The
Securities and Exchange Board of India (SEBI), on recently, approved the IPO
grading mechanism “voluntary” instead of “mandatory”, amending SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2009.
“Considering
the requests received from market participants, investor associations and
Association of Investment Bankers of India (AIBI), the recommendation of the
advisory committee of SEBI, and to align with the principles laid down by
Financial Stability Board (FSB) on reducing the reliance on Credit Rating
Agencies, the Board approved the proposal to make the IPO grading mechanism
“voluntary” as against the current provision of the same being ‘mandatory’,”
said SEBI.
New
rules for foreign investors
