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Sebi eases preferential allotment rules, plans dispute resolution rejig

The Securities and Exchange Board of India (Sebi), in November last, published the ‘Investor Charter’ for securities markets to further strengthen its efforts to protect investor interests, promote transparency in markets and enhance awareness, trust and confidence among investors.

By: ENS Economic Bureau | New Delhi |
January 18, 2022 3:13:49 am
Securities and Exchange Board of India (Sebi) | Express Photo

markets regulator Sebi is examining introducting an alternate dispute resolution mechanism, with an aim to provide an effictive system for settling disputes between investors and regulated entities, a release said on Monday.

The Securities and Exchange Board of India (Sebi), in November last, published the ‘Investor Charter’ for securities markets to further strengthen its efforts to protect investor interests, promote transparency in markets and enhance awareness, trust and confidence among investors.

The regulator has also relaxed pricing norms and lock-in requirements to make it easier for companies to raise funds through preferential allotment of shares. It has allowed pledging of shares allotted to promoter or promoter group under preferential issue during the lock-in period, according to a notification.

In addition, Sebi has said any preferential issue resulting in a change in control or allotment of more than a 5 per cent stake will require a valuation report from a registered valuer.

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Further, Sebi has cut the timeline for filing settlement applications to just 60 days from the current 180 days in its effort to make the system more efficient.

In another notification, Sebi has put a cap on the usage of initial public officer (IPO) proceeds for unidentified future acquisitions and restricted the number of shares that can be offered by significant shareholders. —WITH PTI

Govt gets Rs 6,651 cr dividend

New Delhi: The government has received more than Rs 6,600 crore as dividend tranches from a dozen central public sector enterprises (CPSEs), a senior official said.

In a tweet on Monday, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said, “Government has received about Rs 972 crore and Rs 2506 crore from Nuclear Power Corporation of India Limited (NPCIL) and Power Grid Corporation of India Limited as Dividend tranches.”

Hindustan Aeronautics, Bharat Electronics, HLL Lifecare Ltd, FAGMIL and NSIC have given Rs 351 crore, Rs 149 crore, Rs 19 crore, Rs 12 crore and Rs 31 crore as dividend tranches, respectively, he added. “Government has received about Rs 1605 crore and Rs 913 crore from NMDC and GAIL respectively as Dividend tranches,” he said in another tweet.

About Rs 42 crore, Rs 26 crore and Rs 25 crore were received from Central Warehousing Corporation, National Highways Infrastructure Development Corporation and WAPCOS, the DIPAM Secretary further tweeted.

In aggregate, the government received Rs 6,651 crore as dividend on Monday from these 12 companies. With this, total proceeds from dividend from public sector enterprises reached close to Rs 40,000 crore for financial year 2021-22 so far. —WITH PTI

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