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SEBI amends rule to Facilitate Ease of Doing for Companies Planning IPOs

Published on May 25, 2024
Current Context: The Securities and Exchange Board of India (SEBI) has indeed made amendments to facilitate ease of doing business for companies planning Initial Public Offerings (IPOs).
SEBI amends rule to Facilitate Ease of Doing for Companies Planning IPOs
  • Here are the key changes:
    • Change in Offer for Sale (OFS) Size: Any change in the size of OFS requiring fresh filing will be based on only one of the criteria — either issue size in rupee or number of shares.
    • Promoter Group Entities and Non-individual Shareholders: Promoter group entities and non-individual shareholders holding more than 5% of the post-offer equity share capital can now contribute toward the shortfall in minimum promoters’ contribution (MPC) without being identified as a promoter.
    • Non-promoter Shareholders: Non-promoter shareholders excluding individuals holding more than 5% of the post-offer equity share capital can contribute towards the shortfall in MPC.
    • Flexibility in Bid Closing Date: SEBI has provided flexibility in extending the bid closing date on account of force majeure events such as banking strikes or similar circumstances by a minimum of one day instead of the present requirement of a minimum of three days.

Question:

1. In case of force majeure events, what is the minimum extension of the bid closing date provided by SEBI?

  • A) One day
  • B) Two days
  • C) Three days
  • D) Four days
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