The Securities and Exchange Board of India (“SEBI”) has issued a Press Release dated 17th February, 2021 informing about its Board Meeting held on 17th February, 2021.
Some of the key decisions taken at the meeting were :
1. Minimum Public Offer (MPO) requirements for large issuers relaxed:
Presently, in terms of Securities Contracts (Regulation) Rules, 1957 (“SCRR Regulations”), issuers with post issue market capital of at least Rs 4,000 crores or more, are required to offer to public at least 10% of its post issue market capital (‘Minimum Public Offer’ – MPO). Further, such issuers are also required to achieve a minimum public shareholding (MPS) of at least 25% within three years from the date of listing.
SEBI has decided to recommend changes in the SCRR, for issuers with post issue market capital exceeding Rs.1,00,000 crores, the requirement of MPO be reduced from 10% of post issue market capital (existing provision) to Rs.10,000 crores + 5% of the incremental amount beyond Rs.1,00,000 crores. These issuers shall be required to achieve at least 10% public shareholding in two years and at least 25% Public Shareholding within five years from the date of listing.
2. Amendment to SEBI (Investment Advisers) Regulations, 2013 :
SEBI has approved amendment to SEBI (Investment Advisers) Regulations, 2013 to recognise the Post Graduate Program in Securities Market of not less than one year offered by NISM as eligible qualification for Investment Advisers. Similar amendments to SEBI (Portfolio Managers) Regulations, 2020 and SEBI (Research Analysts) Regulations, 2014 are also approved with regard to Portfolio Managers and Research Analysts.
3. Amendment to SEBI (Stock Brokers) Regulations, 1992:
SEBI has approved the amendment to SEBI (Stock Brokers) Regulations, 1992 to incorporate provisions related to net-worth, maintenance of records and other regulatory compliances for the underwriting activities.
