The Securities and Exchange Board of India on 17th February 2021 has approved some major amendments to the existing securities laws, some of these decisions are discussed below:
The Board has decided to recommend changes in the Securities Contracts Regulation Rules for issuers with post-issue market capital exceeding Rs100,000 crores, the requirement of Minimum Public Offer (MPO) be reduced from 10 percent of post-issue market capital (existing provision) to Rs 10,000 crore + 5 percent of the incremental amount beyond Rs 1,00,000 crore,”
Sebi has also relaxed timelines for achieving MPO requirement. As per the Sebi release, “Issuers shall be required to achieve at least 10 percent public shareholding in two years and at least 25 percent public shareholding within five years from the date of listing.”
The Board approved repealing of SEBI (Underwriters) Regulations, 1993 and amendment to SEBI (Merchant Bankers) Regulations,1993 and SEBI (Stock Brokers) Regulations, 1992 to incorporate provisions related to net-worth, maintenance of records and other regulatory compliances for the underwriting activities.
In order to promote ease of doing business, the Sebi board has approved merger of Regulatory Fee on Stock Exchanges Regulations, 2006, with Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
