Saturday, November 14, 2009


The Securities and Exchange Board of India has proposed changes to the way public share offerings
are done, spelt out guidelines for smaller companies to raise capital through share sales, and called for more disclosures from listed companies to prevent delayed shocks in the form of holes in the books of accounts.

  • Companies listed on SME exchanges to be exempted from eligibility norms applicable for IPOs & FPOs
  • Minimum IPO application size and trading lot for small and medium enterprises to be Rs.1 lakh
  • Companies wanting to list on SME platform should have maximum Rs.25 crore paid-up capital. For listing on NSE and BSE, minimum paid-up capital of Rs.10 crore to be required
  • Shares reserved for a company’s employees in public issues will have a ceiling of Rs.1 lakh on the value of allotment per employee
  • All listed entities, with subsidiaries, have an option to submit consolidated financial statements as per IFRS, but these entities will have to continue filing their standalone results as per Indian GAAP
  • Companies have to give half yearly disclosure of balance-sheet items with audited figures or unaudited figures with limited review
  • Companies will mandatory disclose audited results within 45 days of the end of the quarter. Results have to be disclosed within 60 days for those companies that opt to submit annual audited results on a stand-alone basis


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