The Securities Exchange Board of India will meet on Thursday to decide on a wide range of reforms for the primary market, including a proposal for electronic initial public offers that would save investors the trouble of bothering with paperwork.
The proposal is for e-IPOs to be available at 1,038 locations via a nationwide broker network of stock exchanges. Also on the cards is a rejig of the eligibility criterion for IPOs. Companies now may have to be profitable for three of the five preceding years, with a minimum average pre-tax operating profit of Rs 15 crore. Also, the average free float market cap maybe reduced from Rs 5,000 crore to Rs 3,000 crore for fast tracking FPOs and rights issues. Nearly 80 issuers are expected to benefit from this move. Ahead of a crucial SEBI board meet on Thursday, chairman UK Sinha was today at the finance ministry.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
