In a move that aims to recognise the increased size of the economy, market regulator Securities and Exchange Board of India (SEBI) on Monday doubled the application size for retail investors in public offerings from R1 lakh to R2 lakh. The board decided that the maximum application size for retail individual investors may be increased to R2 lakh across all issues as the limit was fixed long time back and needed revision. “The issue before the board was that the limit was fixed long time back and if you take just the inflation into account, there is a justification for enhancing the limit,” said Sebi chairman C.B. Bhave.
Sebi board on Monday also gave its green signal for the public issues of life insurance companies. Bhave said that they may come up with their IPO when they are ready. “When life insurance companies thought of coming to the market, the question was do they have a mechanism for the IPO,” said Bhave.
Sebi, however, has demanded for some additional disclosures by the insurance companies in line with the specific nature of the sector.
It has asked for disclosures on risk factors specific to insurance companies, overview of insurance industry and glossary of terms used in the insurance sector. The regulator has, however, decided to waive the requirement of a monitoring agent.
“Normally in case of issues over R500 crore, the company has to appoint a monitoring agent for the use of funds. This requirement has been done away with for banks. And on similar lines the board decided that it need not be applied to insurance companies,” he said.
On the issue of the new takeover norms, Bhave said that a decision can be expected in the next board meeting, the date of which he did not divulge.
“In the next board meeting there will be a discussion on the issue and hopefully a decision would be taken,” said Bhave.
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