SEBI tightens IPO process with slew of new norms

The Securities and Exchange Board of India (SEBI) has announced tighter rules for companies raising capital from the markets, anchor investors, preferential allotments and changes in IPO (initial public offering) pricing norms. The changes appear to have been prompted by the sales of shares via OFS in 2021 as financial investors exited companies.

Against this backdrop, Suhail Nathani, Managing Partner at Economic Laws Practice (ELP) has been quoted by Financial Express in their article titled ‘Sebi tightens IPO process with slew of new norms’. Suhail is of the opinion that new norms on public issuances are designed to keep the large shareholders longer in the company. He further says that refined use of funds raised under FCP is a good move and would also enhance the checks and balances.

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