SEBI opens e-IPO route for stake sale; proposes sops for mutual funds
16 August 2012
The Securities and Exchange Board of India (SEBI) today announced its decision to allow e-IPOs, in addition to the normal route, thereby expanding the scope for selling stake and raising capital through initial public offers.
The market regulator also proposed to frame new rules for investment advisers while fast-tracking clearance to public offer documents of companies.
SEBI also decided that a minimum lot of shares would be assured to retail investors in IPOs.
The e-IPOs option will initially be available at over 1,000 points for electronic bidding in public offers, SEBI chairman U K Sinha said.
He said the board discussed and approved some "very far-reaching reforms" that cold help expand the reach of IPOs and MFs.
SEBI has recommended to the government tax benefits to equity MF investors under the proposed Rajiv Gandhi Equity Savings Scheme (RGESS), SEBI chairman U K Sinha said after a board meeting.