Sebi sets up panel on hybrid securities

The committee has been given the task of advising Sebi on issues related to development and regulation of primary and secondary markets of hybrid securities in the country.

Further, it will identify use case scenarios of hybrid securities in the context of the infrastructure financing needs of the Indian economy and make recommendations for developing instruments to meet the needs of the infrastructure sector. Also, the panel will make recommendations on infrastructure financing through capital markets.

The panel will also be responsible for making suggestions to facilitate greater retail participation in hybrid securities while ensuring protection of interest of investors and making recommendations for developing engagements with various stakeholders including creating more awareness about hybrid securities amongst investors.

While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out, InvITs comprise a portfolio of infrastructure assets, such as highways and power transmission assets.

Besides, Sebi has reconstituted its research advisory committee, which is responsible for promotion, development, maintenance of databases relevant for capital market regulation research.

The 16-member panel will be headed by V Ravi Anshuman, Professor at IIM Bangalore. Also, Madan Sabnavis, Chief Economist, Bank of Baroda, Pawan Agrawal, Chief Risk Officer at Crisil, Sudhir Bassi, Executive Director at Khaitan & Co and H K Pradhan, Professor of Finance and Economics at Xavier School of Management (XLRI) are the other members of the panel.