Published on 7/03/2018 3:37:06 PM | Source: Equirus Securities Pvt Ltd

Equirus capital Monthly tracker- February 2018 - Equirus Sec

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Regulatory updates

SEBI Circular | QIP route to meet MPS threshold

* In its circular dated Feb 22, 2018, SEBI has included QIP as a method to comply with minimum public shareholding thresholds (MPS)

* At the moment, compliance with MPS is mandatory to raise capital via QIP, which is by itself a dilutive instrument

* Expected to save time, cost and effort for listed entities to comply with MPS requirements while raising capital

* Also expected to provide potential QIP opportunities in the universe of companies listed in the last 3 years

* SEBI has also approved share sale by promoters up to 2% of the outstanding capital as a way to meet MPS threshold.

SEBI Circular | Compensation to Retail Investors in an IPO

* Via its circular dated Feb 15, 2018, SEBI has approved a mechanism for reimbursing Retail Investor grievances in IPO applications

* The mechanism specifically addresses procedural lacunae on the part of SCSBs, and prescribes a formula to arrive at the compensation

* The move is expected to arm retail investors against poor grievance resolution mechanisms employed by SCSBs.

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