Sebi tweaks norms to aid fund-raising, caps tenure of MD & CEO of exchanges

Sebi also allowed mutual funds and insurers related to the investment banker handling an IPO to participate in the anchor investor category, where shares are allotted on a discretionary basis

The Securities and Exchange Board of India (Sebi) has made major changes in rules governing fund-raising, to provide flexibility to issuers and to boost capital formation.

The regulator tweaked norms governing stock exchanges, clearing corporations and depositories —known as market infrastructure institutions (MIIs) — capping the tenure of top officials and bringing in more accountability to the board structure.  

Going ahead, a company will have to make public the pricing for its initial public offering (IPO) just two days before the opening as distinct from five days earlier. According to experts, this will help issuers handle market volatility better.

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