SEBI Tightens Norms For Usage Of IPO Proceeds

Securities and Exchange Board of India has approved tightening of rules for usage of proceeds from initial public offers

Markets regulator Securities and Exchange Board of India (SEBI) has approved tightening of rules for usage of proceeds from initial public offers (IPOs), even as it cleared a series of amendments in various regulations. The move has come at a time when more than 60 public issues have hit the primary market in 2021 and companies have raised more than Rs 1.18 lakh crore through them.

The changes were effected during the meeting of the regulator's board on Tuesday.

Changes have been cleared for regulations governing foreign portfolio investors, alternative investment funds (AIFs), mutual funds, settlement proceedings and others.