Sebi plans steps to tighten settlement norms; boost municipal bonds
|Source: The Hitavada Date: 12 Jan 2017 09:45:13|
IN A slew of reform measures, Sebi plans to tighten its settlement norms by making the suspected defaulters pay more for any delay on their part, while fresh steps would be taken to popularise new investment vehicles like municipal bonds, REITs and InvITs.
Also among the proposed measures, which are to be considered by Sebi board during its meeting on January 14, is allowing mutual funds to invest in a new class of ‘Alternative Securities’, which would initially comprise of Real Estate and Infrastructure Investment Trusts.
Defaulters, whose application for settlement of cases are delayed, would soon be required to pay a non-refundable amount of Rs 2,000 seeking condonation of the delay.
Further, such entities would have to pay additional money in case there is more than 60 days delay in applying for settlement, a senior official said. Currently, settlement applications at pre-showcause notice stage and on suo-moto basis are treated equally.