Rationalising regulation

Sebi's proposals are in line with changing investor landscape

The Securities and Exchange Board of India (Sebi) has released a discussion paper indicating substantial changes to regulations governing the Issue of Capital and Disclosure Requirements 2009 (ICDR 2009). If the proposed changes are accepted, it would ease requirements for listing and allow quicker exits for early investors by reducing the lock-in periods. The concept of “promoter” is also to be replaced by “persons in control”, or “controlling shareholders”. The requirements for disclosures pertaining to group companies and related-party transactions would be reduced. Under the 2009 rules, the “promoter group” must maintain a minimum shareholding of 20 per cent for