new norms on calculating open offer price
The Securities and Exchange Board of India (Sebi) Chairman C B Bhave in a Sebi press conference said that the board has decided that listed companies must declare dividends on per share basis. He further said that the timeline for bonus issues will be reduced.
IPO price band can now be announced two-days prior to the issue opens. The upfront payments for warrants are also hiked to 25% vs 10%. Sebi will also amend norms on calculating open offer price.
Bhave also stated that Sebi is developing mechanism to deal with special cases like Satyam. On Satyam, he further said that Sebi has received request from Satyam Board on open offer norms. Satyam Board said that the company’s share price before January 7 will not valid. SEBI has recognised special situation of Satyam and is working out transparent mechanism to arrive at valid open offer price.