Market regulator SEBI has proposed uniform guidelines for all classes of foreign investors, a step aimed at simplifying investment process for overseas entities and strengthen surveillance over them. At its board meeting in Mumbai yesterday, the Securities Exchange Board of India, SEBI decided to prepare draft guidelines with an aim to make uniform rules for different classes of foreign investors such as Foreign Institutional Investors, NRIs, Foreign Venture Capital Investors and Qualified Financial Investors. SEBI said in a statement after the Board meeting that draft guidelines would be based on the recommendations of the Working Group on Foreign Investment in India for consideration of the Government so that uniform guidelines are made for various categories of investors.

SEBI also relaxed its rules regarding the debt limit allocation mechanism for Foreign Institutional Investors, which have emerged as a significant force to the Indian capital market over the years.

he government-appointed panel on financial sector reforms has suggested creation of a Unified Financial Authority (UFA) to bring all regulators under one umbrella. The Financial Sector Legislative Reforms Commission (FSLRC), in its Approach Paper, presented to the government recently, proposed to bring in SEBI, IRDA, PFRDA and Forward Markets Commission under the UFA. Talking to reporters in New Delhi, the Commission's Chairman former Justice B N Srikrishna expressed the hope that the proposed reforms will strengthen the Indian economy. Replying to questions, Justice Srikrishna said that the Commission is seeking feedback on its proposals from all the stakeholders by 31st of this month. He said the Commission will submit its final report by 24th of March 2013.

Capital market regulator, SEBI, today said it will question top officials of fund houses about non- performance of mutual fund schemes and probe their non-compliance with the stated investment objectives.

Concerned over the non-performance of some schemes over a long period of time, Securities and Exchange Board of India (SEBI) Chairman U K Sinha, said that fund houses need to look into the matter and consider merger of some schemes. Speaking at a CII mutual fund summit in Mumbai today, Mr. Sinha also said that the regulator would conduct inspection on Asset Management Companies (AMCs) for not following rules with regard to the fund objectives.

AIR correspondent reports, every mutual fund scheme has a stated investment objective and they are supposed to invest accordingly.

Capital market regulator, SEBI today said both public and private sector companies will have to increase public shareholding to a minimum of 25 per cent by August 2013 and there will be no relaxation of the guidelines. SEBI Chairman Mr. U K Sinha told this to reporters on the sidelines of Bombay Stock Exchange function in Mumbai today.

There are 181 non-PSU firms that do not meet the minimum shareholding norms, he said, adding that around 27,000 crore rupees will have to be mobilised by June 2013. He also said that sixteen PSUs will have to mobilise 12,000 crore rupees.

He said that SEBI will come out with the guidelines on MIMPS (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) in the next two months.

Clearing the decks for listing of stock exchanges, capital market regulator SEBI on Monday said 51 per cent stake of bourses could be held with public. This was decided after considering the much-debated Bimal Jalan Committee recommendations which had not favoured listing of stock exchanges.

The Board, however, in its meeting in Mumbai accepted several other recommendations of Jalan Committee on Review of Ownership and Governance of Market Infrastructure Institutions, MIIs.

The stock exchanges will have diversified ownership and no single investor will be allowed to hold more than 5 per cent except the stock exchange, depository, insurance company, banking company or public financial institution which may hold upto 15 per cent. 51 per cent of the holding of the Stock Exchanges will be held by public, the market.

The stock exchanges may be permitted to list when they put in place the appropriate mechanisms for tackling conflicts of interest, it said, adding, the stock exchanges will not be allowed to list on itself.

No stock exchange shall be permitted to list within 3 years from the date of approval by SEBI.