Which of the following statements is/are correct with reference to the follow-on public offers (FPOs)?

Answer & Explanation

Option: Both A & B

Explanation:

SEBI relaxed the framework for follow-on public offers (FPOs), a move that will help promoters of companies to raise funds more easily through this route. The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been done away with by the regulator, as per a notification. Earlier, promoters were mandated to contribute 20% towards a FPO.