About 200 Companies Would Comply With New SEBI Rule by 2013


Bangalore: A total of 200 listed companies would comply with the new rule of Securities and Exchange Board of India (SEBI), which stipulates 25% of public share holding, by June 2013, reports PTI quoting a top official.

"This in turn would infuse Rs30,000 crore worth of fresh shares into the Indian Stock Markets," a CII release quoted SEBI Chairman UK Sinha as saying at a session at Kumarkom in Kottayam on 29th December.

"The money coming to the capital market had declined by 30-50% across the world over the past few years. In India alone, Rs60,000 crore, which was expected to come through the capital market, had been shelved," he said.

The 2008 Global recession resulted in the slowdown of economic activities in initial public offering (IPO) markets across the world and this impacted India and decreased the countrys growth rate. But on a positive note, he pointed out that the economic activities had improved post August 2012 and the potential growth rate of the Indian economy remained at 8% despite adversities.

He said SEBI was very keen to conduct handholding sessions for potential companies in Kerala which are looking at IPO for raising capital.

Sinha said he saw a positive energy among the various companies from the state which are poised to become global brands in the coming years.

A new SEBI Branch would be opened here by April this year. Investors and companies in Kerala could utilise the branchs services for the speedy settlement of their respective queries or complaints.

SEBI would take initiatives in arranging meetings between startup companies in Kerala and Venture Capital companies, Private equity companies, Insurance and Mutual fund firms to ensure that startup ventures get guidance and assistance from them. Strict action would be taken against Investment Bankers if due diligence was not done before issuing an IPO.

 

Source: PTI