SEBI committee examining e-IPO proposal

Chennai: A committee set up by market regulator SEBI to examine IPO-related issues is looking into a proposal to allow companies to sell shares through electronic Initial Public Offers (e-IPOs).

The proposed move would enable companies to sell shares electronically. Under such a system, investors would bid for shares online and would not be required to sign any papers physically.

"The committee set up by SEBI to undertake various issues relating to IPOs is looking into it (the e-IPO proposal). We are awaiting formal clearance from the Ministry of Corporate Affairs for the e-IPO process," SEBI Chairman U K Sinha said.

Asked about SEBI's proposal for reducing the number of days in the IPO process, he said, "The current period of 12-plus days and how to reduce it is part of the committee's mandate."

Calling for more awareness among the public on financial markets, he said an international conference is proposed to be held in Goa in February as part of investor education initiatives.

A SEBI official said the conference will be co-hosted by SEBI and the Organisation for Economic Cooperation and Development (OECD).

The conference will explore domestic issues related to investor education as well as international issues and global trends, with special focus on Asia and its investor education needs, he said.

Source: Financial Express