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Our Bureau

Mumbai, Sept. 22

Any issue of Indian Depository Receipts (IDRs) which would allow a foreign company to list its equity shares on the Indian stock exchanges, would have at least 30 per cent of issue size reserved for retail investors, SEBI decided at its board meeting here on Tuesday.

IDRs which are still at a concept stage, would also have anchor investors on similar terms as applicable to public issues by domestic companies, the SEBI Chairman, Mr C.B. Bhave, said at a media briefing after the board meeting.

The ‘anchor investor’ for domestic public issues is a recent concept where, prior to the opening of a public issue, qualified institutional buyers(QIB) can pick up a maximum of 30 per cent from the 60 per cent of the net issue reserved for QIBs. There is a 30-day lock-in period mandated for anchor investors.

In another major decision, the SEBI Board decided that it would bring out applicable accounting standards to be followed by a listed company undergoing corporate restructuring by way of merger, demerger or amalgamation.

Such listed companies will have to submit an auditor’s certificate to the stock exchanges to the effect that the accounting treatment followed in respect of financials contained in the corporate restructuring scheme, is as prescribed by SEBI.

The Board will prescribe ‘applicable accounting standards’ through an amendment to the listing agreements, a news release from SEBI said.

The same accounting norms would also have to be followed by unlisted companies who are looking to list.

“An unlisted company undergoing similar corporate restructuring and proposing to make an IPO shall make disclosures in the DRHP in terms of Accounting Standard 14. This will be mandated through the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009,” SEBI said.

In an amendment to the SEBI Takeover Regulations, the Board has extended disclosure requirements on two per cent acquisition or divestment by those who hold shares or voting rights of between 15 and 75 per cent in a company. Earlier the range was 15-55 per cent.

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