Live News US7

Read the News

Subscribe

Live News US7

Read the News

Subscribe

Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Sebi SME IPO rules: Sebi may revamp rules for SME IPOs, Custodians

Mumbai: The Securities and Exchange Board of India (Sebi) is likely to discuss a number of proposals including revamping rules for initial public offerings of small and medium enterprises, changes to the framework for custodians such as doubling their minimum net worth to ₹100 crore from the current requirement of ₹50 crore and expanding the ambit of unpublished price-sensitive information. The Sebi board is scheduled to meet on December 18.

The board will consider whether to raise the minimum application size for the public offerings of small and medium(SMEs) to ₹2 lakh or even higher at ₹4 lakh from the existing ₹1 lakh. The proposed tightening of rules comes in the wake of instances of diversion of issue proceeds to shell companies controlled by promoters and inflation of revenue by circular transactions through related parties.

The regulator has suggested that smaller firms would be eligible for an IPO only if the issue size is over ₹10 crore and have an operating profit of ₹3 crore from operations for at least any two out of three financial years preceding the application. Further, it recommended limiting offer for sale by promoters to 20% of the issue size and disclosure of merchant bankers fees in the prospectus.

In the current financial year till October 15, 159 SMEs have raised more than ₹5,700 crore through IPOs. In FY24, there was the highest number of SME public issue with 196 firms tapping the market to mobilise over ₹6,000 crore.

The Sebi board will discuss revised rules for custodians as some of them such as networth requirement was fixed almost three decades ago.

The regulator thinks if the net worth is increased custodians would be better equipped to absorb losses and maintain operational stability.Custodians offer services such as safekeeping of assets, maintenance of securities accounts to clients likes foreign portfolio investors, mutual funds and alternative investment funds.At present, there are 17 custodians registered with Sebi. Assets under custody of custodians have increased to ₹278.50 lakh crore in September 2024 from ₹2.70 lakh crore in March 2002.

“Considering the increased scope of services and the exponential growth in the volume of business provided by custodians to its clients, custodians are prone to fraud and operational risks,” it had said in a discussion paper last month.

The regulator’s board would also consider changes to the definition of unpublished price sensitive information (UPSI)under insider trading norms. The move is aimed to bring uniformity in compliance by listed companies.

Any information relating to a company, that is not generally available but on becoming available affect the share price, is considered UPSI.

Sebi has proposed to include events such as revision in ratings, fund-raising activities, agreements impacting control of the company, frauds and resolution plan in the definition of UPSI.

Source link

Latest

Trump says ‘good chance’ of Ukraine ceasefire while Russia has caveats

Russian President Vladimir Putin speaks during a bilateral meeting...

BROCCOLI MUSHROOM ORZO BAKE — Sprouted Kitchen

BROCCOLI + MUSHROOM ORZO BAKE // Serves...

Karol G Hit With Copyright Lawsuit Over ‘Mañana Será Bonito’ Song

Karol G and Universal Music Group (UMG) are facing...

Newsletter

spot_img

Don't miss

Trump says ‘good chance’ of Ukraine ceasefire while Russia has caveats

Russian President Vladimir Putin speaks during a bilateral meeting...

BROCCOLI MUSHROOM ORZO BAKE — Sprouted Kitchen

BROCCOLI + MUSHROOM ORZO BAKE // Serves...

Karol G Hit With Copyright Lawsuit Over ‘Mañana Será Bonito’ Song

Karol G and Universal Music Group (UMG) are facing...
spot_imgspot_img

Trump says ‘good chance’ of Ukraine ceasefire while Russia has caveats

Russian President Vladimir Putin speaks during a bilateral meeting at the Grand Kremlin Palace, March 13, 2025, in Moscow, Russia. Contributor | Getty Images News...

BROCCOLI MUSHROOM ORZO BAKE — Sprouted Kitchen

BROCCOLI + MUSHROOM ORZO BAKE // Serves 6It’s like a mac n cheese-ish pasta bake but with some vegetables in it. My...