MUMBAI: The Securities and Exchange Board of India (SEBI) on Wednesday reduced the time duration for a rights issue from 109 days to 43 days.
“The reduction in timelines would reduce the market risk faced by investors and issuers and would ensure faster turnaround of money for investors,” said C. B. Bhave, Chairman, SEBI, while addressing a press conference here after its board meeting.
The board also approved the proposal for prescribing and standardising the format for abridged scheme-wise annual report and reduction in time period for dispatching the annual report to mutual fund unit holders from six months to four months.
The new time limit for dispatching will be made applicable for the annual reports of 2008-09 onwards..
To reduce the time duration for a rights issue, SEBI has decided to amend the SEBI (DIP) guidelines and the listing agreement.
Reduction in timeline approved include: the number of days for the notice period for a board meeting will be reduced from seven days to two working days; the notice period for record date will be reduced from 15/21/30 days to seven working days for all scrips; issue period will be reduced from a minimum of 30 days to a minimum of 15 days with a maximum of 30 days and the time period for completion of post-issue activity will be reduced from 42 days to 15 days.QIP pricing norms
The SEBI board has decided to revise the pricing norms for QIP (qualified institutional placement) and preferential allotment: Floor price may be based on the two weeks average for making a QIP or for making preferential allotment to QIBs (qualified institutional buyers); and relevant date for QIP will be the date on which the board of the company or the committee of directors duly authorised by the board of the company meets to take the decision to open QIP.
Quarterly results
Further the SEBI board decided to amend Clause 41 of the listing agreement.
Accordingly, a listed entity in addition to submitting quarterly and year-to-date standalone financial results within one month of end of the quarter, may also submit consolidated financial results to the stock exchanges within two months from the end of the quarter.
“A listed entity opting to submit consolidated financial results in addition to standalone results to the stock exchanges will be required to publish consolidated financial results only.”
A listed entity would also be required to place the limited review report on unaudited financial results before its board of directors or committee before submission to stock exchanges only if the variation (as defined in present Clause 41) between unaudited financials and financials amended pursuant to limited review for the same period exceeds 10 per cent.
SEBI also decided that “where the listed entity chooses to submit unaudited financial results for the last quarter (instead of submitting audited financial results for the entire financial year within three months of end of the financial year), the limited review report will be submitted for the last quarter also.”Ahmedabad office
The board approved the opening of Western Regional Office of SEBI at Ahmedabad. This office will look after the regulatory aspects of investor protection and market regulation and supervision regarding issuers, investors and intermediaries.
PTI reports:
Belying expectations, the SEBI took no decision on restrictions on issue of Participatory Notes by foreign institutional investors (FIIs) but it gave an in-principle nod to the National Stock
Exchange for starting currency futures.
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