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SEBI makes IPO rules stricter for small firms, overhauls investment banking norms
The board has also green lit an expanded definition of Unpublished Price Sensitive Information (UPSI).
The Securities and Exchange Board of India (SEBI) board approved a series of measures on Wednesday, including stricter regulatory norms for small and medium enterprises' (SME) IPOs.
The board has also green lit a comprehensive overhaul of investment banking regulations, and an expanded definition of Unpublished Price Sensitive Information (UPSI).
The board has decided to introduce profitability criteria for companies planning to come out with an Initial Public Offering (IPO), put a limit on offer-for-sale (OFS) and introduce phased lock-in for promoters.
To curb conflicts of interest, merchant bankers cannot lead-manage public issues if key personnel hold more than 0.1 per cent of the issuer's shares.
In a statement after the board meeting, SEBI has decided to introduce specific timelines for fund deployment in New Fund Offers (NFOs) and ease compliance burdens for employees of Asset Management Companies (AMCs).
A proposal has been cleared for establishing an agency for verifying risk-return metrics for entities like investment advisors and algorithmic traders.
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