The Securities and Exchange Board of India (SEBI) on Saturday said that qualified institutional buyers (QIBs) would have to make a 100 per cent payment when they applied to buy stock of companies in initial public offerings (IPOs).
“QIBs will have to make a 100 per cent payment in line with what other investors are required to do on all issues that open on or after May 1,” SEBI Chairman C. B. Bhave told reporters here.
At present, institutional buyers are required to pay only 10 per cent at the time of subscription.
“The decision will bring parity between institutional and other investors,” Mr. Bhave said.
Mr. Bhave also said the regulator was working on reducing the time gap between the closing of an initial public offering and its listing on the stock exchanges to one week from the current waiting time of 20 days.
Besides, it has made some recommendations for derivatives contracts, which will first be discussed with the bourses before implementation.
On allowing physical delivery in derivatives, Mr. Bhave said, “The SEBI board has decided to allow physical delivery in the derivatives segment”
