Securities and Exchange Board Of India (SEBI) is working on an online voting mobile app to increase the participation of retail investors in the matters of corporate governance. The designing of a common mobile app is said to be currently in progress.
“Effective governance is a necessary and important tool for protecting the interests of various stakeholders, particularly small investors, in the market. This has been and will always remain an important area of focus for SEBI,” the regulatory body said.
This online voting app might also include links to the recommendations of SEBI registered proxy advisors, to help investors take informed decisions on the company’s proposals. SEBI said that the option is under consideration with the regulatory body.
SEBI also said that Indian investors will soon be provided with the facility to hold securities issued overseas in their demat accounts in India. These initiatives are said to be in continuation to SEBI’s previous efforts to strengthen the Indian securities market.
Further, SEBI said that it will review the existing disclosure framework pertaining to environmental, social and governance-based disclosures in India relating to business responsibility report and integrated reporting.
SEBI Enabling The Startup Ecosystem
Earlier in June, SEBI has allowed tech companies to issue differential voting rights shares. With Differential Voting Rights (DVR), startup founders will be able to retain control of the company even if they have a minority stake.
EY India’s IPO Readiness Survey Report showed that India’s IPO activity was at a comparably higher level and saw 90 IPOs, raising $3.9 Bn, driven by solid activity in Q1 FY18. With regards to IPOs in India by startups, 2017 proved to be a blockbuster year with a record 122 companies raising a staggering $10.85 Bn through IPOs, however, 2018 witnessed the bigger performance.
SEBI has also recently proposed a framework for accreditation of investors who want to invest in startups that would be listed on the Innovators Growth Platform. In a circular dated May 22, SEBI had provided framework for accreditation of investors. This includes eligibility criteria and procedures to be recognised as an accredited investor and also mentioned the validity of accreditation.
Also In May, the regulatory body had also released its framework for regulatory innovation sandbox aimed at creating an ecosystem which promotes innovation in the securities market.