SEBI denies immediate move to alter quotas during IPO allocation

Mumbai, May 16 (UNI) The Securities and Exchange Board of India (SEBI) today clarified that there was no immediate move to alter quotas fixed for various categories of investors during the time of initial public offers (IPOs).

Denying news reports, SEBI said that the existing system for IPOs under which quotas are provided for various class of investors remains unchanged.

An official statement issued by the market regulator stated that ''SEBI ;has no plans to do away with the existing systems for initial public offerings.'' Under the present system of allocations, 50 per cent of the net issue is available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs) out of which five per cent is available for allocation on a proportionate basis to mutual funds(MFs).

Fifteen per cent of the issue is available on proportionate basis for allocation to non-institutional bidders and at least 35 per cent of the net issue is available for allocation on proportionate basis to retail individual bidders.

UNI RRP/JJ PM SKB1945