SEBI Board Meeting: From AIF flexibility to FPI net settlement - Here are key decisions
SEBI's board meeting resulted in decisions to enhance market efficiency, including flexibility for AIFs, net settlement for FPIs, and improved transparency regarding conflicts of interest.Summary
The SEBI Board Meeting on March 23rd focused on enhancing market efficiency and easing regulatory processes. Key decisions included granting greater flexibility to Alternative Investment Funds (AIFs) for scheme winding-up, proposing a net settlement mechanism for Foreign Portfolio Investors (FPIs) during the transition phase, and approving measures to simplify operations for InvITs and REITs.
Significant attention was also given to strengthening governance and transparency within SEBI itself. The board approved recommendations from a high-level committee (HLC) regarding disclosures of assets, liabilities, and potential conflicts of interest for board members and employees, aiming to align standards with government service norms. A digital system for managing conflicts of interest and a whistleblower system were also approved.
Further actions include potential amendments to SEBI regulations and the consideration of separate regulations specifically for board members by the Central Government. These changes stem from a review initiated in March 2025, prompted by allegations of conflicts of interest, and aim to foster a culture of ethical conduct and accountability within the organization.
(Source：Et Now)