SEBI Changes Rules For IPOs, Lock-In Period For Investors | Read Key Points Here
SEBI Changes Rules For IPOs, Lock-In Period For Investors | Read Key Points Here
SEBI will also make changes in regulations on listing obligations and disclosure requirements for issuance of securities in dematerialised form in case of investor requests for the issue of duplicate shares to improve the ease, convenience and safety of transactions for investors.
SEBI News: Madhabi Puri Buch was also the also the first woman full time member of SEBI
New Delhi: In a board meeting on Tuesday, Securities and Exchange Board of India (SEBI) tightened certain rules for initial public offerings (IPOs) and extended anchor investors lock-in period to 90 days. In order to rationalise settlement proceeding norms, the market regulator also change the time period for filing settlement applications by entities to 60 days from date of receiving show-cause notice, and further decided to cap amount a majority investor can sell in share sale.
Key decision taken in SEBI’s bored meeting
Time period for filing settlement applications by entities will be 60 days from the date of receipt of the show-cause notice or a supplementary notice, whichever is earlier. In this regard, changes will be made to the settlement proceedings regulations, which had come into force from January 1, 2019.
The time period for submission of revised settlement terms form, after the Internal Committee (IC), will be rationalised to 15 days. This will be from the date of the IC meeting.
The time period for remittance of the settlement amount and compliance with all the settlement terms will be rationalised. All payments under the settlement regulations will be accepted only through a dedicated payment gateway.
Separate guidelines dealing with the procedure to be adopted for arriving at suitable terms pursuant to the filing of a compounding application will be issued.
The amendments would also provide clarifications of certain provisions relating to the condition precedent for settlement, non-monetary terms, provisions relating to irregularity in the procedure, settlement scheme and legal costs, in the settlement process.
In order to bring uniformity in the settlement regulations, certain substitutions or insertions or omissions or consequential amendments will also be carried out
Amendments have also been approved to regulations governing Foreign Portfolio Investors (FPIs). This will enable SEBI to generate unique registration numbers of FPIs on receiving the basic details of the applicants seeking FPI registration from either of SEBI-registered depositories.
SEBI will also make changes in regulations on listing obligations and disclosure requirements for issuance of securities in dematerialised form in case of investor requests for the issue of duplicate shares to improve the ease, convenience and safety of transactions for investors.
From April 2022, 33 per cent of shares allocated to non-institutional investors will be reserved for investors with application sizes ranging from Rs 2 lakh to less than Rs 10 lakh. The remaining, two-thirds of the portion, will be earmarked for applicants whose application size exceeds Rs 10 lakh.
Lock-in period for promoters and non-promoters has been reduced. Promoters are permitted to pledge locked-in shares subject to certain conditions. Lock-in of 30 days shall continue for anchor investors for a 50 per cent portion. The new lock-in rules for anchor investors will become applicable from the new financial year.
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts Cookies Policy.
English
