IPO reforms: Sebi issues notification
As per the notification issued by Sebi, no company can deploy more than 25 per cent of the public offer proceeds in the name of “general corporate purposes”. Besides, any issue-related expenses can not be considered as a part of ‘General Corporate Purpose’ merely because no specific amount has been allocated for such expenses in draft offer document.
Among other measures, which have been approved by Sebi’s board, any merchant banker that is an associate of the issuer would have to limit its role to marketing of the offer and declare itself as a marketing lead manager.
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