Capital market regulator Sebi on Friday announced a number of measures, including relaxation in sweat equity revenues and various disclosure rules for companies with the latest technology in the new era. These steps are aimed at promoting startups, reducing compliance burden and increasing the ease of doing business. In addition, the Board of Directors of the Securities and Exchange Board of India (SEBI) has given principle approval to adopt the concept of ‘controlling shareholders’ by the promoters of the listed companies. In addition, the minimum ‘lock-in period’ has also decreased since the initial share sale.
At its meeting on Friday, the SEBI Board of Directors approved amendments to the regulation concerning the operation of alternative investment funds. SEBI has decided to relax the number of sweat equity it can offer to technology companies of the new age listed on the Innovators Growth Platform (IGP). The move comes at a time when many startups are attracting significant investment from foreign investors.
Petrol prices today: No change in petrol and diesel prices today, check your city rates
According to the press release, in the case of companies listed in the IGP, the annual limit of Sweat’s equity shares will be 15 per cent, while the overall limit will be 50 per cent of the paid up capital at any given time. This enhanced aggregate limit is applicable for 10 years from the date of formation of the company. For companies trading in the core market, the annual sweat equity limit is 15 per cent, while the overall limit is limited to 25 per cent.
SEBI consolidates two rules … SEBI (Share Based Employee Benefits and Sweat Equity) Rules, 2021. Sweet equity refers to a company’s cashless shares to its employees. Startups and promoters often use sweat equity to finance their companies. In addition, in the event of an employee’s death or permanent disability (as defined by the company), all stock benefit plans will have a minimum scheduled period and a ‘lock-in period’.
SEBI’s Board of Directors has approved a proposal to adopt the concept of controlling stakeholders from promoters. After the initial public offering it has decided to reduce the minimum ‘lock-in period’ for innovators. If the SEBI is called a ‘lock-in period’, the material of the issue is a sale proposal or a financing proposal, rather than the cost of capital for the project, the date of issue and the public issue (FPO) of the initial public issue. Promoters must ‘lock in’ at least 20 per cent of their offer for 18 months. Currently, the ‘lock-in period’ is three years.
In addition, in all these cases, the excess of the promoter’s minimum contribution will be restricted to six months instead of the current one year, Sebi said. The Board of Directors of SEBI has agreed in principle to facilitate the adoption of a ‘controlling shareholder’ from the concept of promoters to facilitate progressive and comprehensive adoption. In addition, SEBI has eliminated certain disclosure requirements for individual acquirers and promoters of companies. Regulators have amended the rules to help boost the corporate bond market. According to the statement, amendments to the acquisition rules have been approved in view of the implementation of System-Based Disclosures (SDD).
“Some disclosure commitments to acquirers / promoters, etc., will expire on April 1, 2022,” the regulator said. It is not. The acquisition of five per cent of the shares and the subsequent two per cent difference and the annual shareholder disclosure shall apply. Also, the market regulator approved amendments to the regulation of market infrastructure firms (MIIs), including alternative investment funds and stock exchanges. The idea is to simplify compliance requirements with ease of doing business.
According to the statement, the board of directors approved two proposals. This includes eliminating the need for SEBI’s subsequent approval to acquire 2-5 per cent of all eligible shareholders. “The provisions applicable to listed stock exchanges / deposits are not related to determining the ‘fit and proper’ status of persons holding less than two per cent equity. .
“… The decision that qualified shareholders do not require regulatory approvals for acquisitions up to 5 per cent, will seek to remove barriers to approval by MII (Market Infrastructure Agency),” he said. Stage. ”
These 11 banks, including SBI, offer e-voucher vouchers and checklists
