SEBI permits participatory notes for ONGC issue

New Delhi: The Securities and Exchange Board of India (SEBI) has permitted the associates of book-running lead managers can to issue participatory notes for the public offer for sale of 10 equity in ONGC.

SEBI had written to the Disinvestment Ministry on February 27 stating that the associates of lead managers can be allowed to issue participatory notes subject to certain caveats including disclosure norms. The market regulator has asked the Government to enforce these caveats if it decides to allow the associates of lead managers to issue participatory notes for the ONGC offer," a senior Disinvestment Ministry official said.

"This would require the Government to lay down new procedures for issuing participatory notes to comply with the SEBI caveats. This has to be worked out, but a decision has not yet been taken in this regard," the official said.