The board meeting of the market regulator SEBI will be held on February 17, which will be chaired by Finance Minister Nirmala Sitharaman. In this meeting of SEBI, many important issues will be discussed along with the relaxation of the rules for launching IPO. SEBI may approve float of lesser shares in IPO launches to provide relief to large companies and tech-based companies. Also, for retail investors in the IPO, the investment limit may be considered to be reduced from Rs 15,000. Apart from this, the meeting of SEBI will also consider the formation of Investors Charter and Gold Spot Exchange to make the directors of companies more accountable.
According to the current rules for launching an IPO, if a company has more than Rs 4000 crore of post-issue capitalization, then that company has to dilute 10% of its stake. That is to reduce shareholding by 10%. This range is Rs 400 crore, from Rs 1600 crore to Rs 4000 crore. At the same time, for small IPOs, the stake dialling limit is 25%.
According to the new norm, these are the rules
According to the new rules proposed to launch an IPO, companies with post-issue valuation of Rs 10,000 crore to Rs 1 lakh crore will have to dilute 5% stake in IPO in addition to Rs 1000 crore and balance of more than Rs 10,000 crore. . For example, suppose the m-cap of a company is Rs 1 lakh crore, then it will have to dial a stake of Rs 1000 crore. Apart from this, 5% of the Rs 90,000 crore, ie additional stake of 4500 crore rupees will have to be dialed. That is, the promoters of the company will have to reduce their shareholding by Rs 5500 crore.
Big companies will be able to launch big IPO
According to the new rules, companies whose m-cap is more than Rs 1 lakh crore, will have to dial 2.5% of the stake which is more than Rs 10,000 in addition to Rs 1000 crore. This will enable big companies to launch a bigger IPO, which currently requires 10% stake to be floated. Also, according to the new rules, companies with m-cap of more than Rs 1 lakh crore will get 5 years instead of 3 years to meet the norms of 25% minimum public shareholding. This will benefit the capital market. With this decision, big companies will be able to launch bigger IPOs.
These issues will also be discussed
SEBI’s board meeting will discuss the framing of stringent rules for independent directors of companies. The government has received several complaints related to corporate governance in listed companies. Hence SEBI is considering revamping the nomination and remuneration committee framework. Apart from this, SEBI may also consider scrapping the underwriter’s Regulations. Currently, IL&FS and SBI are the only 2 official underwriters in the country. Now merchant bankers and stockbrokers will also be able to work as underwriters. Apart from this, the delisting process of companies can also be considered in the meeting.