Advertisement

HindustanTimes Sat,20 Sep 2014

Sebi boost for investors

HT Correspondent, Hindustan Times  Mumbai, August 16, 2012
First Published: 20:59 IST(16/8/2012) | Last Updated: 07:38 IST(17/8/2012)

Markets regulator Securities and Exchange Board of India (Sebi) on Thursday introduced a slew of measures to regulate financial and capital markets and increase investor participation.

The regulator proposed an e-IPO system among other reforms that it hopes will galvanise the mutual fund industry.

Advertisement

SEBI chairman UK Sinha said: "The board discussed and approved some far-reaching reforms that include steps for expanding the reach of IPOs and MFs across the country."

SEBI said in a statement: "To widen the distribution network of IPOs, in addition to existing channels, the nationwide broker network of stock exchanges will be made available for distributing IPOs in electronic form.

Investors can approach any broker in these locations for applying in IPOs, either physically or electronically."

There is good news for promoters as well: Sebi has opened up two more avenues for company promoters to dilute shares to increase public holdings to a minimum 25% - bonus shares and rights issue.

Sebi also hinted that further leeway could be provided on a case-to-case basis.

The regulator has raised the minimum retail application from the present Rs. 5,000- Rs. 7,000 to Rs. 10,000- Rs. 15,000 in a bid to ensure that every retail applicant gets a minimum allocation of shares.

However, on the flipside, this will effectively limit the number of investors.


http://www.hindustantimes.com/Images/Popup/2012/8/17-08-biz1.jpg


Advertisement
more from Business

Larry Ellison steps down as Oracle CEO after 37 years

Larry Ellison, co-founder and leader of Oracle Corp for 37 years, stepped aside as chief executive officer on Thursday, to be replaced by co-CEOs Safra Catz and Mark Hurd, raising questions about a job-sharing arrangement that has had a fraught record elsewhere.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved