Sebi tightens pre-IPO publicity blitz by firms
The Securities and Exchange Board of India, Sebi has tightened the regulation on pre-issue publicity by companies proposing to make a public or rights issue to make the Indian primary market "more efficient and transparent", reports Business Standard.
A Sebi circular today said that the pre-issue publicity would come under the regulator's scanner from the date of the board approval any public float or rights issue. Earlier, the pre-issue publicity norms were applicable from the date of filing the offer document with Sebi. In other words, companies will now have to maintain the silent period in the run up to their public floats and rights issues for an extended period. The new rules would come into force with immediate effect.
In a related development, Sebi barred key officials of a mutual fund to be on board of a venture capital fund to a conflict of interest between the activities of mutual funds and venture funds. In a separate circular, the regulator said, it has been decided that no key personnel of a mutual fund shall be on the board of asset management company/investment manager/investment advisor/investment committee of a venture capital fund.
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