India's Securities and Exchange Board of India (SEBI) recently approved several proposals to simplify market regulations for investors and corporates. Here are the key takeaways from the latest board meeting:

1. Demat Mandate:

SEBI mandated that key company personnel, including directors and managers, must hold their shares in Demat form before an IPO.

This move aims to reduce risks associated with physical share certificates like loss, theft, and delays in transfer and settlement.

2. ESOPs for Founders:

Startup founders can now retain Employee Stock Ownership Plans (ESOPs) even after the company goes public. There will be a one-year cooling period between ESOP grants and IPO filing to prevent misuse.

3. Delisting of PSUs:

Public Sector Undertakings (PSUs) can now voluntarily delist themselves to align with the government's disinvestment agenda, streamlining their operations.

4. AIF Co-Investments:

Alternative Investment Funds (AIFs) can now co-invest in high-quality deals, allowing investors to make additional investments in the same unlisted companies.

5. Simplified Framework for FPIs:

SEBI also simplified regulations for Foreign Portfolio Investors (FPIs) investing in Indian bonds, making India more attractive for global capital due to lower-risk sovereign debt and eased compliance rules.