India Business Journal - SEBI eases norms for Follow-on Public Offers (FPOs)

MONEY

SEBI eases norms for Follow-on Public Offers (FPOs)

IBJ Bureau
Jan 26, 2021

The SEBI has relaxed framework for Follow-on Public Offers (FPOs), making it easier for promoters of companies to raise funds through this route. Earlier, promoters were mandated to contribute 20 per cent towards a company’s FPO. Besides, in case of any issue of capital to the public, the minimum promoters’ contribution was required to be locked in for three years. The markets regulator has done away with these norms for FPOs. The SEBI has said that the relaxation will be available for those companies which are frequently traded on a stock exchange for at least three years. Also, such firms should have redressed 95 per cent of investors’ complaints.