14 June, 2021

Par For The Bourse

SEBI plans a slew of measures to make investing in stocks safer. Will Mr Average bite?

Par For The Bourse
Is SEBI stepping on the gas to woo back small investors and make Indian bourses a safer and fairer place for them? As a first step, the market watchdog recently brought within its purview preferential allotments made by companies to its promoters or other investors trying to increase their stake. From now on, a SEBI standing committee will examine whether preferential allotments are changing the management control of a company and if so, as per the SEBI takeover code, ensure an open offer is made to other investors.

In the past few years, small investors always missed out on the preferential allotment party even as friends and associates of promoters besides eventual acquirers of companies were sold shares.

And that's hardly all. In the next few months, expect a number of decisions aimed at cajoling the scam-scarred and scared small investors into putting their hard-earned millions in the stockmarket. "We have an action plan ready to boost investor confidence in the market," declares SEBI chairman G.N. Bajpai. Market sources say a number of subcommittees set up by SEBI...

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