SEBI chairman CB Bhave, on Monday, increased retail investment limit by Rs 1 Lakh in an public issue
Market Regulatory body SEBI, in August, proposed to raise the limit for retail investors from Rs 1 Lakh to Rs 2 lacs. Way back in 2005, SEBI had increased this limit from Rs 50,000 to Rs. 1,00,000.
SEBI allows price discount for retail investors and company discount participating in initial public offers (IPOs)and follow-on public offers (FPOs). This discount is offered to attract retail investors into the market.
“The board has approved disclosure norms of the life insurance IPOs and has tightened norms on preferential allotment to promoters,” he said.
However, Mr C B Bhave, avoided to comment on MCX licence issue.
Apart from that SEBI also came out with guidelines for insurance companies who are looking to hit the capital market. SEBI and Insurance Regulatory and Development Authority (IRDA) have been working together for the framework to get life insurance companies to raise funds from the market and list in the capital markets and this framework is more or less ready.
This increment in retail investment limit is a positive sign, as Power Grid FPO is expected to open on 9th Nov 2010 till 12th Nov 2010 with following issues of Shipping Corporation of India and Manganese Ore India Ltd (MOIL) IPO and Indian Oil IPO in January 2011
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