SEBI working group considering changes in rules related to preferential issues, Brajesh Kumar Mishra explains - Know the point of discussion with Anil Singhvi
In a conversation with Anil Singhvi, Managing Editor at Zee Business, Brajesh Kumar Mishra, Correspondent said that SEBI working group is mainly considering and discussing three things related to preferential issues namely the way of pricing, locking period and relevant date.
In a conversation with Anil Singhvi, Managing Editor at Zee Business, Brajesh Kumar Mishra, Correspondent spoke about the changes in rules related to preferential issues which SEBI Working Group is considering.
Brajesh said that the discussion is mainly related to three things. Firstly, related to the way of pricing. According to the existing rules, pricing is decided based on the average of highs and lows of 26 weeks or 2 weeks whichever is higher and this is decided based on the relevant date. Now it is being discussed if there is the need to reduce the timeline of 26 weeks or not.
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Secondly, the discussion is regarding the locking period for the promoters. If there is any need to change it or not. Currently, the locking period is of 3 years for the promoters in preferential issues while for non-promoters it is of 1 year, Brajesh said.
The third point of discussion is if the relevant date period of 30 days needs to be changed or not, he said.
प्रेफरेंशियल इश्यूज से जुड़े किन किन नियमों में बदलावों पर सेबी वर्किंग ग्रुप कर रहा है विचार... बता रहे हैं ब्रजेश कुमार@SEBI_India @AnilSinghvi_ @BrajeshKMZee pic.twitter.com/0jCPJNScYL
— Zee Business (@ZeeBusiness) August 13, 2021
He further added that one thing which can be observed is that the duration period for the conversion of warrants is of 1.5 years that is you will have to give 25 percent and you will get 18 months to convert if you feel that the share prices are favourable. It is also being discussed if the conversion time period of 1.5 years can be changed or not.
While talking on the time by which the revised guidelines can be expected Brajesh said that SEBI's working group is working on it and its report will then go to the private market advisory committee.
After their approval, final discussion will be done and then the report will go to the board. The rules will be notified only after the board's approval. So the notification can be expected by the end of the year.
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06:22 PM IST