New Delhi: Market Regulator Sebi has reduced the minimum locking period for promoter investment for the initial public offering (IPO) up to 18 months from three years, under certain conditions.
This step occurs when many companies want to register on the Stock Exchange.
In addition, the effect and Exchange Board of India (SEBI) have streamlined the group disclosure requirements.
In a notification, Sebi said that if the object of this problem involves dealing-for sale or finances in addition to capital expenditure for a project, the minimum promoter contribution of 20 percent will be locked for 18 months from the date of allotment at the IPO.
At present, the key period is three years.
Capital expenses include civil work, other fixed assets, land purchases, buildings and plants and machines, among others.
Furthermore, the locking period for the promoter share ownership is more than a minimum of 20 percent has also been reduced from one year for up to six months.
The regulator has also reduced the minimum locking of the pre-IPO securities held by people besides promoters for up to six months from the date of allotment.
There is a one-year locking period at this time.
Apart from this, the regulator has reduced disclosure requirements during the IPO.
Disclosure requirements in the bidding document, in connection with the company’s group of publishers, has been rationalized to exclude financial disclosure of 5 registered or unregistered group companies.
This disclosure will continue to be available on the group company website.
“In the case of publishers do not become a government company, legal authority or corporations or special purpose vehicles established by one of them, the name and registered office addresses of all group companies must be disclosed in bidding documents,” Sebi said.
In the notification on August 13.
To effect on this matter, SEBI has changed the rules of ICDR (capital issues and refiners).
This happened after the SBI Board approved a proposal in this matter earlier this month.