A slew of measures including a new settlement mechanism for capital market wrongdoers, a proposal to allow foreign investors to trade in commodity derivatives and a common application form for registration of FPIs in domestic markets were approved by SEBI on Tuesday.

Also, SEBI said the NSE and its officials had filed for consent, even as ICICI Bank was considering the same.

Under the new norms, SEBI has decided not to settle any proceedings against a wilful defaulter, fugitive economic offender or someone who has defaulted in payment of any fees due or penalty imposed under securities laws. In addition, SEBI said it will issue settlement orders, which will include monetary terms and may also include non-monetary terms.

SEBI introduced a new provision to deal with ‘settlement with confidentiality’ or concept of an ‘approver’ for offenders in the securities market who could help the regulator blow the lid off major frauds or scams. An offender can expect to get a less-serious charge or a lenient sentence in exchange for vital information that could help crack a case.

Listing T+3

SEBI also gave its nod for amending delisting regulations and allowed the long-standing interoperability of clearing houses. The regulator has cut down the listing time taken by companies post IPO from T+6 (today+6 days) to T+3. The framework for enhanced market borrowing by large corporates too, has been approved, along with the amendment to re-classification of promoter or public category shareholders.

SEBI Chairman Ajay Tyagi said the board has approved new KYC norms for FPIs and fresh guidelines would be issued soon.

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