Sebi board OKs changes to IPOs, preferential issues
0Sebi board OKs changes to IPOs, preferential issues Mumbai: The board of the Securities and Exchange Board of India approved crucial changes to initial public offerings . These include restricting the amount that a company can use for unidentified acquisitions, increasing the lock-in period for anchor investors and approving credit rating agencies for monitoring issue proceeds. The regulator's board also approved tighter rules on the appointment of persons who had failed to get elected as directors, introduction of special situation funds to invest in stressed assets and revised settlement regulations. Minimum Price Band "Inability to raise money for future unidentifiable acquisitions would impact capital-raising plans of some unicorns, particularly, where such companies may not have any other use of capital and where existing shareholders are not keen to sell," said Yash Ashar, partner and head, capital markets, Cyril Amarchand Mangaldas. "Currently, AIFs can only invest in securities and hence carving out a separate AIF sub-category for special situation funds, which will then be permitted to purchase distressed loan books, will open up a new asset class for global investors and also increase liquidity in the system," said Tejesh Chitlangi, senior partner, IC Universal Legal.