With
a view to give further thrust especially primary markets, the
Securities and Exchange Board of India (SEBI) is considering to bring in
new measures including IPO and Offer for Sale, etc. These measures are
aimed at making easier for companies to raise funds at various markets.
Accordingly the SEBI board is meeting on Thursday in Delhi. It will also
deal with the issues pertaining to new guidelines for research
analysts, KYC norms for financial sector, proposed change in ESOP
regulations and minimum penalty provision and other issue. For quite
some time, the market regulator is proposing that the listed government
companies and PSUs have to have 25 per cent public holding. The today’s
board meeting will also to discuss the issue.The move will help the
government to rise close to Rs 60,000 crore through sale of excess
shares in about 38 state-run firms.This will be Sebi's first board
meeting since a new government led by Prime Minister Narendra Modi
assumed office last month.The board will also be apprised of the
elaborate contingency plan put in place by Sebi during recent general
elections. A strong vigil mechanism was put in place by Sebi, while RBI
was also roped in to implement these measures.
With regard to primary
market reforms, the Securities and Exchange Board of India (Sebi) has
proposed relaxing the restrictions on sale of bonus shares held by
promoters or other investors during an Initial Public Offering (IPO).
Another proposal before the board is expanding the framework of Offer
for Sale (OFS) mechanism for selling shares. Since OFS route was
introduced in February 2012 more than 100 companies have sold shares
through this mechanism to mop-up close to Rs 50,000 crore.
After
extensive discussions with stakeholders, Sebi has also finalised
elaborate norms for 'research analysts' to ward off any conflict of
interest in their activities. The draft regulations in this regard are
expected to be approved by the board during the meeting. It will also
discuss the developments in the derivatives market.
