Bangalore: Investing in mutual funds might become more expensive as market regulator SEBI has announced extensive changes in its rules for Mutual Funds (MFs) and Initial Public Offerings (IPOs). SEBI will also consider providing capital protection to part of investments made by very small investors in IPOs, although the move is being opposed by investment bankers and certain other sections of the industry. NDTV has brought down ten facts about these major reforms which will impact you as well.

1. As per the new reforms there will be more transparency in the IPOs as for ‘general corporate purposes’, companies will not be allowed to raise more than 25 percent of the total size of the IPO. This move will also prevent any misuse of funds raised by companies through IPO.

2. Companies putting forward an IPO are required to release the price band five days before the actual bidding takes place. Till date, the price bands were disclosed before two days.

3. As per the new reforms a minimum shares will be allotted to the IPO investors. It has also approved for procedure called e-IPO, which is an electronic bidding platform which facilitates bidding from all over the country in a cost effective manner.