Preferential issues: Tight norms mooted

A panel of the Securities and Exchange Board of India (Sebi) has proposed a higher lock-in period of three years for promoters in preferential allotments from the current one year.

A new method to calculate minimum pricing of preferential allotment, differential voting rights and listing of such shares have also been proposed. An additional requirement proposed is to extend the non-transferability condition to the pre-preferential issue holdings of the promoter and their relatives.