The current rules for securities contracts (regulation) (SCRR) forced empenters with a post -issuing market capitalization over RS 1.00,000 crore to offer the public RS 5,000 crore and at least 5% of market capitalization after the issue.
For large companies, the revised MPO will still be large enough to offer enough shares to the market, including retail investors, and to facilitate liquidity, said Sebi chairman Tuhin Kanta Pandey today in his press conference.
The decision was made in a SEBI board meeting chaired by Pandey, his third since he took the lead in March.
The change has been made with a view to the difficulties with which large issuers are confronted in diluting substantial ring by IPOs because of the absorption capacity of the market.
Pandey said that the SEBI board has decided to recommend the Ministry of Finance four additional post -market rack threshold, apart from the existing two thresholds.The following thresholds are recommended:1) MCAP ≤ RS 1,600 Crore, there will be no change in the minimum public offer of 25%.
2) For MCAP between RS 1,600 Crore and RS RS 4,000 Crore, there will be no change in MPO of RS 400 Crore. No change in the MPS of 25% will also be achieved to be reached within 3 years of the date of the list.
3) For MCAP between RS 4,000 Crore and RS 50,000 Crore, MPO is retained of 10%.
4) For MCAP between RS 50,000 Crore and RS 100,000 Crore, MPO of RS 1,000 Crore and at least 8% of the post -issue -market capitalization are recommended. In the meantime, MPs of 25% must be reached within 5 years after the date of mention. The current MPS provisions require a threshold of 25% to reach within 3 years after the date of mention.
5) For MCAP between RS 1.00,000 CR and RS 5.00,000 crore, MPO of RS 6.250 Crore and at least 2.75% of the postal problem, market capitalization is proposed. In the event that the public shareholding is less than 15% on the date of mention, the members of parliament of 15% must be reached within 5 years and 25% within 10 years after the date of mention.
6) For MCAP above RS 5.00,000 crore, MPO of RS 15,000 crore and at least 1% of market capitalization after issue, a minimum dilution of 2.5% is proposed.
If the public shareholding is less than 15% on the date of mention, the members of parliament of 15% must be reached within 5 years and 25% within 10 years of the date of mention. In the event that the public shareholding is 15% or higher, such as on the date of mention, the members of parliament of 25% must be reached within 5 years after the date of the list.
Sebi noted that the difficulty to meet the standards for minimal public shareholders (MPS) not only apply to new issues, but also to non-compliant companies. To guarantee parity, the extensive timelines also apply to such entities. Fines and fines that are imposed by trade fairs for non-compliance with the past will continue to pay until the new timelines have been informed.
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