SEBI Comes Out With New Rules Governing Changes In Issue Size
The Securities and Exchange Board of India has come out with new norms that entails filing of fresh offer documents in cases where there has been a change in issue size.
Under the new rules, filing of a fresh offer document is required in case of any increase or decrease in the estimated issue (new) size by more than 20 percent, SEBI said in a notification dated Dec. 31. At present, such requirement is both for fresh issues and offer for sale.
In case of an OFS, where there is a change in the number of shares, or in the estimated issue size, by more than 50 percent, the markets watchdog said fresh offer document will be needed.
In case an issue made other than through the book building process, SEBI said minimum 50 percent will be allocated to retail investors and remaining to individual applicants other than retail investors as well as other investors, including corporate bodies or institutions, irrespective of the number of specified securities applied for.
SEBI has amended its capital and disclosure requirements regulations to give effect to these norms.