Sebi mulls electronic public offer

The market regulator, the Securities and Exchange Board of India (Sebi) is considering a proposal to allow companies to sell shares through an all-electronic initial public offer (e-IPO). Investors would be able to bid for shares electronically and without the need for signing any papers physically.

The proposed move would help in fast-tracking the IPO process and lower the costs, besides allowing investors to apply for shares and buy these at a click on computers, without the need for signatures on bulky physical documents.

Sebi is currently awaiting a formal clearance from the Ministry of corporate affairs for the e-IPO process, although the ministry has already given a go-ahead informally. In a status report submitted before its board during its last meeting on November 24, Sebi said: “Implementing e-IPO requires amendments to the Companies Act.”