India Regulator Says Looking to Simplify Share Auction Process
06/08/2012| 04:29am US/Eastern
By Sourav Mishra and Khushita Vasant
MUMBAI--India's capital markets regulator Friday said it is looking to simplify the recently introduced offer-for-sale process that enables listed companies to auction shares to investors through exchanges.
"We are hoping to look into ways and means on how to improve that system and make it easier for corporates," Securities and Exchange Board of India Chairman U.K. Sinha told reporters on the sidelines of a conference.
The process allows founders to sell stakes through stock exchanges instead of conducting a full public offering, saving on paperwork and time.
However, recent share sales through this process, such as those of Oil & Natural Gas Corp. and Wipro Ltd., received tepid responses.
Mr. Sinha also said that SEBI wasn't looking at extending the deadline for all listed companies to increase their minimum public shareholding to 25%.
Private-sector companies must cut founders' stake to adhere to the rules by June 13, 2013, while the deadline for state-run firms is Aug. 13, 2013.
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