Auction to be an additional book building mechanism for IPOs

The board decided to introduce an additional method of book building, to start with, for FPOs, in which the bidders would be free to bid at any price above the floor price and allotment would be on price priority basis and at differential prices.

However, retail individual investors in such cases would be allotted shares at the floor price.

The board further decided that if the issuer desires to place a cap either in terms of number of shares or percentage to issued capital of the company in order that a single bidder does not garner all shares on offer and there is wider distribution, the same may be p

Amendments to ICDR Regulations/ Listing Agreement

The SEBI board decided to accord qualified institutional buyer (QIB) status to insurance funds set up by armed forces such as Army Group Insurance Fund.

Reservation to employees: Currently the ICDR regulations permit reservation up to 10 per cent of issue size to employees in public issues. However, there is no ceiling on number of shares that could be allotted. The board decided to put a ceiling of Rs1 lakh on the value of allotment that can be made to an employee under employee reservation category and to permit reservation up to 5 per cent of the post issued capital instead of 10 per cent of issue size.