SEBI Tightens Norms For Usage Of IPO Proceeds
SEBI approves tightening of norms for utilization of IPO proceeds
Mumbai:
Markets regulator Securities and Exchange Board of India (SEBI) has approved tightening of rules for utilization of proceeds from initial public offering (IPO), even as it approved a series of amendments to various rules. has given. The move comes at a time when more than 60 public issues have entered the primary market in 2021 and companies have raised over Rs 1.18 lakh crore through these.
The changes were made during a meeting of the regulator’s board on Tuesday.
Changes have been approved in the rules governing foreign portfolio investors, alternative investment funds (AIFs), mutual funds, settlement proceedings and others.
SEBI has also decided to introduce provisions relating to the appointment or reappointment of persons who fail to be elected as directors, including whole-time directors or managing directors or managers, at the general meeting of a listed entity.
“The appointment or reappointment of any person, including a managing director or a whole-time director or a manager, who was earlier dismissed by the shareholders in a general meeting, shall be made only with the prior approval of the shareholders,” SEBI said. said in a statement.
