The Securities and Exchange Board of India (SEBI) is looking at simplifying the offer-for-sale process.
“It is true that we have received some inputs about offer-for-sale. That can be made little simple. SEBI is examining this,” said Mr U.K. Sinha, Chairman, SEBI. Through this process, a listed company can auction its shares to investors through an exchange.
He also said that the revised Initial Public Offering (IPO) guidelines have helped bring down the volatility in the pre-open market.
“The introduction of the call auction concept in the pre-open market has helped bring down the volatility on the listing day of IPOs. The last four IPOs have been free from any managed volatility,” said Mr Sinha.
Call-auction concept
SEBI had introduced this call-auction concept in January to help reduce price volatility and manipulation.
Mr Sinha also pointed out that the need for some pension reforms which had been pending for a long time.