Sebi Clears Various Amendments, Extends Lock-In Period Of Anchor Investors To 90 Days

The markets watchdog said that the existing lock in period of 30 days shall continue for 50 per cent of the portion allocated to anchor investor

The Sebi rationalised time period for filing settlement applications by entities to 60 days from date of receiving showcause notice. Image: Getty

New Delhi: The Securities and Exchange Board of India (Sebi) board on Tuesday took a slew of amendments, including extension of the lock-in period for anchor investors to 90 days.

The markets watchdog cleared changes to regulations pertaining to issue of capital and disclosure requirements.

“The existing lock in of 30 days shall continue for 50 per cent of the portion allocated to anchor investor and for the remaining portion, lock in of 90 days from the date of allotment shall be applicable for all issues opening on or after April 1, 2022,” said the market regulator in a statement.

The decision comes at a time when shares of food delivery major Zomato and that of One97 Communications, the parent of Paytm, had slipped 9 per cent and 13 per cent, respectively, when the mandatory one-month lock-in period for their anchor investors ended.

In case of book built issues, a minimum price band of be at least 105 per cent of the floor price shall be applicable for all issues opening on or after notification in the official gazette.

The Sebi board also decided to restrict investors holding over 20 per cent stake to sell a maximum of 50 per cent of their shares through the offer for Sale (OFS). It also approved amendments to regulations governing Alternate Investment Funds, Foreign Portfolio Investors.

The Sebi rationalised time period for filing settlement applications by entities to 60 days from date of receiving showcause notice.

Changes have been cleared for regulations governing foreign portfolio investors, Alternative Investment Funds (AIFs), mutual funds, settlement proceedings, among others.

The Sebi has also decided to introduce provisions relating to appointment or re-appointment of persons who fail to get elected as directors, including whole-time directors, managing directors at the general meeting of a listed entity.