The measures taken by SEBI in the
primary securities market include

Eligibility criteria

• Bodies corporate with a track record of dividend payment for at least 3 years out of preceding five years only allowed to access the securities markets for raising capital through equity or instruments to be converted into equity; through a subsequent modification, payment of dividend by cash not allowed to be considered for the purpose of this eligibility criteria.
  
  
• The term "track record" of dividend payment defined to mean that the dividend must have been declared in the relevant year itself.
  
  
• A manufacturing company without the three year track record of dividend payment allowed to access the securities market if its project has been appraised by a public financial institution or a scheduled commercial bank and the appraising agency participates in the project by way of loan or equity to the extent of minimum 10% of the project cost Subsequently these norms made applicable to all types of companies.
  
  
• Banking companies which had received approval or license from RBI on or before April 16, 1996 and public sector banks exempted from the entry norms.
  
  
• Public sector banks given relaxation from pricing norms. They could freely price their shares on the basis of two years profitability as against three years track record of consistent profitability for other issuers. These changes were made as banks are regulated by the Reserve Bank of India.
  
  
• A listed company making a further issue of capital to the public, so that its expanded equity capital after the offer becomes more than five times the equity capital prior to the offer, also required to satisfy either the criteria of 3 year dividend payment track record or appraisal of and financial assistance to the project and by a scheduled commercial bank/ public financial institution. For this purpose, definition of public financial institutions broadened to include institutions included in or notified for the purpose of the Companies Act, 1956, state financial corporations and industrial development corporations established by central or state governments and similar financial corporations as approved for the purposes of clause (viii) of sub-section (1) of section 36 of the Income Tax Act, 1961.
  
  
• The practice followed by some issuers of making payment of any direct or indirect discount or commissions to firm allottees not allowed.