SEBI redefines retail investor

MUMBAI, MARCH 29. The Securities and Exchange Board of India today raised the allocation for retail individual investors (RIIs) in book built issue from 25% to 35% and redefined retail investors as one who can apply for shares up to Rs. 100000 as against the previous ceiling of Rs. 50,000. Consequently, the allocation for non-institutional investors (NIIs) in the book-built issue would be reduced to 15% from 25%, SEBI said in a release here. Further, when the book-built issues are made pursuant to mandatory 60% allocation to qualified institutional buyers (QIBs), the reservation for retail investors and NIIs would be 30% and 10% respectively, SEBI said. At present, the allocation for retail investors, NIBs and QIBs is in the ratio of 252550. SEBI has also reduced the maximum bidding period under the book-built issue to three-seven working days from 5-10 days. The existing guidelines provided a maximum bidding period of 10 days extendable by three more days, if there is a revision in price band, it said. The listed issuers would get option to disclose the price band or the floor price at least a day before opening of bidding process, SEBI said adding now, all issuers making a public issue through the book building process had to disclose the price band-floor price in the prospectus/application form. The guidelines would be amended to improve content of data and ensure its uniformity in data display, it said. Meanwhile, SEBI has issued notification to extend the deadline for implementation of the revised Clause 49 of the Listing Agreement for Corporate Governance by nine months to December 31, 2005. — PTI