 "Monitoring agencies to be made compulsory for all IPOs")
To monitor the utilisation of issue proceeds in an initial public offering (IPO), Sebi has proposed the appointment of a monitoring agency for issues of all sizes. As per current regulations, monitoring agencies are compulsory only for IPOs with an issue size of over Rs 500 crore.
The proposal was part of a discussion paper released by Sebi on Tuesday titled ‘Monitoring Agency Report and Related Disclosures’.
“It is pertinent to extend the requirement of monitoring of utilisation of issue proceeds to all the companies to ensure that such instances are identified and addressed in accordance with extant legal framework. It will also strengthen the monitoring of utilization of all the equity capital raised through issuance of equity shares to public,” said the discussion paper on Sebi’s website.
The capital market regulator also added that the move was in keeping with the new Companies Act, 2013 which has included certain provisions for deviation in utilisation of issue proceeds.
ALSO READ: New Sebi norms a step ahead of Companies Act
ALSO READ: New Sebi rules to cap tenure to ten years
The proposal was part of a discussion paper released by Sebi on Tuesday titled ‘Monitoring Agency Report and Related Disclosures’.
“It is pertinent to extend the requirement of monitoring of utilisation of issue proceeds to all the companies to ensure that such instances are identified and addressed in accordance with extant legal framework. It will also strengthen the monitoring of utilization of all the equity capital raised through issuance of equity shares to public,” said the discussion paper on Sebi’s website.
The capital market regulator also added that the move was in keeping with the new Companies Act, 2013 which has included certain provisions for deviation in utilisation of issue proceeds.
ALSO READ: New Sebi norms a step ahead of Companies Act
ALSO READ: New Sebi rules to cap tenure to ten years
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%