SEBI board approves amendments to regulations governing REITs.
Minimum holding requirement of REIT sponsors and sponsor groups of total outstanding units of REIT on post-initial offer basis reduced to 15% from 25%.
SEBI board approves alternative method for appointment of independent directors for their first term.
Under alternative method, if special resolution for appointment does not get requisite majority, thresholds for ordinary resolution and majority of minority shareholders can be tested.
If the resolution crosses the alternative thresholds in the same voting process, the appointment can be deemed as approved by shareholders.
The same threshold will be applicable for removal of independent director that is appointed under this mechanism.
SEBI Board approves proposal to introduce pre-filling of offer document as an optional alternative mechanism for IPOs on the main board of stock exchanges.
Pre-filling mechanism allows issuers to carry out limited interaction without making sensitive information public.
SEBI’s initial observations to be made available to investors for at least 21 days.
Existing mechanism of processing offer document to continue in addition to alternative.
SEBI board says IPO issuers must disclose key performance indicators, price per share based on past fund raising.
IPO issuers will now have to disclose price per share based on transactions done in 18 months prior to issue.
If no transactions are done in 18 months, details of last five primary or secondary transactions not older than three years from issue date will be sought.
Issuer companies must also disclose weighted average cost of acquisition; the IPO floor price, cap must be displayed as multiple of weighted average cost of acquisition.
Issuer companies’ committee of independent directors shall recommend that price band of issue is justified based on qualitative factors.
