SEBI’s new rules to improve the IPO market
News Agency / Mumbai
SEBI on Tuesday announced new rules to improve the IPO market. Many companies raise funds from the market. However, they did not say how they would use it. That is why SEBI has announced sweeping reforms to protect investors.
SEBI’s board of directors met on Tuesday. Various decisions were taken. Major improvements have been made in the rules regarding portfolio investors, alternative investment funds, mutual funds, compromise methods, etc.
New provisions have been made for the appointment or re-appointment of directors, full-time directors, managing directors or managers of registered companies. Shareholder approval is mandatory for this appointment.
Mutual funds invest in virtual currency up to the law
The approval of the unit holder is required when closing the plan
Mutual fund companies will have to get the approval of their unit holders when closing any of their schemes. If the unit holder opposes the closure of any scheme, the scheme will be re-invested. Last year, the Franklin Templeton Fund abruptly closed six of its debt plans. The money for the scheme is still being paid to investors. Also, from 2023-24, fund houses will have to comply with Indian Account Standards. Increased lock-in period for anchor investors. Anchors cannot sell all their shares to investors within 30 days. Now these investors can sell 50% of the shares in 30 days and the remaining shares in 90 days. This rule will come into force from April 1, 2022.