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Sebi provides clarity on preferential issues, anchor investors

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Press Trust of India Mumbai
Last Updated : Sep 11 2014 | 5:52 PM IST
Providing more clarity, Sebi today said revised norms related to anchor investors and preferential share issues would be applicable prospectively from August 25 when the amended regulations came into force.
In a circular, the capital market regulator said that new preferential issue norms would be applicable to issues where notice for the shareholders meeting was given by the company "on or after the date of notification" of the amended rules.
Besides, Sebi has clarified that new anchor investor allocation would be applicable to companies which have filed offer documents with the Registrar of Companies (RoC) "on or after the date of notification" of the rules.
The Securities and Exchange Board of India (Sebi) has issued the clarification "in order to remove any difficulties in the application or interpretation" of the amended norms.
Aiming to revive the primary markets, Sebi had on August 25 notified regulations concerning pricing of preferential shares, among others, and had also increased the anchor investor's bucket to 60 per cent from 30 per cent.
The new norms fall under Sebi (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014.

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"The new and revised regulations...On preferential issue, shall be applicable for the preferential issuances where notice for the general meeting for passing of special resolution by the shareholders is issued on or after the date of notification of Sebi (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014," Sebi said in a circular today.
"The revised sub-regulation...On anchor investor allocation, shall be applicable to issuers filing offer documents with the Registrar of Companies on or after the date of notification of Sebi (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014," the market regulator added.
Sebi board in its meeting held on June 19, 2014 had undertaken review of the extant regulatory framework in the primary market and approved certain reforms to revitalise the market including increasing the investment bucket for anchor investor and making certain amendments to regulations concerning the preferential issue norms.

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First Published: Sep 11 2014 | 5:52 PM IST

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