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Bankers seek easier share sale norms

Sebi may relook at offer for sale, institutional placement programme norms based on market feedback

Investment bankers plan to approach the Securities and Exchange Board of India (Sebi), for relaxation of rules relating to the the institutional placement programme (IPP) and offer for sale (OFS) to achieve next year’s public shareholding deadline. Bankers will ask Sebi to relax certain norms like the 100 per cent upfront margin requirement, time gap between two IPPs and some norms on issue pricing and disclosures. Currently, investors are required to cough up the entire investment amount, which according to bankers is a deterrent. “The 100 per cent cash margin is draconian. ...