Sebi chairman Ajay Tyagi
Sebi chairman Ajay Tyagi

Sebi board allows MFs to segregate distressed assets

Sebi board also approves proposal to expand the offer-for-sale mechanism to companies with a market cap of 1000 crore and above; clears easier listing norms for startups

New Delhi: In a series of reforms, the Sebi board on Wednesday cleared easing of norms to kickstart listings of startups and allowed mutual funds to segregate distressed assets to safeguard investment returns.

The board of the Securities and Exchange Board of India (Sebi) also approved a proposal to expand the offer-for-sale mechanism for reduction of stake in listed companies and relaxed clubbing of investment limit norms for well-regulated foreign investors.

Currently, foreign portfolio investors are treated as part of the same investor group and the investment limits of all such entities are clubbed for deriving the investment limit as applicable to a single FPI, in case of the same set of ultimate beneficial owners investing through multiple entities

The expansion of offer-for sale scheme will include all companies with a market capitalisation of 1,000 crore and above. Earlier, only the top 200 companies were allowed to do so.

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