The Securities and Exchange Board of India (SEBI) has cleared the framework to set up international financial services centres (IFSC), approved rules for municipalities to issue and list bonds and made it easier for banks to take control of listed companies in financial distress by converting loans into equity.
The board of the market regulator also approved a roadmap for the new fiscal year, when it is expected to unveil rules to help startups raise funds through crowdfunding and institutional trading platform, as well as measures such as e-IPO and e-KYC to make it easier to invest in the market. It has also decided to tighten disclosure rules.
Foreign stock exchanges, clearing corporations and depositories can set up operations in IFSCs, which will be developed on the lines of global financial centres of Singapore and Dubai. The guidelines permit issue of depositary receipts and debt securities in IFSCs by domestic as well as foreign companies, subject to foreign currency depository regulations.
"The new IFSC guidelines would help create vibrant capital market activities in such centres. Stock exchanges and clearing corporations would be provided concessions for setting up ventures in the IFSCs," Sebi chairman UK Sinha told reporters in New Delhi on Sunday after the board meeting, which was addressed by finance minister Arun Jaitley.
"All existing exchanges would be allowed to set up their subsidiaries in the IFSC under the relaxed regimes," Jaitley said.
Source: Economic Times
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