Market’s regulator SEBI (Securities and Exchange Board of India) has proposed that the concept of company "promoters" be replaced with the concept of "person in control." SEBI also recommended changes to the lock-in periods for companies raising public capital for project financing or establishing greenfield projects. The three-year lock-in period that promoters must observe on at least 20% of their shareholding after an initial public offering (IPO) can be reduced to one year, and an excess of 20% reduced from a year to six months.
SEBI has also simplified the definition of "promoter group" by removing the clause that defined a promoter group as a group of individuals or companies owning 20% or more of a company. In terms of group companies, the regulator has proposed that the Draft Red Herring Prospectus only include the names and registered office addresses of all group companies.
Your password has been successfully updated! Please login with your new password
The link is unavailable for your login. Please empanel with the ID Databank to access this feature. For more information, email support@independentdirectorsdatabank.in or call 1-800-102-3145.