Regulations of primary Market
¸ Entry Barriers for unlisted companies modified as dividend payment in immediately preceding 3 years
¸ A listed company required to meet entry form if post issue net worth is higher than pre issue net worth
¸ Full payment before making a public/ rights issue
¸ The promoter s contribution for public issues made uniform at 20% irrespective of the issue size
¸ Written consent from shareholders for promoter s contribution
¸ Appointment of Registrar
¸ Promoters and their background -Promotors details
¸ The SEBI rules and regulations 1993 have been amended for the relationship between issuer and Registrar
¸ SEBI allowed debt instruments to the stock exchanges
¸ Only body corporate to be allowed to function as Merchant bankers- only on entity
¸ NBFCs such as Accepting deposits, leasing, bill discounting etc., will not be allowed to be undertaken by a Merchant banker.
¸ Book Building is a good concept and represents a capital market which is in the process of maturing.
Book-building is all about letting the company know the price at which you are willing to buy the stock and getting an allotment at a price that a majority of the investors are willing to pay. The price discovery is made depending on the demand for the stock.