SEBI eases rules for FPIs to raise money via IPOs

Regulator Sebi on Friday approved a slew of measures to further improve the ease of doing business for market participants, including providing relaxations to Foreign Portfolio Investors (FPIs) and entities looking to raise funds through initial share sale. The proposals were cleared by the Sebi board during its meeting on Friday.

Among others, the watchdog has decided to do away with the requirement of one per cent security deposit in public/rights issue of equity shares and also provide flexibility in extending the offer closing date due to force majeure events, Sebi said in a release.
These measures are part of efforts to facilitate the ease of doing business for companies coming for IPOs and fundraising. The board has also given its nod to relax the timelines for disclosure of material changes by FPIs.

“Taking into account stakeholder feedback, the board approved the launch of a Beta version of optional T+0 settlement, for a limited set of 25 scrips, and with a limited set of brokers.
“In parallel, Sebi shall continue to do further stakeholder consultation, including with the users of the Beta version,” the release said.

Ashish Sinha

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