Facts for Prelims
Source: TH
Context: SEBI, the markets regulator in India, has approved several proposals for boosting the corporate governance ecosystem and preventing fraud and market abuse by stockbrokers
| Measures Introduced | Description | Significance |
| Ending permanent directorship | SEBI has ended the practice of individuals holding permanent directorship on boards of listed companies. | This move aims to boost corporate governance and encourage the appointment of independent directors who can provide an objective view. |
| Framework to prevent fraud | SEBI has put in place a formal mechanism to prevent fraud and market abuse by stockbrokers. | This step is expected to safeguard investors’ money from misuse by stockbrokers. |
| Private equity funds as sponsors of mutual funds | SEBI has approved a regulatory framework to allow private equity funds to become sponsors of mutual funds. | This move is expected to deepen the mutual fund industry in India. |
| ESG disclosures | SEBI has given its nod to norms for Environmental, Social, and Governance (ESG) disclosures by listed companies. | This step is expected to enhance transparency and encourage responsible corporate behaviour. |
| Fund-blocking facility | SEBI will introduce a fund-blocking facility for secondary market transactions, similar to the one used for Initial Public Offerings (IPOs). | This measure is aimed at safeguarding investors’ money from misuse by stockbrokers. |
