SEBI
Sebi Walks the Talk; Harmonises
ICDR in Record Time
Market regulator’s intervention in critical regulations will help IPOs
discover better price. Investors stand to gain says Yagnesh Kansara
I
ndia’s initial public offering
(IPO) market has witnessed
record breaking mobilisation
of resources in the last two
years. There are more than 60
IPOs lined up in the remaining
part of calendar year 2018. In
this backdrop, the capital market
regulator, Securities and Exchange
Board of India’s (SEBI) undertaking
of the massive exercise of re-writing
the rules within the timeline is
commendable.
Speaking at a conference
organised by the Confederation
of India Industry, in Mumbai in
December last year, Ajay Tyagi,
the low profile SEBI chairman, had
said that the market regulator had
begun working on tweaking certain
regulations to make them simpler.
Now, six months later, we can
see the results. One of the most
important SEBI regulations - the
Issue of Capital and Disclosure
Regulation (ICDR) - has undergone
a complete overhaul last week.
The SEBI board has approved
the changes recommended by
the Primary Markets Advisory
Committee (PMAC). Once notified,
the new regulation will be known
as ICDR 2018 which will replace
the ICDR 2009. Along with this,
two more regulations - Buyback
of Securities and the other one on
There are more than
60 IPOs lined up in
the remaining part of
calendar year 2018
SEBI Substantial Acquisition and
Takeover Regulations (SAST) - have
also been redrafted.
“This not only shows the
regulator’s commitment but also
displays how swiftly it works,” says
Dipti Neelkantan, Group Chief
Operating Officer, JM Financial
and a primary market veteran
having experience of over three
decades. “This marathon work (of
overhauling ICDR Regulations)
could not have become possible
without SEBI chairman Ajay Tyagi
taking the initiative and guiding
the group formed to undertake the
task. In the process, the regulator
has also taken intermediaries’ views
on board in a timely manner,” she
added.
Srinivasan Ramesh, Chief
Executive Officer and Managing
‘SEBI Needs To Simplify Regulations Across Segments Of The Market’
T
During this period, hundreds of amendments took place, which
he exercise of overhauling the regulations related to the
were not placed appropriately in the regulations. Definitions
primary market began in April 2017. The responsibility
were poor, language was complicated, there
to head the task was given by Prtithvi Haldea,
was a lot of obsolescence and current market
Founder-Chairman, Prime Database and member
practices were not incorporated. The sequencing
of SEBI’s Primary Market Advisory Committee
of the regulations was also not in a logical order,”
(PMAC). Haldea roped in Dipti Neelakantan,
Haldea said. “The new regulations have been
Group COO, JM Financial, Ramesh Srinivasan,
arranged with a separate comprehensive chapter
MD and CEO, Kotak Mahindra Capital Company
for each type of offering. Within each chapter, the
(KMCC) and Sudhir Bassi, Executive Director,
clauses have been arranged in the same flow as an
Khaitan & Co to work on this project. Gesu
issuance follows. Common items have been taken
Kaushal, Executive Director, KMCC, was also
Prtithvi Haldea
to schedules. The language has been simplified.”
invited into the team.
Founder Chairman, Prime
The group completed this gigantic exercise in
“It was DIP (Disclosure and Investor Protection)
Database and member
about five months. It was then realised that there
guidelines earlier. Then it became ICDR 2009.
of SEBI’s Primary Market
Advisory Committee
are many circulars, informal guidance and FAQs
Over the past decade, these became unwieldy.
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Outlook Money July 2018 www.outlookmoney.com