By Admin 
Sebi ease IPO proposals: Market Regulatory Securities and Exchange Board of India (SEBI) has relaxed the rules regarding the upcoming IPO. It is believed that Reliance Jio and National Stock Exchange (NSE) can get direct benefit of this step. According to the new provisions, companies whose post-iPO market capitalization will be more than Rs 50 thousand crore, will have to release 8% of their equity in public. Till now this minimum limit was 10%.
Apart from this, the minimum offer to public shareholders has been reduced to 2.5% for companies whose post-iPO market capitalization is more than Rs 5 lakh crore, which was 5% earlier.
Way easy for live
Brokerage firm City says that this step of SEBI will have a positive impact on the potential Jio’s IPO. City said that the value of Jio platforms has been estimated at $ 120 billion. Under the current rules, 5% public offer meant that Jio would have to bring an IPO of about 6 billion dollars, which is very big according to the Indian market. But after the new proposal, it will decrease to about $ 3 billion, which is in line with the capacity of Indian investors.
NSE also benefits
NSE can also benefit from these new proposals of SEBI, which is preparing for listing in the stock market with more than $ 50 billion values next year. SEBI chairman Tuhin Kant Pandey said on Thursday that the market regulator is considering introducing a regulated platform, where companies bringing IPOs will be able to do business after some revelations before listed.
He said in the program of industry body FICCI that many times investors do not have enough information before IPO. In such a situation, this initiative can prove to be helpful in making investment decisions.
Pre-IPO Trading Platform
According to SEBI’s plan, a new pre-IPO trading platform can be created. This platform will allow investors to trade shares in a regulated manner in a period of three days between the allocation and listed of IPOs. This initiative can replace the existing irregular ‘gray market’, which remains the basis of trading before the IPO. Overall, these new steps of SEBI will not only benefit Jio and NSE, but can also increase transparency and stability in the Indian stock market.
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