to bring about reforms in the capital markets, particularly in the primary
effect to decisions taken at SEBI’s board
meeting on August 16, 2012. These include matters relating to both the
equity markets, where the SEBI (Issue of Capital and Disclosure Requirements)
Regulations 2009 have been amended,
and to the debt markets, where the SEBI (Issue and Listing of Debt Securities)
Regulations, 2008 have been amended.
contentious set of reforms relates to additional protection that SEBI has
sought to offer investors in initial public offerings (IPOs). This is by way of
(Framework for Rejection of Draft Offer Documents) Order, 2012 that deals
with specific circumstances where SEBI is entitled to reject an offer document.
reforms have generated a substantial discussion, principally on the ground that
a safety net mechanism takes away the equity risk of an investor, and that the
guidelines on rejection of offer documents effectively introduces merit-based
regulation of capital markets that was done away with the abolition of the
Controller of Capital Issues (CCI) following the liberalised economic policies
introduced in 1991.
detailed discussion and analysis of these proposals are available at the
Sundaresan in Business Standard;
on The Firm – Corporate Law in India.