The Sebi board, which met under the chairpersonship of Madhabi Puri Buch for the first time since she took charge in March, has increased the networth criteria and enhanced the track record requirement of promoters for running collective investment management company (CIMC).
Collective investment scheme (CIS) is a pooled investment vehicle in close-ended investment space and the units of the schemes are to be listed on exchange.
CIMC and its group shareholders are restricted to 10% shareholding or representation on board of another CIMC to avoid conflict of interest, said Sebi in a press release after its board meeting.
Like in the case of mutual funds, Sebi has proposed to introduce skin-in-the-game rules for CIS as well. The regulator said CIMC and its designated employees should have mandatory investment in the CIS to align their interest with that of the CIS.
Sebi has also mandated a minimum number of investors and subscription amount at CIS level. It has rationalised the fee and expenses to be charged to the scheme and reduced the timeline for offer period of scheme and refund of money to investors.
The Sebi board also raised the existing threshold limit for simplified documents for securities held in physical mode to ₹5 lakh per listed issuer from ₹2 lakh. For securities held in dematerialised mode, it has been revised to ₹15 lakh from ₹5 lakh for each beneficiary account.
The regulator also said a legal heirship certificate or its equivalent certificate issued by a competent government authority will be an acceptable document for transmission of securities.
