10 February 2021

RELAXTION IN IPO NORMS GRANTED BY SEBI TO LARGE COMPANIES

Securities and Exchange Board of India (SEBI), in the meeting of its Board members held on Wednesday, 17th February, 2021 has decided to recommend changes in Securities Contracts (Regulation) Rules, 1957 (SCRR), by lowering the Minimum Public Offer (MPO) requirements for Companies with a post-issue Market Capitalisation of more than Rs. 1 lakh crore (Rs. 1 trillion).

 

At present, companies with post issue market capital of Rs. 4,000 crore or more are required to achieve MPO of 10% of its post issue market capital. Further such Companies are also required to achieve a minimum Public Shareholding of at least 25% within three years from the date of listing.

 

The market regulator has now recommended to relax the MPO requirements for the abovementioned Companies by reducing it to Rs. 10,000 crore plus 5% of the incremental amount beyond Rs. 1 lakh crore. Further such Companies will now be required to achieve at least 10% Public Shareholding in two years and at least 25% within five years from the date of listing.