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To counter the menace of the grey market being used to offload shares and thereby manipulating public offerings (popularly called dabba trading), securities market regulator SEBI is likely to come out with a campaign covering TV, radio, and print media besides cinema and digital media.
This would be over and above its campaigns against Ponzi and illegal pooling schemes. This is part of the agenda for SEBI’s board meeting on May 20. SEBI is also contemplating putting in place a dividend distribution policy post-listing, outlining the parameters of dividend distribution, besides periodicity.
Forensic accounting cellA forensic accounting cell is also likely to be set up to delve deeper into misdeeds, such siphoning off or diversion of funds by promoters. The cell will seek to examine such cases on priority basis.
The debate of bright lines of control (in takeover cases) is also likely to be discussed post analysis of responses received for the recent discussion paper which provided two options — a framework for protective rights or a numerical threshold for control. The SEBI board is also likely to discuss the outcome of responses received from the public on the issue of cash distribution by depositories. The regulator is also likely to review its HFT/algo framework, set up a trade repository for corporate bonds (to consolidate OTC deals done at a single place), besides re-evaluating ownership and governance norms of stock exchanges.
Mutual fundsA slew of measures in the mutual funds space will also be high in SEBI’s priority list. These would require fund houses to provide additional disclosures in scheme-related documents, such as scheme’s top holdings, etc.
Also likely is the introduction of a dashboard concept on AMC websites to provide performance and important details of each scheme.
To protect the interests of investors, SEBI is considering introduction of principles relating to soft-dollar arrangements between AMCs and brokers so that such arrangements are limited to benefits, such as free research report and the like.
Investors are also likely to receive the right to check unclaimed amounts lying with an MF scheme.
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