The Hindu Business Line : ONGC: Only associates of lead managers can issue PNs

THE Government has stated that only the associates of book-running lead managers will be allowed to issue participatory notes for the public offer for sale of 10 per cent equity in ONGC to attract large foreign investors.

"There is no change in the policy or in the structure on issuing participatory notes. It is regulated by SEBI and will continue to do so. The only change is that the associates of book-running lead managers will be allowed to issue the notes for which the guidance and prudential norms of SEBI will apply as usual," a senior Disinvestment Ministry official said, adding that this was specific to the ONGC issue and not to any other transaction.

"The book-running lead managers themselves cannot issue the notes," he emphasised. SEBI had last week informed that the associates of book running lead managers can be allowed to issue PNs subject to certain caveats for the ONGC offer. "We are going ahead with the plan," the official said.

The Government will launch the ONGC public offer for sale of 14.7 crore shares on Friday through a 100 per cent book-built route for which it has announced a price band of Rs 680-Rs 750 per share.The issue will remain open from March 5 to 13 and is expected to bring over Rs 10,000 crore to the Government.

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