Team Blitz India
NEW DELHI: The Securities and Exchange Board of India (Sebi) expert committee has suggested giving companies more flexibility to alter the issue size post the submission of an offer document.
Further, allowing companies to extend the Initial Public Offering (IPO) period just by one day as against the compulsory three days at present in case of force majeure events, such as a banking strike.
The expert committee, chaired by former Sebi whole-time member SK Mohanty and comprising members from the Ministry of Finance, Ministry of Corporate Affairs, stock exchanges, legal experts, has also suggested changes both on the listing as well as the disclosure front.
The panel was set up following the previous Union Budget announcement directing financial regulators to work on simplifying and easing the compliance burden.
At present, companies need to maintain at least 20 per cent of their post-offer equity share capital as MPC. The rule is to ensure that promoters maintain some skin inthe game after raising funds from the public.
