SEBI in its board meeting held today, has made it compulsory for companies to disclose use of funds raised via qualified institutional placements and preferential issues.

It has also strengthened disclosure norms for related party transactions, and have asked companies to reduce the number of directors on their boards to 8 from 10, by April 1.

It has approved reduction of additional expense for mutual funds to 5 basis points from 20 basis points. The post of CMD (chairperson & MD/CEO) position will be split by April 2020, for top 500 entities by market value.

Stock exchanges have also been allowed to introduce co-location services on a shared basis. Tick by tick data will be provided free of cost, while existing norms for F&O trading will be enhanced.

It has also allowed stock exchanges to freeze promoters shareholding for non-compliance. The maximum investment from angel investors in new age companies was hiked to Rs.10 crore from Rs.5 crore.

The SEBI’s board has accepted 40 recommendations in all out of 80, from the Kotak Committee Report, 15 proposals were accepted with modifications, while it has referred 18 recommendations to the government.

Further, some recommendations like sharing of information with promoters, increasing the number of mandatory board meetings for companies to 5 from 4, has not been accepted.

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