In April 2025, Mumbai (Maharashtra)-based market regulator, Securities Exchange Board of India (SEBI)has announced the constitution of 6-member High-Level Committee (HLC) under the chairmanship of Pratyush Sinha, former Chief Vigilance Commissioner (CVC)to review provisions for its officials to disclose any conflicts of interest.
- The HLC is expected to submit its recommendations within 3 months from the date of constitution, following which SEBI’s board will consider the proposals.
Composition of HLC:
i.SEBI has named Injeti Srinivas, former Secretary, Ministry of Corporate Affairs (MCA) and former chairman of International Financial Services Centres Authority(IFSCA) as Vice-Chairman of HLC.
ii.Other members of HLC are:
- Uday Kotak, Founder and Director, Kotak Mahindra Bank Limited (KMBL);
- G. Mahalingam, former Executive Director (ED), Reserve Bank of India (RBI) and former Whole Time Member of SEBI;
- Sarit Jafa, former Deputy Comptroller and Auditor General (CAG) of India;
- Prof. R. Narayanaswamy, former professor at Indian Institute of Management (IIM)-Bangalore in Bengaluru, Karnataka.
Key Functions:
i.The HLC has been tasked to conduct comprehensive review of regulations governing property, investments, and liabilities of board members.
ii.The committee is supposed to identify gaps or any ambiguities in existing provisions, and recommend strengthened framework to prevent, mitigate and manage conflicts of interest.
iii.The 6-member panel is required to recommend a mechanism for the public raise their concerns regarding conflict of interest and disclosures, including a clear process for examining such complaints.
SEBI Relaxed Disclosure Norms for FPIs; Double Asset Threshold to Rs 50, 000 Crore
In April 2025, SEBI has relaxed disclosure norms for Foreign Portfolio Investors (FPI) by doubling the asset threshold limit for granular beneficial ownership (BO) disclosures from existing Rs 25,000 crore to Rs 50, 000 crore.
- These revised norms are now applicable to subscribers of Offshore Derivative Instruments (ODIs) through SEBI circular dated December 17, 2024.
- These relaxations were given by SEBI through a circular issued in exercise of the powers conferred under Section 11(1) of the SEBI Act, 1992 read with Regulations 22 (1), 22 (6), 22 (7) and 44 of SEBI (FPI) Regulations, 2019 to safeguard the interests of investors in securities and to promote the development of, and to regulate the securities market.
- All the provisions of this circular will come into force with immediate effect.
Key points:
i.As per the revised norms, FPIs (either individually or as a group) holding over Rs 50,000 crore of equity assets under management (AUM) in Indian markets are now required to disclose details of all entities holding any ownership, economic interest or exercising control, on a full look-through basis.
Note: In August 2023, SEBI had mandated that FPIs, who were holding more than 50% of their equity AUM in a single corporate group or with an overall holding in Indian equity markets of over Rs 25,000 crore, to disclose granular ownership details.
ii.SEBI has exempted certain FPIs, including those having a broad-based, pooled structure with widespread investor base or those having ownership interest by the government or government-related investors, from such additional disclosure requirements, subject to certain conditions.
hBits Received Licence from SEBI to Launch SM-REIT; Plans to Raise Rs 500 Crore via IPO
In April 2025, Mumbai (Maharashtra)-based hBits Investment Management Private Limited, a platform for frictional investment in commercial real estate, has received a license from SEBI to launch its Small & Medium Real Estate Investment Trust (SM-REIT) public issue.
- The company plans to raise up to Rs 500 crore via Initial Public Offering (IPO) by June 2025.
- Also, hBits will switch from its existing portfolio of premium commercial properties into the SM-REIT structure.
Key Points:
i.The SM-REIT structure, which is administered by SEBI, aimed to significantly enhance transparency, compliance, and investor confidence in the emerging asset class of frictional commercial real estate ownership.
ii.The company is aiming to acquire new premium commercial properties across the top 10 cities to achieve AUM of Rs 2,000 crore by March 2026.
Recent Related News:
In March 2025, SEBI notified a stringent regulatory framework for Small and Medium Enterprises (SME) Initial Public Offerings (IPOs). It has introduced a profitability requirement and capped 20% limit of the total size on Offer-For-Sale (OFS) component.
- Also, selling shareholders are not allowed to offload more than 50% of their existing holdings.
