Sebi frames fresh norms for pref issues to simplify ops

Securities and Exchange Board of India has put in force amendments to its disclosure and investor protection guidelines, 2000, to strengthen provisions for preferential issues and simplify operational procedures. The regulator has approved certain modifications to ensure transparency, efficiency in the market and also streamline and simplify the existing procedures, a Sebi release said here today.

On the guidelines for preferential issues, Sebi said they have been amended to restrict sale by shareholders who are allotted shares on preferential basis and impose lock-in condition on pre-preferential shareholding from the relevant date till six months after date of allotment. Under the revised norms the allotment period for preferential share would stand reduced from existing 30 to 15 days,and the guidelines would help in corporate debt restructuring. chemes.