Securities and Exchange Board of India (Sebi) Chairman U K Sinha today said the regulator wanted to take a final view on offer documents filed by companies for their public issues as soon as possible. The regulator wants to be self-disciplined and have certain criteria based on which the offer documents can be rejected. Edited excerpts from Sinha’s media interaction:
Bringing down IPO timeline
Timeline between the close of issue and listing is 12 days. Our view is that if ASBA (application supported by blocked amount) is made available to all investors, these period can be curtailed. Ultimately, the aim of Sebi is that it should be done in five days. For doing that, ASBA has to be made available.
Expeditiously clearing offer documents
Sebi has been criticised in the past that there is delay in dealing with offer documents. Sebi wants to give itself a certain amount of self-discipline. We want the final view on offer documents is taken as expeditiously as possible. In order to do that, there will be certain criteria based on which the offer documents can be rejected.
On MF industry
Sebi has been concerned about the lack of penetration of the mutual fund industry and also lukewarm inflows into the industry.
On long term policy for MF industry
Large number of questions need to be addressed and articulated to the general public. Keeping that in mind, Sebi has decided to have a long term policy for the mutual fund industry. The advisory committee will be given the task to develop this policy.
On safety net
The idea and concept of safety net was discussed. But the board felt further consultation is required and examples from other jurisdiction would also have to be considered before taking a final view.
On Rajiv Gandhi Equity Scheme
If the government is considering the universe of top 200 stocks for the scheme, all Sebi is asking the government to consider is that if there is an MF scheme, which is only investing in those securities, then kindly allow them under the Rajiv Gandhi Equity Scheme.
On allowing rights and bonus for complying with shareholding norms
Promoter will not be allowed in bonus and rights issue we have announced today. The promoter will also not be allowed to renounce it in favour of somebody. So, the rights and bonus issues for this particular purpose have to be for shareholders other than the promoter group. Merchant bankers and companies had recommended for these new avenues.