The capital markets regulator, Securities and Exchange Board of India (Sebi) eased disclosure norms for initial public offerings (IPOs) and tightened the definition of ‘promoter group’ to prevent fraudulent transactions. IPO issuers will now be allowed to announce the price bands two days before the issue opens for subscription instead of the previous five days, the new Sebi guidelines said. The new IPO norms include ‘immediate relatives’ within the definition of promoter and promoter groups. Sebi also said that financial disclosures will need to be made for three years, compared with the earlier five years. Besides, institutional investors, such as alternative investment funds, will be able to contribute up to 10% of what the promoter is required to offload in an IPO.

(DealStreet Asia)