Market regulator Sebi on Friday approved a set of proposals, including reintroduction of open market share buybacks through exchanges, relaxation of intra-day borrowing norms for mutual funds and a faster fundraising mechanism for alternative investment funds (AIFs), PTI reported.The decisions were taken at a meeting of the regulator’s board of directors, which also agreed to take measures to simplify the transfer of securities after the death of an investor and revive trading in agricultural commodity derivatives.One of the major reforms approved by the board is the return of open market repo operations through exchanges, a route that was phased out earlier.According to Sebi, reintroducing the mechanism will provide companies with an additional facility to repurchase while enabling faster implementation.“Reintroducing this repurchase method would provide companies with an additional mechanism to conduct repurchases while ensuring fair opportunity and tax treatment for public shareholders.”The regulatory body also approved the launch of a green channel mechanism called GARUDA for AIFs. Under this framework, eligible funds will be allowed to start raising funds within 10 business days of submitting their deposit notes, compared to the current 30-day waiting period.
In addition, the Board relaxed intraday borrowing rules for mutual funds and approved a simplified process for transferring securities in the event of an investor’s death.Sebi also approved measures aimed at reviving business activity in agricultural commodity derivatives.
