Capital markets watchdog Sebi on Wednesday decided to provide relaxation to promoters for participating in stick to-on public give (FPO).
The board authorized a proposal to do away with the applicability of minimum promoters’ contribution norm and the subsequent lock-in specifications for the issuers producing FPO of specified securities, Sebi mentioned in a statement.
At present, promoters are mandated to contribute 20 per cent towards FPO. Besides, in case of any challenge of capital to the public, the minimum promoters contribution requirements to be locked-in for 3 years.
The regulator mentioned the relaxation would be offered for these firms which are regularly traded on a stock exchange for at least 3 years. Besides, these firms ought to have redressed 95 per cent of investor complaints.
The issuer corporation ought to also be in compliance with the LODR (Listing Obligations and Disclosure Requirements) Regulations for at least 3 years.
Besides, the board decided to provide specific exemptions to option investment funds (AIFs) in respect of investment committee members.
This is “conditional upon capital commitment of at least Rs 70 crore from each investor accompanied by a suitable waiver”, Sebi mentioned.
The board authorized the amendments to the norms governing intermediaries to stay clear of the duplicity of proceedings ahead of the designated authority and member.
Under the amendments, Sebi mentioned designated member, if expected, in the interest of justice, have to have to remit the matter to the designated authority, for factors to be recorded in writing, to enquire afresh or to additional enquire and resubmit the report.
The designated member may perhaps contemplate granting an chance of private hearing in a case exactly where either the designated authority has encouraged the cancellation of the certificate of registration of the intermediary, or the designated member.
The private hearing can be granted if the designated member is of the prima facie view that the matter at hand is a match case for cancellation of the certificate of the registration of the intermediary.
Also, the board has decided to repeal norms on the central database.
After the introduction of Permanent Account Number as the sole identification quantity for all securities industry transactions and the discontinuance of the requirement of Unique Identification Number issued below central database norms, Sebi mentioned such norms have outlived their utility.