- Listed PSUs should achieve a minimum public shareholding of 25% within three years. This will:
- Ensure uniformity among listed entities irrespective of their promoters.
- Help the government raise close to Rs.60,000 crore from the sale of shares.
- Under current norms, govt undertakings should have at least 10%
- Share know your client (KYC) information with entities regulated by other financial sector watchdogs – this will ensure common norms across the market.
- Eased norms relating to the size of an initial public offer (IPO) and pricing of preferential shares and increasing the exposure of the anchor investors:
- Companies with a post-capital of more than Rs.4,000 crore should offer at least 10% in the IPO.
- In other IPOs, minimum dilution to public will be 25%, or Rs.400 crore, whichever is lower.
- Has approved detailed norms for ‘research analysts’ including stringent disclosure agreements. This will safeguard investors from manipulative reports and increase transparency.
- Retail investors will get a 10% reservation in an offer for sale (OFS) and also avail discounts by entities selling shares through this route.
- The OFS route is made available to the top 200 listed firms by market capitalisation, compared with the top 100 listed companies at present.
- An easier set of regulations for employee stock option schemes including classifying ESOP Trusts as a separate category of shareholding entities.
- The employee can buy their own company shares subject to certain conditions.
- The existing employee benefit schemes have been provided with a time period of one year from the notification date.
- Read at:http://www.thehindu.com/todays-paper/tp-business/sebi-unveils-slew-of-reforms/article6131905.ece
Exams Perspective:
- Initial Public Offer (IPO)
- Offer For Sale (OFS)
- Share Market
- Market Economy
- Corporatisation of Stock Market