SEBI TIGHTENS NORMS FOR VC FUNDS’ IPO

Sebi has tightened norms for offloading shares held by Venture Capital Funds (VCFs) and investors through an IPO to make the Indian primary market more efficient and transparent. The revised Disclosure and Investor Protection guidelines restricted the benefit of ‘No lockin’ on the pre-issue of shares of an unlisted company, launching the initial public offering on shares held by Venture Capital Funds and Foreign Venture Capital Investors (FVCIs). This no lock-in facility will hereafter be available to the shares held by VCFs and FVCIs, which are registered for at least one year.