SEBI approves several amendments, extends lock-in period of anchor investors to 90 days

New Delhi: The Board of Securities and Exchange Board of India (SEBI) on Tuesday made several amendments including extending the lock-in period to 90 days for anchor investors.

The market watchdog approved changes to the rules relating to the issue of capital and disclosure requirements.

“The existing lock-in of 30 days for 50 per cent of the allotted share to the anchor investor will continue and for the remaining portion, the lock-in of 90 days from the date of allotment will be applicable for all issues opened on or after April 1. 2022,” the market regulator said in a statement.

The decision comes at a time when shares of food delivery company Zomato and Paytm’s parent company One97 Communications fell 9 per cent and 13 per cent, respectively, when they had a mandatory one-month lock-in period for anchor investors. Finished.

In case of book built issue, the minimum price band for all issues opened on or after notification in the Official Gazette should be at least 105 per cent of the floor price.

The SEBI board also decided to restrict investors holding more than 20 per cent stake to sell a maximum of 50 per cent of their shares through Offer for Sale (OFS). It also approved amendments to the rules governing alternative investment funds, foreign portfolio investors.

SEBI rationalized the time period for filing settlement applications by entities to 60 days from the date of receipt of show cause notices.

Changes have been approved in the rules governing foreign portfolio investors, alternative investment funds (AIFs), mutual funds, settlement procedures, etc.

SEBI has also decided to introduce provisions relating to the appointment or reappointment of persons who fail to be elected as directors, including whole-time directors, managing directors, in the general meeting of a listed entity.