SEBI's Reforms Push

THE BOOMING primary market has got a boost from the Securities and Exchange Board of India. The financial disclosure requirement for companies going for IPOs has been reduced from five years to three years. The grading of IPO has also been done away with. For broad-basing investor participation and better price discovery, it has also broadened the anchor investor category by including insurance companies, private equity and venture capital funds. The new regulation for making price band announcement two days before the issue from the earlier five is also in line with global standards. These guidelines will go a long way in boosting the confidence of issuers and investors.