SEBI announces major reforms at its 213th board meeting held in Mumbai

Current Context: The 213th SEBI Board Meeting, chaired by Tuhin Kanta Pandey, marked a decisive push toward retail inclusion, market efficiency, and regulator accountability. 

• These reforms simplify market operations while tightening ethical standards for SEBI itself.

Highlights:

• Social Impact Funds (SIFs) – Minimum investment cut from ₹2 lakh to ₹1,000, opening the Social Stock Exchange to retail investors.
• Foreign Portfolio Investors (FPIs) – Approved Net Settlement Framework (effective Dec 31, 2026), reducing forex costs and freeing capital.
• Alternative Investment Funds (AIFs) – New “Inoperative Fund” tag for funds stuck due to litigation/tax issues, easing compliance.
• Fit & Proper Criteria – FIRs/complaints no longer mean automatic disqualification; convictions in economic/securities offences will trigger mandatory disqualification.
• Ethics Reform within SEBI – Chairman & Whole-Time Members classified as “insiders” under insider trading rules.
• Asset Disclosure Mandate – Senior SEBI officials must publicly disclose immovable property holdings.
• Office of Ethics & Compliance (OEC) – New body created to monitor insider trading risks, relationship disclosures, and ethics compliance.
• Overall Impact – Reforms balance retail empowerment, global investor efficiency, fund flexibility, and regulator transparency.

Question:

Q.1 Under SEBI’s revised “Fit & Proper” criteria, disqualification will occur in case of:
a) Conviction in economic/securities offences
b) Any complaint received
c) Any FIR filed
d) Delay in filing returns

Answer: a) Fit & Proper Criteria – FIRs/complaints no longer mean automatic disqualification; convictions in economic/securities offences will trigger mandatory disqualification.