SEBI to empower retail investors in takeovers, IPOs
Monday, 25 October 2010
NEW DELHI, Oct 24 (PTI): Market regulator SEBI will tomorrow consider giving more teeth to the retail investors at the time of initial public offers (IPOs) as also takeovers of the listed companies, by way of allowing them a larger pie when companies go public and a better price when companies get acquired.
In its board meeting scheduled for tomorrow, the SEBI will consider final guidelines on two key aspects of the capital market, IPOs and takeovers, after taking into account the public comments for the draft guidelines floated by the regulator on these issues.
Sources said that SEBI would consider in the meeting the final form of the new Takeover Code, which among other changes proposes to bring in retail shareholders at par with the promoters in terms of price received in the M&A deals.
The regulator has collated all the public comments, which are divergent in nature on various aspects of the proposed draft takeover code, and a final decision could be taken tomorrow, a senior official said.
At the same time, the SEBI board is also likely to consider final approval to the recently proposed draft guidelines on enhancing the purchasing power of retail investors in the IPOs. In the draft guidelines, SEBI has proposed to raise the ceiling for retail investors to Rs 0.2 million in public issues, from Rs one lakh currently.
The regulator has received positive feedback on this proposal and might soon revise its regulations to allow retail investors to invest up to Rs 0.2 million in public issues, sources said.
The investment limit for retail investors was raised way back in 2005 from Rs 50,000 to Rs 1,00,000 in public issues.
In its board meeting scheduled for tomorrow, the SEBI will consider final guidelines on two key aspects of the capital market, IPOs and takeovers, after taking into account the public comments for the draft guidelines floated by the regulator on these issues.
Sources said that SEBI would consider in the meeting the final form of the new Takeover Code, which among other changes proposes to bring in retail shareholders at par with the promoters in terms of price received in the M&A deals.
The regulator has collated all the public comments, which are divergent in nature on various aspects of the proposed draft takeover code, and a final decision could be taken tomorrow, a senior official said.
At the same time, the SEBI board is also likely to consider final approval to the recently proposed draft guidelines on enhancing the purchasing power of retail investors in the IPOs. In the draft guidelines, SEBI has proposed to raise the ceiling for retail investors to Rs 0.2 million in public issues, from Rs one lakh currently.
The regulator has received positive feedback on this proposal and might soon revise its regulations to allow retail investors to invest up to Rs 0.2 million in public issues, sources said.
The investment limit for retail investors was raised way back in 2005 from Rs 50,000 to Rs 1,00,000 in public issues.