Sebi may relax norms to help dilute promoter stake in companies today
Among others, Sebi is expected to allow institutional investors to bid for shares in an OFS without paying any up-front margin. Such bidders, however, will not be allowed to withdraw or modify their bids. The new norms will most likely be announced on Friday when the board of the capital market regulator meets in Chennai.
“We will perhaps go for some more simplification rather than any other routes,” said Sebi chairman UK Sinha on Wednesday. Apart from OFS, institutional placement programme (IPP), follow-on public offer (FPO), rights and bonus are the ways in which promoters can dilute their stake to comply with public shareholding norms.
According to the minimum public shareholding norms, private sector companies need to attain a minimum public holding of 25% by June this year, while a threshold of 10% is required by PSUs by August. Incidentally, promoters of nearly 190 companies are yet to bring down their shareholding to desired level to meet the guidelines.
According to persons privy to the development, the regulator will also direct stock exchanges to disseminate data related to the indicative price and the quantum of bids so as to provide more clarity to all potential bidders.
Currently, information related to the quantum of bids is updated on a regular basis, which is available on
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