Syllabus Section: Economy
Why in News?
SEBI eases norms for follow-on public offers.
• The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been removed.
• Earlier, promoters were mandated to contribute 20% towards a FPO.
• Besides, in case of any issue of capital to the public, the minimum promoters’ contribution was required to be locked-in for three years.
• Relaxation would be available for those companies which are frequently traded on a stock exchange for at least three years.
• Also, such firms should have redressed 95% of investor complaints.
The Securities and Exchange Board of India (SEBI)
• It is the regulator of the securities and commodity market in India owned by the Government of India.
• It was established in 1988 and given statutory status through the SEBI Act, 1992.
• SEBI is responsible to the needs of three groups:
o Issuers of securities
o Market intermediaries
Source: The Hindu