NEW DELHI: The Securities and Exchanges Board of India (SEBI) on Wednesday relaxed norms for public offerings and portfolio managers, which were among many measures that the market regulator’s board approved.
The rules currently mandate that companies with a post issue market capital of at least Rs 4,000 crore are required to offer a minimum of 10 per cent to the public and ratchet this public holding to 25 per cent over three years of listing.
This requirement has been diluted by bringing in a new provision which states that for firms with a post issue market capital of more than Rs 1,00,000 crore, this norm will be relaxed to “Rs 10,000 crores plus 5 per cent of the incremental amount beyond Rs 1,00,000 crore”.
“These issuers shall be required to achieve at least 10 per cent public shareholding in two years and at least 25 per cent public shareholding within five years from the date of listing,” a release issued by Sebi said.
Besides, the regulatory body also repealed the Sebi (Underwriters) Regulations, 1993 and brought amendments to the Sebi (Merchant Bankers) Regulations, 1992 and the SEBI (Stock Brokers) Regulations, 1992.
Through these, the board approved amendments to regulations governing portfolio managers, investment advisers, and research analysts. The move will help to recognise “the post graduate program in securities market of not less than one year offered by NISM as eligible qualification for portfolio managers, investment advisers and research analysts”. Earlier the finance minister had proposed to create a single securities markets code.