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Synopsis: SEBI needs to usher in reforms to make Indian public equity markets more attractive to investors and companies willing to issue IPOs (Initial Public Offer).
What is an IPO?
Whenever a company issues its shares first time to the public, it is known as Initial Public Offer (IPO). Issuing shares is a method of raising capital.
Eligibility criteria for companies willing to float an IPO.
- SEBI (Securities and Exchange Board of India) has a tougher criterion:
- Tangible assets of at least Rs 3 crore
- Exhibit average operating profits of Rs 15 crore in the preceding three years with no operating losses in any one of those years.
- Net worth of Rs 1 crore in each of the three preceding years.
Securities and Exchange Board of India
Source: TimesofIndia
