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At its much-anticipated board meeting on September 12, capital market regulator SEBI introduced the SWAGAT-FI -- Single Window Automatic and Generalised Access for Trusted Foreign Investors -- framework. The framework is aimed at providing low-risk foreign investors with an easier and faster route to investments on Dalal Street.

Here's a quick take on all major decisions from the market watchdog's latest board meeting: 

The market regulator has decided to ease rules for selling shares to the public and for maintaining public holding.

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Currently, extremely strict rules are in place, like companies being required to quickly offload more shares in the market. Under certain conditions, big companies will be allowed more time to sell their equity. 

While minimum public offer (MPO) norms determine the amount of shares that must be offered mandatorily in an IPO, minimum public shareholding (MPS) rules require listed companies to maintain a certain minimum percentage of shares available for public shareholding.

Registered life insurance companies and pension funds will get a reserved portion among anchor investors. 

IRDAI and PFRDA regulate life insurers and pension funds in the country, respectively. 

The regulator will ease the disclosure compliance for companies making smaller related party transactions (RPTs), reducing the paperwork required for such corporates under certain conditions. 

Retail mutual fund schemes operated under International Financial Services Centre (IFSC) regulations can now be registered as foreign portfolio investors (FPIs).

Resident domestic companies will be able to contribute up to 10 per cent in these funds.

Also, domestic mutual funds will be able to invest in foreign mutual funds or unit trusts, provided that they have exposure to Dalal Street securities.

SEBI will create a dedicated category within the alternative investment fund (AIF) framework for accredited investors (AI-only schemes).

Large value funds (LVFs) will now be required to invest a minimum of Rs 25 crore, instead of the current Rs 70 crore.

The SWAGAT-FI framework is aimed at providing reliable and low-risk foreign investors with easier and faster access to the domestic capital market.

The regulator has rolled out a dedicated website aimed at enabling foreign portfolio investors to access information on all Dalal Street regulations under one roof.   

Currently, information on Dalal Street rules and regulations is available at different sources.

The regulator has decided to classify real estate investment trusts (REITs) as equity. 

What this means essentially is that REIT units will be treated like stocks, not like hybrid or debt-like instruments.

Currently, these instruments are treated as hybrid securities. 

REITs represent ownership in commercial real estate assets.

ALSO READ: REIT market cap to reach $25 billion in next 4 years with 38% surge, says report

The market regulator has reduced the exit load -- or the fee charged by fund houses from investors for redeeming their units before a specified period -- from the current 5 per cent to 3 per cent. 

Besides, distributors bringing in new investors from smaller towns will get incentives and additional commission for onboarding new women investors.

The regulator will enable more investors to qualify as strategic investors in REITs and infrastructure investment trusts (InvITs), enabling such trusts to get better access to capital. 

SEBI will establish offices aimed strengthening its outreach with investors and companies across the country. 

In the first phase of this initiative, it will open ofices in Chandigarh, Jaipur, Lucknow, Guwahati, Bhubaneswar, Vijayawada, Hyderabad and Bengaluru.

In the following phases, more offices will be added to this network. 

The regulator has mandated that two new executive directors be appointed at market infrastructure institutions (MIIs) like stock exchanges BSE and NSE. 

These EDs will supervise operations, and handle regulation and grievances, respectively.

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