SEBI Board Approves Key Steps To Deepen Indian Stock Markets

In the past, the Securities and Exchange Board of India (SEBI) has taken several initiatives to develop the stock markets in India. Continuing this trend, in SEBI's recent board meeting held on 26 April 2017, a number of steps were approved in order to deepen the stock markets including (i) laying down the framework for consolidation and re-issuance of corporate debt securities; (ii) monitoring of utilisation of issue proceeds by reducing the size of the issue for which monitoring agency is to be appointed; (iii) expanding the definition of Qualified Institutional Buyers (QIBs) to include systemically important Non‑Banking Financial Companies (NBFCs); and (iv) extension of exemption given to mutual funds and insurance companies participating in preferential issue from the lock-in period and eligibility criteria requirements to banks and public financial institutions.