SEBI held its board meeting on 30 September 2024

Current Context: The Securities and Exchange Board of India (SEBI) held its board meeting on 30 September 2024 in Mumbai. The meeting was chaired by Madhabi Puri Buch, the current chairperson of SEBI.

• Here are some key highlights from the meeting:
• New Asset Class for HNIs: SEBI approved a new asset class for high-net-worth individuals (HNIs) with a higher risk appetite.
• MF Lite Regulations: Introduction of ‘MF Lite’ rules aimed at passive mutual funds.
• Faster Rights Issue Norms: SEBI approved norms to enable faster rights issues, allowing more flexibility in allotment to specific investors.
• F&O Trading Regulations: Discussions were held on tighter norms for Futures & Options (F&O) trading to curb retail losses.
• Penalties: SEBI imposed fines on several entities, including a ₹12 lakh fine on NSE Data & Analytics for IT infrastructure violations.

Question:

1 What is the purpose of the ‘MF Lite’ regulations introduced by SEBI?

• A) To regulate high-frequency trading
• B) To introduce new tax benefits for mutual funds
• C) To simplify regulations for passive mutual funds
• D) To enhance cybersecurity measures for mutual funds

Answer: C) The ‘MF Lite’ regulations are aimed at providing a simplified regulatory framework for passive mutual funds, making it easier for entities to launch and manage these funds.