Categories: Business

key highlights of SEBI board meeting

Photo: FILE

key highlights of SEBI board meeting

new Delhi. The capital markets regulator Securities and Exchange Board of India (SEBI) has decided to soften the rules related to pricing for preferential allotment. This decision of SEBI will make it easier for companies to raise funds. Several decisions were taken in the meeting of SEBI board of directors on Thursday, one of which is related to preferential allotment. After the meeting, Sebi said that companies would be able to decide the value of preferential share issue based on the average price of their shares for two weeks. Right now any company issuing an issue has to look at the average of the higher price on a weekly basis and the average of the lower price for 26 weeks. The 'lock-in' period for securities distributed on a preferential basis through this price formula will be three years. The price option will be available for the preferential issue issued from July 1, 2020 to December 31, 2020.

In addition, the regulator has also rationalized settlement rules. This will make the process faster and more effective. Along with this, SEBI has also decided to amend the insider trading rules. According to the new rules, such information, which has not been published among the general public, will have to be kept in record, along with which information has been shared with whom. This step will help curb insider trading.

This post was published on June 25, 2020 7:36 pm

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