EDEN IAS

NEWS IMPULSE -FOLLOW-ON PUBLIC OFFERS| 20 JANUARY

Syllabus Section: Economy

 

Why in News?

SEBI eases norms for follow-on public offers.

 

About:

• The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been removed.

• Earlier, promoters were mandated to contribute 20% towards a FPO.

• Besides, in case of any issue of capital to the public, the minimum promoters’ contribution was required to be locked-in for three years.

• Relaxation would be available for those companies which are frequently traded on a stock exchange for at least three years.

• Also, such firms should have redressed 95% of investor complaints.

 

The Securities and Exchange Board of India (SEBI)

• It is the regulator of the securities and commodity market in India owned by the Government of India.

• It was established in 1988 and given statutory status through the SEBI Act, 1992.

• SEBI is responsible to the needs of three groups:

o Issuers of securities

o Investors

o Market intermediaries

 

Source: The Hindu

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