SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
R11,1B ( DIP) Series Circular No. 2 (98-99)
February 12, 1999
To
All Registered Cate Merchant Bankers
Dear Sirs,
Sub.: Guidelines for Disclosure and Investor Protection Clarification No. XXIII
SEBI has issued clarifications to the Guidelines for Disclosure and Investor Protection in the recent past in order to strengthen the disclosure norms and bring out the reforms in the Primary Market,
The SEBI Board, in its meeting held on September 7, 1998, considered the report of the “Informal Group on Primary Markets” headed by Dr. Shankar Acharya. The Board welcomed most of the recommendations of the group and has decided to consider them in the overall policy framework for Primary Market. Certain specific recommendations of the group relating to popularizing the facility of book building and reducing the number of mandatory collection centres for public issues are being implemented through this clarification.
Part A of the clarification pertains to revised Book Building facility.
Part B of the clarification modifies the requirement of mandatory collection centres as provided in clarification XII dated September 25, 1995.
In view of the strategic importance of infrastructure projects, the Board has also decided to grant specific relaxations for Public Issues by infrastructure companies. These relaxations are being provided under Part C of this clarification.
The present guidelines have been issued in pursuance of Sub-Section (1) of Section 11 of the Securities and Exchange Board of India Act, 1992 for orderly development and growth of the Capital Market.
The present guidelines shall come into force from 8th day of September, 1998 and, if so desired by the issuer company, will be applicable to:
1. Offer Documents pending with SEBI, and
2. The public issues in respect of which the offer documents are not yet filed with the Registrar of Companies.
Please acknowledge receipt.
Yours faithfully,
(P. GAHROTRA)
SR. EXECUTIVE DIRECTOR
