Quick Summary
The markets regulator on 28/12/2021 (Tuesday), tightened rules for initial public offerings. SEBI has aimed at tackling regulatory gaps and extreme stock price volatility on their trading debut. In the year 2021 Indian companies have raised Rs. 1.19 trillion through IPOs with 63 companies going publ
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FAQ :
The main goal is to tackle regulatory gaps and extreme stock price volatility experienced on the trading debut of IPOs.
Companies can now use only 35% of the total proceeds for inorganic growth objectives where the acquisition or investment target remains unidentified.
Credit Rating Agencies registered with SEBI will be permitted to act as Monitoring Agencies, replacing Scheduled Commercial Banks and Public Financial Institutions.
Anchor investors can sell only 50% of their shares after one month, with the remaining 50% available for sale after 90 days.
Yes, those holding over 20% of pre-issue shares can offer a maximum of 50% of their holding in an offer for sale. Selling shareholders holding less than 20% can offer no more than 10% of their pre-issue shareholding.
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