FIIs want Sebi to relax pre-IPO lock-in time

Some of the leading domestic and foreign institutional investors have made a representation to the market regulator Securities and Exchange Board of India requesting it to relax the one-year lock-in period for the shares issued before the Initial Public Offering under the pre-IPO placement route.

Written by Bijith R

February 4, 2008 22:46 IST

Some of the leading domestic and foreign institutional investors (FIIs) have made a representation to the market regulator Securities and Exchange Board of India (Sebi) requesting it to relax the one-year lock-in period for the shares issued before the Initial Public Offering under the pre-IPO placement route.

Confirming this, a senior Sebi official said, ?We have had received such representation from a few institutional investors for certain relaxation in the one-year lock-in period for the pre-IPO placement. The same policy process will be followed by Sebi in this matter too. First, this proposal will be sent to the primary market advisory committee (PMAC) for detailed discussion and then the Sebi board will take appropriate decision based on the recommendation of the PMAC.?

On Thursday last, Anil Chawla, CEO of D E Shaw India Advisory Services, while participating in a discussion during the fifth annual conference on capital markets organised by Ficci requested Sebi to relax the lock-in period for investment in a pre-IPO placement of a company citing the example of other markets.

This article was first uploaded on February four, twenty eight, at forty-six minutes past ten in the night.