The primary market after several years is performing really well with the number of retailers crossing the one million mark in at least 2 of the 15 issues. Also, the IPO approval timing had been reduced from T+12 to T+6 and is further being considered to be brought down to T+4 to meet the global best standards, said U.K. Sinha, Chairman, Securities and Exchange Board of India (SEBI), while delivering his Inaugural Address at the 13th edition of FICCI’s annual Capital Markets Conference ‘CAPAM 2016’.
Speaking on infrastructure investment trusts (InvITs) and real estate investment trusts (REITs), the SEBI Chairman said that the issues pertaining to both were being resolved and more InvITs and REITs would soon be registered. Amended regulations now facilitate growth and allow foreign portfolio investors (FPIs) to directly trade in debt markets. He added that framework of disclosures and pricing were also being reviewed.
On mutual funds, Sinha said retail investments from small towns were complementing mutual funds industry. The mutual funds were helping in counter balancing the foreign portfolios and mobilizing domestic funds.
Sinha said for strengthening corporate governance and to give confidence to the investors, SEBI have been active in enforcement of its regulation and is being vigilant to give the investors the comfort needed.
He added that SEBI has voluntarily decided to follow the good governance guidelines as applicable to listed companies. It would soon have a woman board member and would also have non-executive members and the Board’s performance would also be evaluated.
With an aim to deepen the commodity derivatives markets and enhancing liquidity SEBI has allowed options trading on commodity, said Sinha and added that the introduction of new commodity derivatives product is considered to be conducive to the overall development of the market, attracting broad base participation, enhancing liquidity, facilitating hedging and bringing more depth to the market.