Sebi Mulls Steps to Fire Up Dalal Street

The Securities & Exchange Board of India plans to increase the minimum application amount for public issues to.15,000 from.10,000,and make it compulsory for companies to at least allot shares worth this amount to retail investors. The move is part of a slew of measures being contemplated by the stock market regulator to revive the market for primary issues while protecting the interests of investors. Some of the major decisions likely to be approved by the Sebi board at its August 16 meeting include increasing the minimum application amount by 50%,halving the bidding period for public offerings to five days, making the object clause of prospectuses of issuing companies more specific, and tightening guidelines for IPO-bound companies that don't have a track record of profits. The regulator also plans to allow investors to apply for IPOs and follow-on public offers (FPOs) online, and use credit and debit cards for e-payment of application money. Primary issues constitute an important fund-raising mechanism for companies. But subdued market conditions have resulted in 51 IPOs being called off since January 2011.MCXs.663-crore issue is the only decent-sized public offering that has gone through in recent times.

Economic Times, New Delhi, 13-08-2012

 

 
     
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