The Securities and Exchange Board of India (SEBI) is expected to take several major decisions to attract investment and make capital market rules easier in its second board meeting of the year, to be held on June 18, 2025. The meeting will be chaired by SEBI Chairman Tuhin Kanta Pandey.
According to sources, the board may announce incentives for Foreign Portfolio Investors (FPIs), relaxations in delisting norms for PSUs, and co-investment support in Alternative Investment Funds (AIFs).
New Category: IGB-FPIs Likely for G-Sec Investors
For FPIs investing in government securities via the Voluntary Retention Route (VRR) and Fully Accessible Route (FAR), SEBI is likely to introduce a new investor category called IGB-FPIs.
This category may come with relaxed Know Your Customer (KYC) norms aligned with RBI’s standards. In addition, NRIs, OCIs, and Resident Indian Individuals (RIIs) are expected to be allowed to invest in IGB-FPIs freely.
There are also reports that SEBI may relax rules related to disclosure of material changes and equity investment limits for these investors.
PSU Delisting May Get Easier
Another big expected move is the simplification of the PSU delisting process. Currently, eight listed PSUs have over 90% government shareholding, with companies like KIOCL and Haryana Financial Corporation having more than 99%. These firms face challenges in reducing holdings to meet the mandatory 25% minimum public shareholding.
SEBI may remove the condition of requiring minimum public float and even the two-thirds shareholder approval requirement for voluntary delisting in such PSUs.
Focus on AIF Co-Investment Rules
The board is also likely to review recommendations for easing co-investment in AIFs through separate co-investment vehicles. These changes aim to make private market investing more flexible for large investors.
REITs and InvITs Norms May Also Be Relaxed
Finally, SEBI may also ease regulations for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), allowing more flexibility in capital markets and infrastructure finance.
