InvestorQ : What are the major changes that SEBI is planning to make on IPO rules?
indhumathi Sayani made post

What are the major changes that SEBI is planning to make on IPO rules?

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4 months ago
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While SEBI has not made any announcement on the modified rules, these were the indications given by the SEBI Chairman at his FICCI keynote address earlier this week. Apparently, SEBI is seriously considering restructuring IPO and preferential issue norms to make it more in tune with the changing structure of the market and fund raising. Recently, SEBI had tweaked minimum public shareholding to enable large companies to launch IPOs.

However, Mr. Tyagi also added that SEBI may also look at directed listing like in the US SPAC model in the Indian context. This has attracted a lot of interest in India and is like a buyout deal. Tyagi also added that the debt market in India needed to develop like equity markets and they were keen to provide an enabling environment. This is more so since bond issues are now 36% above bank credit and account for a chunk of corporate fund raising.

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