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PR No.150/2008 SEBI Board Meeting 1. SEBI Board decides to reduce time lines
for rights issues In
order to reduce the time duration for a Rights Issue, SEBI has decided to amend
the SEBI (DIP) guidelines and the Listing Agreement. Reduction in timeline approved
include: the number of days for the notice period for a Board Meeting will be
reduced from 7 days to 2 working days; the notice period for record date will
be reduced from 15/21/30 days to 7 working days for all scrips;
issue period will be reduced from minimum 30 days to minimum 15 days with a
maximum of 30 days and the time period for completion of post issue activity
will be reduced from 42 days to 15 days. These
changes in timeline would enable a right issue to be completed within about 43
days as against about 109 days currently available for a rights issue. The
reduction in timelines would reduce the market risk faced by investors and issuers
and would ensure faster turnaround of money for investors. 2. SEBI Board decides to revise pricing norms
for QIP and Preferential Allotment SEBI guidelines for preferential and QIP require that
the floor price for issue of securities shall be higher of the average of the weekly high and low of the closing prices
of the shares during the two weeks or six months preceding the relevant date.
The relevant date is defined as a date which is 30 days prior to the date when
shareholders’ meeting is held to approve the issue. In order to align the
present pricing norms to the market, SEBI Board has decided to revise the pricing
norms for QIP and Preferential allotment to the following effect: · Floor price may be based on the two weeks average for
making a QIP or for making preferential allotment to QIBs. · Relevant date for QIP shall be the date on which the
Board of the company or the Committee of Directors duly authorized by the Board
of the company meets to take the decision to open QIP. No change is
contemplated in relevant date for preferential allotment as the resolution for
preferential allotment is valid only for 15 days as against one year for QIP. 3. SEBI Board approves modification to Clause
41 of the listing agreement SEBI Board today decided to amend the Clause 41 of the
listing agreement. The major modifications are as follows: · Time limit
for submission of financial results to stock exchanges: A listed entity in addition to submitting quarterly
and year to date standalone financial results within one month of end of the
quarter may also submit consolidated financial results to the stock exchange within
two months from the end of the quarter. · Publication
of financial results: A listed entity
opting to submit consolidated financial results in addition to standalone
results to the stock exchanges shall be required to publish consolidated
financial results only. · Limited
review report to be placed before Board of Directors: A listed entity would be required to place the limited
review report on un-audited financial results before its board of directors /
committee before submission to stock exchanges only if the variation (as
defined in present Clause 41) between un-audited financials and financials
amended pursuant to limited review for the same period exceeds 10%. · Submission
of limited review report in case of last quarter: Where the listed entity chooses to submit un-audited
financial results for the last quarter (instead of submitting audited financial
results for the entire financial year within 3 months of end of financial year),
the limited review report shall be submitted for the last quarter also. 4. Standardising
format of Abridged Schemewise Annual Report and
reduction in time period for dispatch to the Mutual Fund unit holders The Board in its meeting held on 5. SEBI Regional Office at Ahmedabad The Board today approved the opening of Western Regional Office of SEBI
at Ahmedabad.
This office will function in line with the functioning of our other
three Regional Offices at Mumbai
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