New Delhi: Even as the IPO scam has sent shockwaves through the Indian bourses threatening to send the markets tumbling, Sebi has move forward proactively to restore investors' confidence and put in place a mechanism for a check on any possibility of a similar scam in future.
In the post-scam situation, Sebi has made it mandatory for de-mat account seekers to submit a Pan card. For all de-mat accounts opened up till March 31, photocopies of Pan cards need to be submitted before October 1 this year.
Non-compliance will lead to suspension of accounts. Depository agencies say investors should have been given more time to comply.
While a Pan number is allotted within 10 ten days of application, getting the actual Pan card takes much longer. The government has said that efforts are on to reduce the processing time. But until that happens, investors will keep losing opportunities to participate in IPOs like that of Reliance Petroleum.
Sebi has also announced new norms for minimum public shareholding in listed companies. As per these norms, public shareholding will not include shares held by custodian or depository for ADR or GDR shareholders.
Companies would require maintaining public shareholding of 10% or 25%, whichever is applicable, on the basis of shares listed in India.
Sebi says the new norms will be effective from the first of May 2006. Government companies, infrastructure firms and companies referred to BIFR shall be exempted from the minimum shareholding norm.
Non-compliant companies will be given two years to meet the new listing norms, failing which they will be de-listed from the stock exchanges.
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