MUMBAI: The Securities and Exchange Board of India (SEBI) on Monday made grading of all Initial Public Offerings (IPOs) mandatory for which draft documents are filed with it after April 30.
"It shall be mandatory to obtain grading from at least one credit rating agency. The issuer shall be required to disclose all the grades obtained by it for its IPO in the prospectus, abridged prospectus, issue advertisements and all other places where the issuer is advertising for the IPO,'' SEBI said in a notification to all registered merchant bankers and stock exchanges.
SEBI on Monday amended its Disclosure and Investor Protection Guidelines, 2000 to incorporate various aspects related to the public issue and preferential allotments by companies.
SEBI has also decided to amend the preferential allotment guidelines, so as to enable companies with listing history of less than six months to raise money through preferential allotment, subject to complying with the modified pricing and disclosure norms. Further it has been decided to amend the guidelines to provide that securities which have been pledged with banks or financial institutions as collateral security for loans granted by them would not be eligible for computation of minimum promoters' contribution.