SEBI is the regulator for securities markets in India. The document outlines several new guidelines from SEBI regarding public issues and listings on stock exchanges. SEBI has proposed a dedicated SME board for trading shares of small and medium enterprises. It has also made IPO grading compulsory, changed norms for employee reservations in IPOs, and requires minimum 50 investors for SME listings. The guidelines aim to help small companies raise funds and provide more transparency for investors.

1. SEBI GUIDELINES REGARDING NEW ISSUES
By
Suryadev Maity
Sec - B

2. • SEBI - The Securities and Exchange Board of
India is the regulator for the securities market in India. It
was established on 12 April 1992 through the Securities
and Exchange Board of India Act, 1992.
INTRODUCTION
Agency overview
Formed 12 April 1992
Jurisdiction Government of India
Headquarters Mumbai, Maharashtra
Employees 643 (SEP,2011)
Agency executive U. K. Sinha, Chairman

3. MEANING OF NEW ISSUE :-
It refers to the set-up which helps the
industry to raise the funds by issuing
different types of securities. These
securities are issued directly to the
investors (both individuals as well as
institutional) .

4. • The regulator has introduced the optional pure
auction method of book building in share sales. In pure
auction format, the company mentions a floor price.
Investors are free to bid at any price above the floor price,
and shares are allotted on a top-down basis, starting from
the highest bidder.
• The regulator at its board meeting also took a
decision that would help investors avoid waiting for a full
year to know the correct financial health of a company as
companies would have to disclose their balance sheets on a
half-yearly basis. Internationally, most jurisdictions require
disclosure of balance sheet items on an interim basis
whereas in India companies disclose only interim financial
results.
N E W I S S U E S :-

5. • SEBI has proposed to setup a SME (Small and
Medium Enterprise) Board dedicated for trading the shares
of small and medium scale enterprises (SMEs) who,
otherwise, find it difficult to get listed in the main
exchanges. The concept originated from the difficulties faced
by SMEs in gaining visibility or attracting sufficient trading
volumes when listed along with other stocks in the main
exchanges.
• SEBI has decided that companies listed on the SME
exchanges would be exempted from the eligibility norms
applicable for IPOs and FPOs prescribed in the Securities
and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2009 (ICDR).
N E W I S S U E S :-

6. • SEBI has made few changes to the existing regulations
regarding IPO issues to employees. Currently the ICDR
regulations permit reservation up to 10% of issue size to
employees in public issues. However, there is no ceiling on
number of shares that could be allotted. The Board decided to put
a ceiling of Rs.1 lakh on the value of allotment that can be made to
an employee under employee reservation category and to permit
reservation up to 5% of the post issued capital instead of 10% of
issue size.
• SEBI has made changes to the minimum number of
investors in the SME which stipulates that there has to be
minimum 50 investors at the time of IPO. Previously there was no
restriction regarding the minimum number of investors
N E W I S S U E S :-

7. • SEBI has also made IPO Grading is made
compulsory. IPO grading is the grade assigned by a Credit
Rating Agency registered with SEBI. All IPOs that come out
in India need a mandatory IPO grading
• SEBI has changed the norms regarding the merchant
bankers/underwriters which stipulate that the merchant
bankers to the issue will undertake market making for three
years through a stock broker who is registered as market
maker with the SME exchange.
N E W I S S U E S :-

8. Thank You…