Markets regulator SEBI is planning to improve provisions related to IPO rules, especially book building, its fixed-price aspect and price bands. Apart from the IPO, SEBI also wants to improve on the issue of preferential issues. SEBI Chairman Ajay Tyagi disclosed these intentions of the market regulator at FICCI’s Annual Capital Market Conference. He said that in the near future, the emphasis will be on reviewing the rules related to raising funds through equity.
SEBI said the mechanism for raising funds is being reviewed
He said that the way of raising funds has changed in the last few years. SEBI has been continuously reviewing its existing arrangements for various fundraising modes for some time now. Many important changes have taken place in the last two years. These mainly include issues related to Right Issue Preferential Share. The SEBI chief said that the minimum public shareholding rules have been amended to make it easier for large companies to go for IPOs. Till now the requirement of Minimum Public Share Holdings is 25 percent whether it is promoter company or public shareholders. We do not intend to combine the two or increase the minimum shareholding limit of 25 percent. Also, the IGP (Innovators Growth Platform) framework has been further relaxed to enable the listing of startups.
There are shortcomings in disclosure of companies: Sebi Chief
SEBI Chief Ajay Tyagi said that there are shortcomings in the matter of disclosure of companies. He said that companies should not take disclosure as a check box. As per SEBI norms, there are two sets of information furnishing by the listed companies. Is the information or disclosure to be given at intervals of a fixed period for which the format is decided by SEBI. The second ‘important’ thing is in the form of information. In this, some events and things are considered important information, which is necessary to give public information. But it seems to be lacking. He said that the mandatory information provided by the listed companies should not be treated as a ‘check box’ or information list on the basis of which a yes and no decision is taken. He said that in some areas there has been a lack of information given by many companies.