SEBI e x p a n d s investor participation in idrs

The Securities and Exchange Board of India had made a slew of amendments to its Disclosure & Investor Protection (DIP) norms. The market regulator has now allowed retail investors to participate in Indian Depository Receipt (IDR) issues after half the issue is subscribed by Qualified Institutional Buyers (QIBs). The regulator has reduced the minimum application value in IDRs from Rs. 2 lakh to Rs. 20,000. Previously, only QIBs could apply in IDR issues. SEBI also permitted companies to make public issues of securities to retail investors and retail shareholders at a discounted price. However, such discounts should not exceed 10% of the price at which the securities are issued to other categories of investors.