The Securities and Exchange Board of India (SEBI) has proposed to liberalise the Issue of Capital Disclosure Requirements (ICDR) by easing lock-in requirements for promoters and rationalising the definition ‘promoters’ group.
SEBI has clarified that lock-in period for promoters can be brought down to justone year instead of three years as currently prevailing. As well as lock-in requirements on promoters’ shareholding in excess of 20 percent and pre-IPOnon-promoter shareholding can be brought down to just by 6 months from a year.
Further, it has proposed to replace the concept of ‘promoter’ with ‘person in control’. SEBI has also proposed to rationalise the definition of ‘promoters’ group’ by dropping the clause which treated group of individuals or companies holding 20 percent or more stake in a company as promoter.
However, SEBI is seeking public feedback, if the proposal implemented, it will ease the regulatory burden for listed firm and will also encourage more companies to list.