The Securities and Exchange Board of India (SEBI) is taking significant strides to streamline its processes and enhance investor experiences in the financial markets. SEBI Chairperson Madhabi Puri Buch recently revealed the regulator's commitment to minimising the pendency of applications for approvals, with the goal of facilitating a quick turnaround for initial public offerings (IPOs), funds, and all financial instruments.
Puri Buch announced that SEBI has successfully saved investors a staggering sum of nearly Rs 3,500 crore per year. The savings have been made possible through the implementation of the Application Supported by Blocked Amount (ASBA) facility and faster settlement mechanisms.
A detailed breakdown of the money saved by investors is as follows:
The ASBA facility in the primary market has proved to be a game-changer, resulting in substantial savings of Rs 260 crore for investors. Moreover, the ASBA-like trading system has demonstrated its effectiveness, leading to an impressive Rs 2,300 crore in savings. The expedited T+1 settlement has contributed an additional Rs 700 crore in savings, while T+3 mutual fund redemption has saved investors Rs 230 crore.
Additionally, the SEBI chairpersonrevealed that the regulator is actively working towards achieving instantaneous settlement in the stock market, a significant leap forward from the existing T+2 settlement cycle.
In addition to this, SEBI is developing a new regulatory design. To ensure seamless implementation, SEBI believes that collaboration with industry bodies is crucial. Therefore, they have already sent out letters to industry bodies and exchanges to seek their inputs and opinions on the disclosure structure and standards.
Further, SEBI is actively engaging with CEOs of NIFTY 50 companies, seeking their feedback on disclosure standards.
