SEBI amends its DIP guidelines

Mumbai, May 8 (UNI) The Securities and Exchange Board of India (SEBI) today amended the SEBI (DIP) Guidelines, 2000, according to which listed companies can now raise funds from domestic market by making placements of securities with Qualified Institutional Buyers (QIBs).

The provisions in the guidelines with respect to the placement such as pricing, disclosure, lock-in, validity of resolution, tenure of convertible securities and other procedural aspects have been to a large extent aligned with the existing provisions prevalent for GDR and FCCB offerings, a SEBI release stated here today.

The guidelines would make the Indian markets more competitive and efficient, besides being a step towards reducing the export of the capital market, the release said.

The companies, which are listed on stock exchanges having nation-wide trading terminals and are satisfying the minimum public holding requirements specified in the listing agreement, will be eligible to raise funds through qualified institutions placements, the release added.

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