Pay full amount if time between IPO, listing is less: Sebi

Speaking at the Euromoney Conference, Sebi chief CB Bhave said that all investors should pay up the entire money if the time duration between an IPO and its listing is reduced. “FIIs have to put up margins, retail investors have to pay 100%, this is related to a time gap between the last day of subscription and the day the securities get listed. If the time is crunched then there’s no reason why everyone cannot pay all upfront,” Bhave explained.

On the P-note registration issue, Bhave said, “Since October end, when this policy was announced, 190 FIIs and 470 sub accounts have registered with us, this is good progress. We take 15 days to three weeks to register FIIs unless the applications are incomplete where some correspondence is needed.”

On private equity funding, he said, “We don’t, in our FII regulations, have any category like private equity funds. There are different entities entitled for registration as FIIs in the Indian market, as long as they fall in one of those categories. We don’t even recognise hedge funds as a separate category.”

On the primary market, Bhave said, “The present process which requires three or four weeks is not acceptable in today's state of modern infra in the country, we want to reduce this. In a few months we will tell the markets what our road map is and how we plan to crunch this time lag between the last date of subscription and listing date. We should be able to achieve this in lesser period of time.”

Source : MoneyControl