ForumIAS LATEST
- 04 June | MGP Strategy Series | GS Paper 4 (Ethics) with AIR 7 A.R. Rajah Mohaideen Click Here to register for the session →
- 04 June | GS Advance Program begins from 4th June 2026 | First 2 classes open to all Click Here to register for the event →
- 05 June | MGP Strategy Series | GS Paper 3 Strategy Session with AIR 406 Mannat Luthra Click Here to register for the session
- 06 June | Open Orientation on Essay Guidance Program (EGP 2026) Click Here to register →
- 07 June | Open Orientation for Current Affairs for Mains 2026 Click Here to register →
- 07 June | Sociology Optional Strategy Session with AIR 10 Ujjwal Priyank Click Here to register →
SEBI eases norms for share buy-backs, IPOs
News
- The Securities and Exchange Board of India (SEBI) has amended the rules related to public issues, takeovers and buy-backs based on feedback received from various market participants.
Important facts
2. Proposed changes for IPO
- Give companies more time for the upward revision of open offer price and to announce the price band for an initial public offer (IPO).
- A company can now announce the price band two days before the opening day of IPO instead of the earlier requirement of five days.
- Financial disclosures now need to be mentioned only for three years instead of five
- Companies making a rights issue have to submit a draft document only if the issue size is more than ₹10 crore. Currently, the threshold limit in such cases is ₹50 lakh.
- Disclosure requirements related to group companies have been made more specific in the SEBI (Issue of Capital and Disclosure Requirements) Regulations.
3. For IPO’s by SME
- The minimum anchor investor size has been reduced to ₹2 crore from the existing ₹10 crore.
- Insurance companies and foreign portfolio investors have been allowed to participate as anchor investors in main board IPOs.
- The regulator has also brought parity in terms of shareholding limits for domestic and foreign entities in stock exchanges, clearing corporations and depositories.
- This would allow eligible foreign and domestic entities to hold up to 15% stake in such market institutions. Until now, only a select set of investors were allowed to hold 15% stake in exchanges and depositories.
- Amend the norms related to the tenure and directorships of managing directors and public interest directors (PID) of SMEs.
- A person can serve as the MD for two terms of five years each or up to 65 years of age.
- For a PID moving from one market institution to another a one-year cooling period would be mandatory.
4. SEBI will also release new norms for enhanced monitoring and supervision of market intermediaries, especially registrar and transfer agents (RTA).
