Thursday, December 15, 2011

Rs 5-CR MINIMUM ALLOTMENT PROPOSED FOR ANCHOR INVESTORS IN PUBLIC ISSUES

The Securities and Exchange Board of India (SEBI) has decided to prescribe a minimum allotment size of  Rs 5 crore for anchor investors in public issues. SEBI also decided to prescribe a maximum number of anchor investor's slab- wise. The regulator has decided to specify a maximum tenor of 12 months for warrants issued along with public and rights offerings to prevent their possible misuse.
Issuers would be required to provide details of fund utilisation both in the offer document and on a
continuous basis. A separate set of disclosures for venture capital and Private Equity (PE) funds that form part of a promoter group in investee companies will be prescribed. This is to do away with the constraints of investee companies regarding disclosure about these PE/VC funds. The SEBI board has doubled the net worth requirements for debenture trustees from Rs one crore to Rs two crore. This is to be done over two years. SEBI has also mandated that listed entities submit business responsibility reports as part of their annual reports in line with the key principles spelt out by the Ministry of Corporate Affairs (MCA).

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