SEBI board tightens rules for utilisation of IPO proceeds
SEBI Board in its meeting held on 28th December, 2021 decided to put a cap on IPO proceeds earmarked for making future acquisition of unspecified targets and will bring under monitoring the funds reserved for general corporate purposes as in some of the draft offer documents, new-age technology companies propose to raise fresh funds for objects where the object is termed as 'funding of inorganic growth Initiatives’. Credit Rating Agency (CRAs) registered with the Board, shall act as Monitoring Agency instead of Scheduled Commercial Banks (SCBs) and Public Financial Institutions (PFI). Certain conditions were also prescribed for selling shares in an Offer-for-Sale (OFS) under IPO by significant shareholders and lock-in period for anchor investors extended to 90 days. Allocation methodology for Non-institutional Investors (NIIs) has also been revised.
