The Finance Ministry on Friday notified the New Format of ‘Annual Report’ for Security and Exchange Board of India (SEBI).
An amendment to the Securities and Exchange Board of India (Annual Report) Rules, 2021 aims at reworking the new format is re-arrangement of contents to be presented. Also, income and expenditure will be required to be part of the annual report as against the existing provision of presenting annual account statements separately.
As per the amended rules and format, some significant changes are introduced in the income and expenditure section considering the recent spar between the Government and the regular over transfer of surplus funds.
However, official term the mentioning of accounts as routine exercise and they say effort is to bring more and more details in the annual report.
As per the new rules there are 13 chapters in the new format. Each chapters contains a comprehensive study and analysis about the existing financial market, primary market and secondary market. The rules further includes the norms for fund management activity (Mutual Fund, Alternative Investment Funds, Collective Investment Schemes, Real Estate Investment Trusts and Infrastructure Investment Trusts).
Also, the rules provides insight about Foreign Portfolio Investors and Foreign Venture Capital Investors.
Chapter seven, eight and nine of the amended rules deals with Credit Rating Agencies, Protection of Investor Interests and Technology respectively.
Chapter ten of the amended rules provides significant changes as it will chart out all details about Regulatory Action, Supervision and Enforcement. This chapter will also discuss progress or impact assessment of the new regulations/rules introduced during last year, which is important to evaluate rules and regulations formulated during any year.
Chapter eleven (International Engagements) and chapter twelve (National Institute of Securities Market) are routine ones.
The last chapter, dealing with organisational matters has one important section about income and expenditure of the regulator. It may be noted that unlike RBI, SEBI presents its annual statement of account separately from its annual report.
However, as per the old format, SEBI, in its annual report, used to distribute entire content into four parts namely Polices & Programmes, Trends and operations in the Securities Market, Functions of the SEBI with respect to matters assigned under the law & regulatory actions and Organizational Matters.
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