2024: CHANGES THAT MATTER

The year 2024 has been a game-changer for the Indian regulatory landscape, with the Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority of India (Irdai), the Reserve Bank of India (RBI), the Pension Fund Regulatory Development Authority (PFRDA) and the Income Tax Department proposing key changes that will benefit investors, policyholders, pensioners, taxpayers and consumers alike. We give you a lowdown on five key changes proposed by each of these regulators

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Put Option For Bond Investors: Sebi unveiled a new voluntary “put option” for investors to sell bonds back to the issuers on specific dates at up to 100 basis point (bps) discount. Effective from November 1, 2024, this aims to enhance the liquidity of corporate bonds and boost the confidence of retail investors and growth-stage issuers. This allows bond investors to sell their bonds back to the issuer at specific dates with a slight discount and enhances investor flexibility and liquidity in the bond market. By mitigating interest rate risk, it encourages greater participation and reduces uncertainty for investors.

MFs Under Insider Trading Regulations: Sebi has brought mutual fund (MF) houses under the Prohibition of Insider Trading Regulations, 2015. This change, effective November 1, 2024, mandates MFs, trustees, employees, and directors to comply with insider trading regulations, such as disclosing MF holdings quarterly, and barring them from selling MFs if they have privileged information. Bringing MFs under insider trading regulations strengthens investor protection. It prohibits fund managers and other related personnel from utilising confidential information for personal gains or to benefit specific investors. This move enhances transparency and builds trust among investors, ensuring fair and equitable treatment for all.