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Sebi Decided to Ease Pricing Regulations for Preferential Allotment

Markets regulator Sebi on Thursday decided to ease pricing framework for preferential allotment with a view to easing fundraising for companies.

Sebi Decided to Ease Pricing Regulations for Preferential Allotment
  • Sebi board decided to allow companies to consider two-week average price for pricing preferential share issue
  • Sebi to streamline settlement regulations to make procedures faster and more effective

New Delhi: Markets regulator Sebi on Thursday decided to ease pricing framework for preferential allotment with a view to easing fundraising for companies. It has decided to allow companies to consider two-week average price for pricing preferential share issue, Sebi said in a statement after the board meeting.

Currently, any preferential share issuer has to consider the average of weekly high and low for 26 weeks. The specified securities allotted on preferential basis using this pricing formula will be locked-in for a period of three years. The option in pricing will be available for the preferential issues made between July 1, 2020 and December 31, 2020. In addition, the regulator has also streamlined settlement regulations to make procedures faster and more effective. Besides, it has decided to amend insider trading norms.

(Except for the headline, this story has not been edited by Scrabbl staff and is published from a syndicated feed.)


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