Securities and Exchange Board of India (Sebi) is expected to announce a slew of measures at its board meeting on Wednesday in Mumbai.
This will be the market regulator's first board meeting under Ajay Tyagi, who took charge in March.
The meeting's agenda likely includes a unified licence for brokers in commodity and equity markets and granting leeway for banks to tackle bad loans. IPO announcements could relate to Qualified Institutional Buyer (QIB) status for non-banking financial companies and strengthening of monitoring norms for small Initial Public Offerings.
Here is a look at some of the likely announcements on Wednesday and their expected impact on the market.
Likely announcements:
Important NBFCs to be classified as QIBs
Impact: Those NBFCs will enjoy status of foreign investors and mutual funds in IPOs; chances of share allotment will increase
Unified licence for brokers in commodity and equity markets
Impact: Ease of doing business, cost efficiencies for brokers
Relaxing criterion for banks in preferential allotment of shares
Impact: Move will enable lenders to easily acquire and sell shares of stressed companies; help in faster recovery of
bad loans
Clarity on NRI investments and simpler registration for foreign investors
Impact: NRI investments in P-notes to be blocked to curb round-tripping; easier entry for foreign investors
To extend post-issue monitoring requirement for IPOs of less than Rs 500 cr
Impact: Greater scrutiny of investment banks and companies' use of IPO funds; lens on siphoning of IPO proceeds
Instant-access facility, use of e-wallets for mutual funds
Impact: Faster cash-outs, easier access