What Did Sebi Decide at Its 210th Board Meeting?

With reforms for Startups and psu delisting norms, tweaks to the structures of alternative investment funds (AIFs) and Angel Funds, and Easier Process for Intermediaies, The Regulator Moved Decisively to Bolster Its ‘ease of doing business’ ageda.

Mint Breaks down the key decisions from sebi’s 210th board meeting, and what they mean for investors, startups and the broader financial ecosystem.

What Did Sebi Decide for Promoters of Startups?

SEBI Permitted Founders Designated as Promoters to Retain Employee Stock Options (ESOPS), Provided these were granted at least a year before the company fled red herring it is dressed herring. (DRHP). Earlier, Such Holdings Had to Be Liquidated Before The Listing, Creating Regulatory Headaches for Startup Founders, Alredy Under Pressure to become unicorns and rewards their early investors with RICH RICH RICH RICH RICH RICH RICH RICHES

Many are now in Wait-Rand-Watch Mode. “The move by sebi is intended to ease the pain of many promoters who started the business, going from Entrepreneur to Employee,” Said Archana Balasubramanian, Partner at Agama Law SSOCIATES.

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Shubha Yadav, Partner at RS Law Chambers, termed the change “clear and targeted”, adding that the one-yar cooling-off period “covers only there-spoiled benefits incharge Prior to the filing of the drhp, which should not raise any legal or compliance challenge during IPO preparation “.

Flagging Potential Grey Areas, Ketan Mukhija, Senior Partner at Burgeon Law Said, “Determining the start of the cooling-of-off period and ensuring there are no indirect grants will Require Careful Careful Careful CAREFULICATION.”

How is Sebi Easing Psu Delistings?

Public sector undertakings (psu) in which the government and other psus hold an at least 90% stake can now delist without The new fixed-price route requires a 15% Premium Above The Calculated Floor Price, Based on Historical Data and Independent Valuation.

Prashant Mishra, Founder & CEO of Agnam Advisors, Said Government-Owned Companies Now Have a Clearer Path to Exit the Stock Market Through a Straightforing Protem, Making It Easier Forring Institutional Investors to Undrstand What is Happening.

Legal Experts Said One Critical Legal Question Remains: How will Minority Shareholders’ Rights be Safeguarded? Abhishek Dadoo, Partner at Khaitan & Co, said this framework enables the delisting of psus that would otherwise struggle to exit to exit, but comes at the cost of diluting mineority protectives. “The delisting price is linked to an independent Valuation, not the history market price-will be high. He added.

Can aif investors now co-invest More Easily?

Category I and II AIFS can now offer co-investment schemes (CIVS) with their structure, giving accredited investors a chance to investing to investing the aif in unlisted companies.

“The Approval of the Co-Investment Vehicle is a Breakthrough that will significantly expand private capital participation in India,” said gopal srinivasan, chairman and managing director, TVS Capital Funds. “Typically, in Global Practice, 15-20% of a Fund’s Corpus Comes Through Such Co-Investments, and this is now within Reach”, He said.

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However, Nandini Pathak, Partner at Bombay Law Chambers, Emphahsized Caution, Saying The Eligibility of Co-Investors Bold Hinge on his accreditation status. “Restrictions May Continue Around Exit Timing and Terms. These advisory rights are being considered for listed co -envestments,” She said. Pathak suggested fund manners adopt approves internal controls and best execution practices, and provide adequate disclosures to the main aif investors.

How is Sebi Changing Investments Norms for Angel Funds?

Only Accredited Investors (AIS) Can Now Invest in Angel Funds. AIS Undergo Independent Verification to Ensure Compliance and Protect Investors. Earlier Investments by non-Ai Grandfathered in, with a One-Year Transition Period. Limits for Investing in Startups Have Been Widened From 10 lakh to 25 Crore), the 25% concentration cap has been removed, and more than 200 accredited investors can invest togeether. Managers must retain “skin in the game” of at least 0.5% or 50,000 per deal.

Experts said aifs have long been attracting high-private individuals (hnis) and relatively sophisticated investors, which gives sebi more leway to relay to relaxes and make it easy to do busines. “It is now possible for fund managers to advise on listed seconds, allowing them to provide advisory services,” said kush gupta, Director at SKG Investment & Advisory. He added that the revision of investment thresholds would give angel funds more flexibility to choose their investments.

What relieve has sebi offered to FPIS who Invest only in Government Securities?

Sebi has been eased compliance norms for foreign portfolio investors that investment only in government securities (GS-FPIS). Key Measures Include Longer KYC Review Cycles, No Need to Disclose Investor Group Structures. Nris and Ocis can now be constituents of GS-FPIOT Restrictions, and Material Changes Can Be Reported Within 30 Days, From From 7 Days. These steps aim to attract foreign capital as Indian G-SECS have been included in global bonds indices since 2024-25.

Also Read: Sebi Engages with Venture Capital Funds Directly to Smoothen Transition to AIF

“The Risk Profiling for FPIS who only invests in G-SECS is now various notches lower than a mix portfolio fpi with significant Easing,” Said Manisha Shroff, Partner at Khaitan & Co. However, She Flagged some legal ambiguities. “Sebi’s relationship is currently for existing and prospective fipis that exclusively investment in g-sex. The fin printer on how long such to remain sleeps need to remain and IF there And fast-tracked registration process remains to be seen. “

What is the new settlement scheme for brokers involved in the NSEL CASE?

Sebi has introduced a one-time Monetary Settlement Plan Based on Quantity and Value of Trades. Brokers Facing Enforcement Actions – But Not Named in charge Sheets or Declared Defaulters – Can Opt in to Close Proceedings.

The Settlement Mechanism for Nsel-Related Brokers is a Bold Move to Unclog Legacy Enforcement actions, said amit tungare, managing partner at asahi lead, said. “Sebi will need to ensure that the settlements do not dilute accountability, particularly in cases involving systemic failure”, He said.