SEBI proposes e-IPO norms

India Infoline News Service | Mumbai | January 09, 2015 11:41 IST

Under the new norms, SEBI has proposed to drastically cut the timeline for listing of shares within 2-3 days of the IPO, as against 12 days currently

The Securities and Exchange Board of India, on Thursday, proposed e-IPO norms, where investors can bid for shares through Internet and eventually on mobiles, according to a media report.
SEBI has proposed a fast-track route for raising of funds through FPOs (follow-on public offers) or rights offers (where funds can be raised from existing shareholders), the report added.
Under the new norms, SEBI has proposed to drastically cut the timeline for listing of shares within 2-3 days of the IPO, as against 12 days currently.
SEBI has invited public comments till January 30, after which it would put in place final norms for e-IPO as also for fast-track issuances.
Investors would get SMS/e-mail alert for allotment under the IPO, similar to alerts being sent to investors for secondary market transactions.
SEBI has sought public comments on the following issues:
Should the requirement of having an abridged prospectus along with application form be made non- mandatory?
Should ASBA be mandated for all investors?
If ASBA is continued as a voluntary mechanism for retail investors, should it be made voluntary for non-retail investors as well?
Should NACH mechanism by NPCI be mandated for collecting payment from investors?
Any suggestions/modifications on the mechanism proposed above in order to achieve reduction in time and cost of capital raising?
 

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