InvestorQ : How do you see the SEBI relaxing the IPO norms helping the Indian markets and the issuers?
indhumathi Sayani made post

How do you see the SEBI relaxing the IPO norms helping the Indian markets and the issuers?

Answer
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shrinidhi Rajan answered.
5 months ago


SEBI has temporarily eased some fund-raising regulations for listed entities to give them easier and faster access to capital markets. That is because the COVID-19 pandemic has sharply reduced the IPO activity to a virtual trickle. Here are some of the major shifts. SEBI reduced the required average market capitalisation of public shareholding required to Rs.1 billion from Rs.2.5 billion and minimum period of listing to 18 months from 3 years. In addition, SEBI also lowered the minimum subscription required for a rights issue to 75% of the offer size from 90%. This will allow promoters of a company to increase their stake as stock prices have corrected significantly due to COVID-19. In an additional relaxation, SEBI also stipulated that issuers whose offer documents are pending SEBI’s observations up to Dec. 31, 2020 would be allowed to increase or decrease the issue size by up to 50%, without having to submit a fresh draft offer document.