new news.......... Market regulator Sebi has made it mandatory for - TopicsExpress



          

new news.......... Market regulator Sebi has made it mandatory for companies to disclose the source of funds coming through preferential allotment of shares, a move aimed at discouraging the use of front entities by promoters to increase their stake. Sebi had last month also made it compulsory to allot preference shares in dematerialised form to ensure adequate audit trail and apply lock-in provisions. "Shares allotted in the preferential issue shall not be transferred till trading approval is granted for such shares by the stock exchanges. Further, the lock-in period shall commence on the date of such trading approval," Sebi said in a press statement on June 25 after its board meeting. Investors subscribing to preferential issues will now have to do so from their own bank accounts. Besides, the issuing company will have to disclose the natural persons who ultimately own or control the allottee.
Posted on: Fri, 12 Jul 2013 17:58:06 +0000

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