SEBI on December 04 granted bigger flexibility to corporates for their fund-raising plans and also outlined measures to prevent the panic redemptions. Market regulator has approved a proposal to extend the validity of an initial public offering (IPO) approval from three months to one year, on requests from issuers. According to the prior rule, companies had to launch their IPOs within three months of securing SEBI's approval. For any reason failure to complete the offering would have meant approaching the SEBI for a new approval.
For many companies the new rule brings great relief, who were earlier forced to defer their IPOs even after obtaining SEBI approval. Under the new rule, these companies can go public within one year of receiving the regulator's approval. However, SEBI has also specified that companies will have to update the document with fresh numbers and any other material changes whenever required.
No comments:
Post a Comment