Monday, December 13, 2010



The capital markets regulator, Securities and Exchange Board of India (SEBI) has made some significant changes in the capital market regulations. It has tightened the framework for preferential allotment of shares to promoters' groups to prevent misuse of preferential allotments, warrants, and convertibles to manipulate share prices.
SEBI has also prescribed a specific pre-announced date for the credit of dividend and bonus shares so that investors can manage their cash or securities flow efficiently. Companies that make an acquisition just after the end of the latest disclosed financial year as stated in their draft offer documents, would henceforth be required to include a proforma financial statement, revealing materiality of the acquisition in terms of total book value in the balance sheet or the proportion of the acquired entity's income to total income.

SEBI also paved the way for insurance companies to list on the bourses. It said that insurance companies will have additional disclosures relating to the specific nature of the business. The market regulator also accorded qualified institutional bodies (QIB) status to insurance funds set up by the Department of Posts such as Postal Life Insurance Fund and Rural Postal Life Insurance Fund.

12 Dec, 2010, 01.04AM IST, Ashish Gupta,ET Bureau
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