Sensible rules from Sebi

New regulations promise better governance and transparency

The Securities and Exchange Board of India (Sebi) at its recent board meeting took key decisions, apart from approving accounts for last fiscal year. The regulator has pushed through the proposal to demand enhanced disclosures of beneficial ownership and economic interests from certain categories of “high-risk” foreign portfolio investors (FPIs). It has also deferred the controversial proposal to regulate the total expense ratio (TER) of mutual funds until a further consultation process is completed.