Key decisions taken at Sebi's board meet: Angel Broking

Views of Mr. Mayuresh Joshi (Fund Manager, Angel Broking):

The board of SEBI concluded its last meeting for the financial year 2017-18 on 28th March. Among the key topics to be taken up for discussion were the rationalization of co-location services, key corporate governance changes and regulation pertaining to listed companies that were undergoing insolvency proceedings under the NCLT.

On the High Frequency Trading (HFT) front, SEBI has allowed shared co-location services for trading members to reduce costs. SEBI has also asked the stock exchanges to provide tick-by-tick data free of cost. SEBI had expressed concerns over algorithmic trades clogging the system. To address this issue, SEBI has also asked exchanges to allot a unique identifier to each of the algorithms used so that an audit trail can be analyzed.

On the corporate governance front, SEBI has accepted most of the recommendations made by the Uday Kotak Committee. This includes reducing the maximum number of directors to 8, disclosure of director skill sets and auditor credentials, enhanced disclosure of related party transactions etc. In addition, SEBI has also accepted the separation of the role of Chairman and MD from 2020 onward for the top-1000 companies.

While the detailed modifications to open offer and buyback guidelines will take some more time to crystallize, there are some additional interesting modifications. SEBI plans to move all stock futures into physical settlement in a phased manner so that the speculative element can be reduced. SEBI has also proposed to cap the maximum additional expenses of a mutual fund scheme at 5 basis points as against 20 bps."

Source : Equity Bulls

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