New Delhi, 12 September (IANS). The capital market regulator Indian Securities and Exchange Board (SEBI) is scheduled to hold a board meeting on Friday. In this, the rules related to making the rules to save stake for large companies in IPOs and allocation to anchor investors can be discussed.
SEBI board may change the rules of selling stake in an Initial Public Offering (IPO) for large companies. Apart from this, SEBI can also expand the deadline to complete the minimum shareholding after IPO.
Companies whose market capitalization is more than Rs 5 lakh crore after IPOs may require a minimum of 2.5 percent under public float to maintain a minimum of Rs 15,000 crore plus 1 percent float.
According to the report, companies worth Rs 1 lakh crore to Rs 5 lakh crore in IPO may have to issue at least Rs 6,250 crore and 2.75 percent shares. Depending on their shareholding levels, they may get up to 10 years to complete the minimum public shareholding mandate.
The board is planning to increase the number of anchor investors for IPOs, in which the reserve allocation will be increased from 33 percent to 40 percent by adding insurance and pension funds to the mutual funds. For IPOs with an issue size of Rs 250-500 crore, it is proposed to increase the number of anchor allottees from 25 to 30.
The meeting is also likely also likely to take steps such as to simplify compliance for foreign portfolio investors (FPI), make rules easier for recognized investors in some alternative investment funds (AIFs), to increase the scope of activities for rating agencies and to take steps like equity to the Real Estate Investment Trust (REIT) and Infrastructure Investment (Input).
According to reports, SEBI can issue a consultation paper when the weekly Futures and Options (F&O) contracts are terminated in a phased manner.
The regulator is planning to move towards a monthly expiry with a certain plan and can also consider implementing the ending of the same day in all stock exchanges.
-IANS
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