BIG impact of ZeeBiz campaign! These SEBI decisions set to help retail investors; Anil Singhvi hails moves
One of the changes that has been made is in the delisting rules of the companies. At the time of delisting offer made by the company, a floor price is set according to a formula based on the prices of the last six months. Then there is the reverse book-building process where investors can put up price at which they want to sell the shares
A Zee Business campaign in favour of retail investors has just produced stellar results. Market regulator Securities and Exchange Board of India (SEBI) has taken some very important decisions in favour of retail investors. SEBI has given its approval on rules related to delisting, Initial Public Offering (IPO) of start-ups and disclosure norms. Zee Business Managing Editor Anil Singhvi lauded SEBI for taking these decisions and even dubbed the regulator's decisons as being “Super Hit”. Singhvi said that it is not often that he praises regulators, but this time SEBI needs to be complimented for the decisions it has taken.
The Market Guru has been stressing on the need for better disclosure norms for the companies in the interest of retail investors.
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One of the changes that has been made is in the delisting rules of the companies. At the time of delisting offer made by the company, a floor price is set according to a formula based on the prices of the last six months. Then there is the reverse book-building process where investors can put up price at which they want to sell the shares. The promoters then have a choice to revise the price. Under the new rules, the promoters will also have to tell the indicative price along with the floor price.
He said that indicative price will not be less than the floor price.
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This will help the investors to know what the promoter is thinking as far as the share price is concerned. The Managing Editor said that this is a big move.
Another important decision is that the unconfirmed bid will not show in the system.
These two decisions are laudable, he said.
SEBI has also relaxed norms for listing of the start-ups. One of the rules was that an investor who has over 25 per cent holding in the start-up company was required to maintain it for over 1 year. It is now reduced to 1 year.
The companies will also have to declare everything that it has said during an analyst call within 24 hours.
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