Sebi To Frame Ipo Norms Via Net In Two Months

Senior Sebi executive O P Gehrotra said, "We are looking at various model for working out the modalities to allow companies to issue shares through the Internet." He said that Sebi is also studying the guidelines issued by the Hong Kong regulator in this regard. Sebi board member J R Varma will be discuss the matter with Hong Kong officials next week at a function organised by the market regulator of that country. Varma will also make a presentation at the function on the Net-based initiatives in the Indian capital market.

Sebi had earlier allowed stock exchanges to use their networks to offer shares to public as prelude to allowing IPOs through Internet. Some of the exchanges like the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is in the process of allowing companies to use their networks for issuing shares. As part of its e-initiative, Sebi had also allowed use of wireless application protocol (WAP) for net trading as well as allowing on-line redemption and repurchase of mutual fund units.

 

Gehrotra said that companies could complete their public issue much faster and with less expenses through the Internet. He said that the whole public issue could be completed in 15 days including issuing of shares, which is not possible in the present step up.