INSUBCONTINENT EXCLUSIVE:
SEBI has actually authorized tightening of norms for usage of proceeds from IPOsMumbai: Markets regulator Securities and Exchange Board of
India (SEBI) has authorized tightening of rules for use of profits from preliminary public offers (IPOs), even as it cleared a series of
changes in various guidelines
The relocation has actually come at a time when more than 60 public issues have hit the main market in 2021 and business have raised more
than Rs 1.18 lakh crore through them.SEBI has actually decided to limit the quantum of issue proceeds a business can use for unidentified
inorganic growth.The modifications were effected throughout the conference of the regulator's board, which was held in Mumbai on
Tuesday.Amendments will also be effected to cap the number of shares that can be used by offering shareholders and to increase the lock-in
duration for shares subscribed by anchor investors.The market regulator likewise decided to put a cap on the usage of issue earnings for
unknown future acquisitions and limited the variety of shares that can be used by selling shareholders.SEBI chairman Ajay Tyagi asserted
that the regulator has no intention to control the prices of IPOs in any way
We are not into approving the rates IPOs or getting into IPO valuation
What I stated recently was that whatever is the rate got to that should be better disclosed in the offer file
Moreover price discovery is a function of the market, and that is how it works internationally too
Cost discovery is a function of the market which is how it works globally also, Mr Tyagi clarified while addressing an interview after the
board meeting.The regulator has actually likewise chosen to bring under tracking, the funds scheduled for general business purposes and
extended anchor investors' lock-in period to 90 days.SEBI has likewise chosen to modify the allocation method for non-institutional
Apart from this, changes have actually also been cleared for regulations governing foreign portfolio financiers, alternative investment
funds (AIFs), shared funds, settlement proceedings and others.SEBI has likewise chosen to present provisions relating to consultation or
re-appointment of persons who fail to get chosen as directors, consisting of as whole time directors or managing directors or supervisors,
at the basic conference of a noted entity
Appointment or a re-appointment of any person, consisting of as a Managing Director or a Whole Time Director or a Supervisor, who was
earlier turned down by the investors at a general conference, shall be done just with the prior approval of the shareholders, SEBI said in
