The Securities and Exchange Board of India (SEBI) has approved crucial changes to IPO’s in India. These include restricting the amount that a company can use for unidentified acquisitions, increasing the lock-in period for anchor investors and approving credit rating agencies (CRAs) for monitoring issue proceeds. The SEBI board also approved a special category of venture capital funds to buy stressed loans from banks and financial institutions.
In light of these changes, Suhail Nathani, Managing Partner, Economic Laws Practice (ELP) has been quoted by Economic Times in their article titled ‘Sebi board OKs changes to IPOs, preferential issues’. Suhail is of the opinion that the addition of special situation funds is a welcome step as it offers the right amount of flexibility to investors to invest in the stressed asset class.
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