Ambi Seeks Changes In Book-Building Norms
The note, which was presented to Sebi last week, includes suggestions pertaining to waiving of the minimum 25 per cent offer in public portion norm, mandatory underwriting of the net public offer portion in debt issues and the relaxation in listing norms of stock exchanges.
According to the note, a copy of which is available with Business Standard, Ambi is of the view that the entire issue, including the placement portion, is in fact an offer to the public at large.
The association has suggested that the aggregate securities offered under the placement portion and the public portion should be considered as offer to public within the meaning of Rule 19(2)(b) of the Securities Contract (Regulation) Rules, 1957.
Business Standard had earlier reported that Sebi is planning to do way with the minimum 25 per cent clause. Vijay Ranjan, senior executive director, primary market division, Sebi, said the regulator will consider proposals put forward by Ambi and place it before the board. We will seriously consider them and after seeking the requisite board approval make the necessary changes, he told Business Standard.
The note further suggests that in case of excess subscription in the placement portion, additional allotment in the placement portion should be permitted to the extent of the undersubscription in the public portion and any shortfall in the placement portion should be added back to the public portion of the issue. Ambi has also suggested doing away with the requirement of mandatory underwriting of the net public offer portion in cases of debt issues through the book-building route.
It is being put forward to the regulator that in public issues through the "-->