Sebi board decides to reduce minimum lock-in period for promoters post IPO

The market regulator reduced the lock-in period to 18 months from 3 years under some conditions

Markets watchdog Sebi on Friday cleared a slew of proposals, including new regulations for share-based employee benefits and sweat equity, as well as decided to amend norms for alternative investment funds.

Besides, the regulator will reduce the minimum lock-in period for promoters post an Initial Public Offer (IPO) and also facilitate ease of doing business with respect to market infrastructure institutions.

The market regulator reduced the lock-in period to 18 months from existing 3 years. The Sebi board agreed "in-principle" to the proposal for shifting from the concept of promoter to "controlling shareholders".

The lock-in of promoters shareholding to the extent