The market regulator has taken some key decisions to address the concerns of companies coming up with the IPO issue so that better price discovery can be effected. For this, the otherwise five day timeline has been reduced to just 2 days for the IPO price announcement.
As per experts, the regulation per se IPO pricing announcement will enable better price discovery in the wake of global market volatility that can have a direct influence on market prices and sentiments.
The same way some stipulations and regulations concerning share buyback have also been amended.
Ajay Tyagi, chairman of the SEBI, "The new regulations are again aimed at simplifying language, removing redundancies, bringing them in line with Companies Act provisions and buyback period has been properly defined with a view to have clarity for the issuers and the shareholders".
Meanwhile the board of the market regulator decided to keep the limit of foreign investors shareholding unilateral across market platforms. Sub-brokers will soon be replaced and it is suggested that they can migrate to a new platform.
Also, the board is considering to increase the investment limit in case of anchor investors.