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IPO payment process eased

MUMBAI: The board of the Securities and Exchange Board of India (SEBI) in its meeting held here on Tuesday approved, in principle, the concept of marking lien on bank account as an alternative mode of payment in public and rights issues. The concept will enable the application money to remain in the bank account of the applicant till such time the allotment is finalized and thus eliminate the refund process. The modalities in this regard would be worked out separately.

The board decided to enhance the minimum net worth requirement for registration as a portfolio manager from the existing Rs. 50 lakh to Rs. 2 crore and to give effect to the requirement of maintaining continuous net worth separately for portfolio management activities. “The existing portfolio managers, whose networth is less than Rs.2 crore will have to increase it to at least Rs. One crore within a period of six months and thereafter to the prescribed networth of Rs. 2 crore in the next six months from the date of notification of amendment to the SEBI (Portfolio Managers) Regulations, 1993," SEBI stated in a press release after the board meeting.

It was also decided that portfolio managers should not float a scheme or pool the resources of the client in a way which is akin to mutual fund activity.

SEBI also approved certain amendments to the draft regulation on SEBI (Issue and Listing of Debt Securities) Regulations, 2008.

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