Sebi moves to simplify IPO papers

Sebi moves to simplify IPO papers
Capital market regulator Securities and Exchange Board of India (Sebi) will soon allow companies going under the hammer to come out with a shortened and more understandable offer document.

According to Sebi Chairman U K Sinha, the step is being taken to enable retail investors to understand the companies better wherein they propose to invest. At present, the documents are quite large with complex details and investors tend to avoid reading them in fine print. Sinha also said that Sebi is trying its best to create a conducive climate for startups to fuel India’s growth story by way of restricting their migration to countries such as Singapore and the US.

Delivering the keynote at an interactive session with reporters, at the PHD Chamber of Commerce and Industry here, Sinha said, “Startup and SME IPOs have begun to develop in India. The perception, however, is building that startups are flying away from India, and better performing in wooing investments in countries like the US and Singapore. But, this remains a perception at a time when such a thing has begun to happen.”

Meanwhile, the market regulator also barred two firms — Vaastav ALR International and Bharat KrishiSamridhi Industries — and their directors from securities markets.

Sebi observed that these firms made issues of securities through NCDs and redeemable preference shares to over 50 persons each, which under the rules, made it a public issue of debt securities, and hence would require a compulsory listing on a recognised stock exchange.

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