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Thread on today's SEBI Board meeting annoucements 1/n
With highly volatile markets - SEBI is trying to make issue of capital in these troubled times easier. The most important issue with a bear market is that SEBI requires a minimum price for issue of capital.
2/n
2/n
Thus if the price several months back was Rs. 200, that becomes the floor price even though today's price is only Rs. 100. How many people would pay more than say Rs. 95 for such a share? So an offer at Rs. 200 is bound to fail. 3/n
SEBI has relaxed this provision of a high floor price. See the provision previously and the amendment next to it on the right. 26 weeks is now 12 week average price as a floor price. This would allow a more contemporary price as a floor price.
4/n
4/n
"The said option in pricing shall be available for the preferential issues made between July 1, 2020 or date of notification of amendment to the Regulations, whichever is later and December 31, 2020." So it's a limited time exemption.
5/n
5/n
While an open offer is made under the Takeover regulations, there is a restriction on bulk/block trades during the pendency of the offer. These trades are now allowed subect to providing sufficient surety. On right is Reg. 22(2A) 6/n
Minor infractions under insider trading regulations now go to the investor protection fund run by SEBI. Presumably they went to the central government till now, as do all penalties.
7/n
7/n
Settlement regulations provided for a higher settlement amount if the alleged violator was a 'Principal Officer'. This excluded promoters of the company. Now SEBI has brought in promoters into the higher charge mechanism.
8/n
8/n
SEBI's annual report has been approved and will soon be in public domain - it is a rich source of information and statistics about the regulator. 9/n END 25JUNE2020
