Market regulator the Securities and Exchange Board of India (Sebi) today allowed the concept of anchor investor (AI) in every initial public offering (IPO), who can invest up to 30 per cent of the institutional quota. An AI would have to be a qualified institutional buyer and invest a minimum of Rs 10 crore. It also has to bring in 25 per cent of the margin on application and another 75 per cent within two days of the closure. The lock-in period for an AI will be 30 days, said C B Bhave, chairman, Sebi today.
The board has also approved amendments regarding disclosure norms for rights issues. Rights issues are those which entitle existing shareholders to buy newly issued shares at a discount. The board was also expected to consider amendments regarding the regulator's structure that will give it powers of a civil court.
Sebi also relaxed disclosure norms in rights offers by reducing the amount of documentation required. IPOs must be listed on at least one national exchange.
Also, no listed company can issue shares with superior voting rights. There can also be no preferential issues with superior voting rights. This will avoid the possible misuse by the persons in control to the detriment of public shareholders.
Sebi has said that there will be no entry load for the schemes, existing or new, of a mutual fund. The upfront commission to distributors shall be paid by the investor to the distributor directly. Distributors, on their part, will have to declare the commissions that they are getting from the investors.
Among other moves, the market regular has cut the fess by 50 per cent on both debt and equity deals. In case of equities, the fees will now be Rs 10 per crore of turnover (earlier Rs 20 per crore). In debt, the revised rate would be Rs 2.5 per crore of turnover (earlier Rs 5).