SEBI Board approves changes to rules that govern Offer For Sale mechanism.
Any investor wishing to avail of Offer For Sale mechanism can do so if they offer shares of at least Rs 25 crore.
Currently, non-promoter shareholders holding at least 10% of share capital offering shares worth at least Rs 25 crore can avail of OFS route.
Cooling off period of +/- 12 weeks for OFS has been reduced to range of +/- 2 weeks to +/- 12 weeks.
Retail investors have been allowed to bid for the unsubscribed portion of non-retail segment.
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 approved amendment to facilitate faster payment of redemptions, dividends by Mutual Funds.
SEBI board proposes that MFs pay out redemption in 3 working days vs current 10 days
Also proposes MFs pay out dividends in 7 working days vs current 15 days
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.
SEBI Board says online bond platform providers to register as stock brokers with SEBI.
To reduce face value of listed debt securities.
Disclosure of key performance indicators and price per share of issuers based on past transaction during the past 18-months.
Modification in framework for offer for sale. Cooling off period of 12 weeks reduced to range of 2-12 months.
CRAs made monitoring agencies for utilisation of issue proceeds via preferential issues and QIP.
Modifies insider trading guidelines to include MF units.
SEBI Board Meeting Today: IPO Filing Norms, Insider Trading In Mutual Funds On Agenda