Sebi decides changes to preferential allotment norms on pricing, lock-in requirement
Zee News
For infrequently traded security, Sebi said a valuation report by a registered independent valuer will be required.
New Delhi: Markets regulator Sebi on Tuesday decided to relax pricing norms and lock-in requirements to make it easier for companies to raise funds through preferential allotment of shares.
In addition, the regulator has decided to allow pledging of shares allotted to promoter or promoter group under preferential issue during the lock-in period, according to a press release issued by Sebi after the board meeting.
To determine the floor price for frequently traded security, Sebi said the floor price for the preferential issue should be higher of 90/10 trading days' volume-weighted average price (VWAP) of the scrip preceding the relevant date.