SEBI Updates IPO Regulations: SEBI, the body that regulates the stock market in India, has tightened the rules regarding IPO. SEBI has asked merchant bankers to upload IPO-related documents on the online platform operated by the stock exchange and maintain them from time to time.
The issue document to be uploaded after thorough verification can be accessed using the respective merchant banker’s login ID. However, in the circular issued, SEBI said that documents will have to be provided for document verification by SEBI.
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SEBI Updates IPO Regulations: Repository Launched
Stock exchanges have launched an online platform “Repository” Where merchant bankers can upload and maintain documents related to SEBI Updates IPO Regulations. This platform facilitates easy access and efficient record management. Stock exchanges will receive instructions to upload the list of documents prepared with the Indian Investment Association (AIBI).
SEBI Updates IPO Regulations New Rule Work in Force 1 January 2025
This new rule of SEBI will come into effect from 1 January 2025. So 1 January, it will be mandatory for SEBI or stock exchanges to upload these documents within 20 days of filing of IPO-related debt documents and within 20 days of listing in the stock exchange. However, this time limit will be further reduced from April 1, 2025, after which all the documents related to the IPO will have to be uploaded on the platform within 10 days.
SEBI’s Proposal in the Equity Cash Market
Meanwhile, SEBI proposed to start a closed auction session (CAS) drop in the country to decide the closing price of shares in the equity cash market. Currently, the closing price of shares in India is determined using the moving average price (VWAP) based on the last 30 minutes of trading of the trading day. This system facilitates the determination of fair market price but does not allow trading at the exact price.
About the SEBI Consultation Form?
SEBI’s consultation form states that the current closing price in India is based on VWAP. Due to this, some international passive fund houses say that the current price mechanism can cause fluctuations in many types of stocks. Due to this big orders with high risk will not be completed. A new proposal has been proposed as a solution to this problem.
📢 LG has filed a DRHP with SEBI.
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Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗