The meeting of SEBI Board was held on March 24, 2025, which was also the first meeting under the new Chairperson Mr. Tuhin Kanta Pandey. Given the market’s concerns and need for improvements, various decisions were made to address issues for investors and stakeholders.
Key Decisions of SEBI Board Meeting
Increased threshold for FPIs to make additional disclosures: Due to the doubling of cash equity market trading volumes from FY 2022-23 to FY 2024-25, the Board has approved raising the disclosure threshold for Foreign Portfolio Investors (FPIs) from INR 25,000 crore to INR 50,000 crore. Thus, only FPIs holding more than INR 50,000 crore in equity AUM in India will have to make additional disclosures as outlined in the August 24, 2023, circular of SEBI.
Review of the appointment process of PIDs and cooling off period for KMPs in MIIs: If the governing board of a Market infrastructure Institution (MII) decides not to re-appoint an existing Public Interest Director (PID) after his or her first term, it must record the rationale for this decision and communicate it to SEBI. The cooling-off period for its KMPs joining competing MIIs will be set by the Governing Board of the MIIs, and the appointment of specific KMPs viz. Compliance Officer, Chief Risk Officer, Chief Technology Officer shall now require the approval of Governing Board.
Investment Advisers and Research Analysts allowed to charge advance fees: Investment Advisers (IAs) and Research Analysts (RAs) can now charge advance fees for up to one year, if agreed by the Client. Additionally, fee-related provisions shall only be applicable in case of individual and Hindu Undivided Family (HUF) clients, and not to non-individual clients.
Amendments to merchant banker, debenture trustee, and custodian regulations deferred for further review: The implementation of amendments to SEBI regulations for Merchant Bankers, Debenture Trustees, and Custodians to carry out other regulated activities as a separate legal entity has been deferred for further review and evaluation of alternative approaches.
HLC to review conflict of interest, disclosures, and related matters: The board decided to form a High-Level Committee (HLC) in order to undertake a comprehensive review of the provisions relating to conflict of interest, disclosures pertaining to property, investments, liabilities etc., and related matters in respect of Members and Officials of the Board. The objective of the HLC is to comprehensively review and make recommendations for enhancing the existing framework for managing conflicts of interest, disclosures and related matters towards ensuring the highest standards of transparency accountability, and ethical conduct of Members and Officials of the Board.
ELP Comments
SEBI Board’s decision to undertake a comprehensive review of the conflict-of-interest management framework for its members and officers is an interesting and significant step towards enhancing transparency, accountability, and ethical conduct across the Board’s operations in light of recent developments.
The SEBI Press Release No.15/2025 dated March 24, 2025 can be found here
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