SEBI tightens disclosure norms for IPOs

regulator, SEBIThe Board in its Board meeting decided to relax the pricing norms for open offers in respect of disinvestment of PSUs.

however for IPOThe market regulator has approved a proposal to disclose key performance indicators (KPIs) of the issuer based on past transactions and past funds and the price per share of the issuer to disclose the offer price based on past transactions and fund raising activities. Gave.

“The issuer will disclose the pricing details of the shares based on past transactions and previous fund raises from the investor,” the press release said.

It has also said that the issuing companies, in addition to the audited financial numbers, also disclose their key numbers on various key performance indicators in different sections. DRHP which are not included in the financial statements in the offer documents.

Also, companies considering an IPO will soon have the option of confidential pre-filing of the offer documents.

Offer for sale:

The regulator has also given its nod to the proposed changes in the existing offer for sale (OFS) structure.

SEBI has removed the 10 per cent minimum shareholding requirement for non-promoter shareholders to sell shares through the offer-for-sale mechanism.

Earlier, non-promoters held 10 per cent stake in the firm and were willing to offer shares at least 25 crore as eligible to offer its shares through OFS.

The cooling off period of the existing 12 weeks for OFS has been reduced from +2 weeks to 12 weeks depending upon the liquidity of the securities of such eligible companies.

Based on the liquidity of the securities of such eligible companies, the cooling off period has been reduced from the earlier cooling off period of plus-12 weeks to plus,-12 weeks.

OFS mechanism has been made available to the unit holders/sellers of the listed REITs/InvITs to offer their holdings.