Sebi eases pricing framework for preferential issues

Markets regulator Sebi on Thursday decided to ease pricing framework for preferential allotment with a view to easing fundraising for companies. It has decided to allow companies to consider two-week average price for pricing preferential share issue, Sebi said in a statement after the board meeting. Currently, any preferential share issuer has to consider the average of weekly high and low for 26 weeks.

Markets regulator Sebi on Thursday decided to ease pricing framework for a preferential allotment with a view to easing fundraising for companies. It has decided to allow companies to consider a two-week average price for pricing preferential share issues, Sebi said in a statement after the board meeting.

Currently, any preferential share issuer has to consider the average of weekly high and low for 26 weeks. The specified securities allotted on a preferential basis using this pricing formula will be locked-in for a period of three years. The option in pricing will be available for the preferential issues made between July 1, 2020, and December 31, 2020.

In addition, the regulator has also streamlined settlement regulations to make procedures faster and more effective. Besides, it has decided to amend insider trading norms.

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