Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Stock-market-news/  Sebi provides clarity on preferential issues, anchor investors
BackBack

Sebi provides clarity on preferential issues, anchor investors

Sebi says revised norms will be applicable prospectively from 25 August when the amended regulations came into force

Sebi has issued the clarification “in order to remove any difficulties in the application or interpretation” of the amended norms. Photo: Hindustan TimesPremium
Sebi has issued the clarification “in order to remove any difficulties in the application or interpretation” of the amended norms. Photo: Hindustan Times

Mumbai: Providing more clarity, Securities and Exchange Board of India (Sebi) on Thursday said revised norms related to anchor investors and preferential share issues would be applicable prospectively from 25 August when the amended regulations came into force.

In a circular, the capital market regulator said that new preferential issue norms would be applicable to issues where notice for the shareholders meeting was given by the company “on or after the date of notification" of the amended rules.

Besides, Sebi has clarified that new anchor investor allocation would be applicable to companies which have filed offer documents with the Registrar of Companies (RoC) “on or after the date of notification" of the rules.

Sebi has issued the clarification “in order to remove any difficulties in the application or interpretation" of the amended norms.

Aiming to revive the primary markets, Sebi had on 25 August notified regulations concerning pricing of preferential shares, among others, and had also increased the anchor investor’s bucket to 60% from 30%. The new norms fall under Sebi (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014.

“The new and revised regulations...on preferential issue, shall be applicable for the preferential issuances where notice for the general meeting for passing of special resolution by the shareholders is issued on or after the date of notification of Sebi (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014," Sebi said in a circular on Thursday.

“The revised sub-regulation...on anchor investor allocation, shall be applicable to issuers filing offer documents with the Registrar of Companies on or after the date of notification of Sebi (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014," the market regulator added.

Sebi board in its meeting held on 19 June, 2014 had undertaken review of the extant regulatory framework in the primary market and approved certain reforms to revitalise the market including increasing the investment bucket for anchor investor and making certain amendments to regulations concerning the preferential issue norms. PTI

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 11 Sep 2014, 07:55 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App