BSE revises norms for IPO/FPO of cos
The Bombay Stock Exchange (BSE) has revised norms for Initial and Follow-On Public Issue (IPO/FPO), which will be applicable from August 1, 2006, to ensure that companies fulfill all requirements before getting listed.
By PTI |
MUMBAI: The Bombay Stock Exchange (BSE) has revised norms for Initial and Follow-On Public Issue (IPO/FPO), which will be applicable from August 1, 2006, to ensure that companies fulfill all requirements before getting listed.
BSE has divided companies into large cap and small cap companies for this purpose. Large cap companies are those with issue size of Rs 10 crore and above and market capitalisation of Rs 25 crore.
Small cap companies will be those with issue size of Rs 3 crore and market capitalisation of Rs 5 crore.
In case of an FPO for large companies the market capitalisation must not be less than Rs 25 crore while for small cap companies it shouldn't be less than Rs 5 crore. For both, the post-issue paid up capital has to be Rs 3 crore.
BSE may appoint an independent team of Chartered Accountants or Merchant Bankers to conduct a due diligence study, the cost of which will be borne by the company, a BSE release said.
ADVERTISEMENT
However, the requirement of a due diligence study for small cap companies may be waived if a financial institution of a scheduled commercial bank has appraised the project in the preceding 12 months, the release added.These norms would be in addition to Sebi (Disclosure and Investor Protection) Guidelines 2000.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
