Which of the following statements is/are correct with reference to the Securities and Exchange Board of India (SEBI)?
A. It recently proposed to rationalise the definition of ‘promoter group’ and move to the concept of ‘person in control’ as well as lower the minimum lock-in periods for promoters and other shareholders after an IPO.
B. The current definition of ‘promoter group’ focusses on encompassing holdings by a common group of individuals or persons and often results in including unrelated companies with common financial investors.
C. Both A & B
D. None of these
Explanation:
Securities and Exchange Board of India (SEBI) proposed to rationalise the definition of ‘promoter group’ and move to the concept of ‘person in control’ as well as reduce the minimum lock-in periods for promoters’ and other shareholders post an IPO. SEBI has suggested rationalising the definition of ‘promoter group’ as the current definition focusses on encompassing holdings by a common group of individuals or persons and often results in including unrelated companies with common financial investors. Citing the changing investor landscape, SEBI said there was a need to revisit the concept of ‘promoter’ to a concept of ‘person in control’ and a period of three years has been proposed for such a shift over in a smooth and progressive manner without causing disruption.
