New Delhi, Sep 13 Association of Mutual Funds in India (AMFI) on Saturday hailed the regulatory changes introduced by the Securities and Exchange Board of India (Sebi), simplifying norms for IPO and foreign portfolio investors.
Sebi, in its recent board meeting, decided to revise the minimum public shareholding (MPS) norms for large companies planning initial public offerings (IPOs).
“We welcome SEBI’s progressive and well-calibrated reforms announced at its recent Board Meeting. The new incentive structures to expand mutual fund penetration beyond the top 30 cities and among women investors align closely with AMFI’s financial inclusion objectives," said Venkat N Chalasani, Chief Executive, AMFI.
The reduction in the maximum exit load from 5 per cent to 3 per cent further reinforces SEBI’s commitment to investor protection and transparency.
The reclassification of REITs as ‘equity’ for mutual fund investments is also a timely step that will enhance diversification opportunities and support the growth of real estate as an investible asset class, Chalasani added.
Taken together, these initiatives will broaden investor participation, strengthen the long-term health of the mutual fund industry, and strike a thoughtful balance between regulatory rigour, investor protection, and ease of doing business, he said further.
Earlier, SEBI announced a series of regulatory changes, including a major relaxation in IPOs, ease for FPIs planning to invest in the domestic market, and simplifying entry norms for advisory certifications.
Under the new norms, companies with a market capitalisation of Rs 50,000 crore to Rs 1 lakh crore will now get more time to meet the public shareholding requirements.
They will be required to achieve 15 per cent MPS within five years of listing and 25 per cent within 10 years.
At present, companies are required to meet the 25 per cent threshold within three years.
Additionally, a new category of alternative investment funds that are exclusively available to accredited investors (AI) has been approved. According to a SEBI announcement, the minimum ticket size for Large Value Funds has been reduced from Rs 70 crore to Rs 25 crore.
The new SWAGAT-FI framework, which offers 10-year registrations, a single demat account, and exemptions from the FVCI rule requiring 66 per cent of corpus in unlisted equity, will benefit sovereign wealth funds and pension funds.
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