Sebi amends norms on preferential allotment

The Securities and Exchange Board of India (Sebi) has amended the Disclosure and Investor Protection (DIP) guidelines.

The market gulator has altered preferential issue norms, allowing companies to list warrants along with non-convertible debentures through qualified institution placements.

At present, DIP guidelines provide that warrants can be allotted on preferential basis, subject to the allottees paying upfront, an amount equivalent to at least 10 per cent of the price fixed, at the time of allotment of warrants. It has now been decided to enhance the upfront amount payable from 10 per cent to 25 per cent.

Sebi has also reduced the timelines for completing bonus issues to 15 days from six months where no shareholder approval is required and 60 days where the company requires shareholders' nod.