Anchor Investors' minimum allotment size at Rs 5 crore

Sebi introduced the concept of AIs in June 2009 as a class of committed investors who can be relied upon to anchor an issue of capital in all market conditions, adverse or otherwise. At a board meet, Sebi also took various decisions including one aimed at assessing environmental, social and governance responsibilities of corporates. As such, the regulator decided to mandate listed entities to submit ‘Business Responsiblity Reports’, as a part of their Annual Reports.

To start with, this requirement will be applicable to top 100 companies in terms of market capitalisation and thereafter it would be extended to other companies in a phased manner, the Regulator said while explaining these measures taken by them along the key principles in sync with the ‘National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business’ framed by the Ministry of Corporate Affairs.

Maximum tenure

Further, it has decided to specify a maximum tenure of 12 months for warrants issued along with public/rights issue of securities to avoid the possible misuse.  Hence, the issuer would also be be required to provide disclosures about utilisation of funds so raised, both in the offer document as well as on a continuous basis.

On disclosures where funds (such as venture capital funds etc) are shown as promoters, Sebi said, it has been decided to specify a separate set of disclosures for them.
The Sebi Board also approved amendment to Debenture Trustee Regulations to increase the net worth requirement of such trustees from existing Rs 1 crore to Rs 2 crore.

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