SEBI Board will meet on June 18, these decisions will also affect retail investors – SEBI Board May Decide on Many Proposals in Its 18 June Meeting Many Decisions May Have Implications for Retail Investors

SEBI board meeting is scheduled to be held on 18 June. In this, decisions are expected on many such proposals which will also affect retail investors. The draft of some proposals was recently issued by the market regulator. People’s opinion was sought on them. Right now the meeting is about three weeks. During this time the agenda of the meeting is expected to be finalized.

Reits and Invits can get equity status

SEBI’s board can take an important decision on Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (Invits). They can get equity status. It has been a major demand for the industry for a long time. If Reits and Invits get equity status from SEBI, then they can be included in the indices of shares. A second demand is related to allowing more investment of mutual funds in reits and invits. The proposal that Sebi has prepared in this regard has been said to increase the net asset value of equity funds in reits and invitces from the current 10 per cent to 20 per cent.

Rights and Invits’ rules may also change

SEBI has also prepared a proposal to change the rules of Reits and Invits. This will increase the Ease of Doing Business. Experts say that Rites and Invits have not yet received much response from investors. Especially retail investors have not seen much interest in them. Experts say that Reits and Invits can play a major role in terms of portfolio diversification.

Considering separation from exchanges of clearing corporates

In the SEBI meeting, the proposal to separate the clearing corporates from exchanges can also be decided. SEBI has proposed the disorder to make Clearing Corporation independent. With this, exchanges will not have to enter capital in clearing corporates. However, exchanges have a different opinion about this. They are in favor of continuing the existing structure. Experts say that if clearing corporations are not made financially independent then there is no point in making them independent.

ALSO READ: Health Care Sector: Investing in healthcare sector will earn heavily, Nilesh Shah of Kotak AMC told the reason

Settlement scheme may come for commodity brokers

A settlement scheme for commodity brokers associated with the NSEL case can also get the approval of SEBI board. SEBI had issued 300 show causes notices in this case. SAT also advised SEBI to consider a settlement scheme for these commodity brokers under the rules. In the 2013 NSEL scam, SEBI found that many commodity brokers had violated SEBI rules then. He was not a fit and proper to become an intermediate. Many commodity brokers challenged SEBI’s order in SAT in this case.