Mumbai, Aug 22: The Securities Exchange Board of India has issued a notification amending the IPO guidelines, allowing greenshoe options, shortening the listing time of the public issue and mandating additional disclosures. The Sebi board had earlier announced that it would amend the disclosure and investor protection (DIP) guidelines for IPO.
The green shoe option refers to the possibility of allocating shares in excess of the shares included in the public issue.
Sebi also reduced the period between the closure of an issue and the listing and trading of shares, from 15 days to 6 days for book built issues. The proposed changes are primarily aimed at protecting the interests of retail investors. The disclosures in offer document has been strengthened.
Bureau Report