Market regulator Sebi plans to revamp the informal guidance framework

Additionally, Sebi has proposed to hike the application fee from Rs 25,000 at present to Rs 75,000

The Securities and Exchange Board of India (Sebi) plans to revamp the informal guidance (IG) framework mechanism used by market participants for seeking clarity or interpretation of securities law.

Among the changes suggested by the regulator include allowing more market participants to seek guidance under this framework. Additionally, Sebi has proposed to hike the application fee from the existing Rs 25,000 to Rs 75,000.

New entities that will be allowed to seek IG mechanism are stock exchanges, clearing corporations and depositories, managers of pooled investment vehicles such as alternative investment fund, Real Estate Investment Trust (ReiT), Infrastructure Investment Trust (InVIT) and Collective Investment Scheme (CIS).

 

"Considerable time has elapsed since the introduction of the IG Scheme and given the experience of Sebi while processing informal guidance applications, the provisions of the IG Scheme need to be reviewed and updated in order to keep up with the ever-evolving market needs," Sebi said in a consultation paper.