PTI New Delhi

SEBI and the Reserve Bank of India are in discussions on corporate bond index derivatives to strengthen trading activity in corporate debt securities, Sebi whole-time member Ananth Narayan G said on Friday.

Speaking at the ASSOCHAM National Council for Corporate Bonds, Narayan said, "Corporate bond index derivatives trading is another frontier in this regard. Good discussions are ongoing between Sebi and RBI, and we are hopeful that we will see progress soon." He pointed out that secondary bond volumes are about Rs 1.4 lakh crore a month, while equity markets trade around that much in a single day. If bond trading can be made more comparable to equity trading-- in terms of settlement, platforms, and even trading culture - the investment class could see significant growth, he added.

In 2023, Sebi allowed stock exchanges to launch derivative contracts on indices of corporate debt securities rated AA+ and above, but the move failed to gain traction.

On the municipal bonds front, Narayan noted that from 2017 till date, there have been just 16 issuances raising Rs 3,134 crore, a mere 0.02 per cent of GDP. "The potential here is immense, but so is the need for capacity building and investor confidence," he said. Sebi simplifies process of transferring securities from nominee to legal heir

Sebi on Friday simplified the process of transferring securities from a nominee to the legal heir. Currently, when a nominee transfers securities to a legal heir, the transaction may sometimes be treated as a "transfer" and assessed for capital gains tax. However, under Section 47(iii) of the Income Tax Act, 1961, such transmission is exempt and should not attract tax. While the nominee can claim a refund later, this causes unnecessary inconvenience.

Sebi allows more charitable entities to raise funds via SSE

Sebi on Friday permitted more charitable entities to raise funds through the Social Stock Exchange (SSE), in a bid to broaden access to the platform. In its latest circular, the regulator has widened the definition of Not-for-Profit Organizations (NPOs) eligible to list on the SSE. 

Under this expanded framework, legal structures such as trusts registered under the Indian Registration Act, 1908, charitable societies registered under the relevant state's Societies Registration Act, and companies registered under section 25 of the erstwhile Companies Act, 1956, will now fall within the definition of NPOs.

Zelio E-Mobility gets Sebi nod for Rs 78-cr IPO

Zelio E-Mobility Ltd on Friday said it has received approval from capital market regulator Sebi for its SME IPO to raise Rs 78 crore. The company has already got the DRHP approval.