory Changes, Including Relaxation of Offer-for-Sale Norms, ESOP Adjustments, and Rs 1,000 Minimum Application Size

The Securities and Exchange Board of India (SEBI) has proposed several regulatory changes aimed at enhancing market efficiency and protecting investors. Notably, SEBI plans to relax offer-for-sale norms and extend the exemption of the one-year holding period for certain transactions. Additionally, the regulator is considering modifications to Employee Stock Ownership Plan (ESOP) norms to assist founders of IPO-bound companies in exercising their options. SEBI also announced a reduction in the minimum application size for issuances on social stock exchanges, lowering it from Rs 10,000 to Rs 1,000. Furthermore, the regulator has eased 'skin-in-the-game' rules for mutual fund managers and other designated employees, effective April 1. In an effort to combat investment fraud, SEBI has mandated that intermediaries register with social media platforms such as Google and Meta for advertising purposes. This initiative is part of a broader strategy to curb misinformation, which has already seen the removal of over 70,000 misleading online posts and accounts since October 2024. SEBI is also consulting on potentially raising the investment threshold for long-only investors from Rs 25,000 crore to Rs 50,000 crore to ease compliance burdens.

#SEBI #Employee Stock Ownership Plan #Google #Meta

Written with ChatGPT (GPT-4o mini).

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