SEBI issues new rules governing changes in issue size

The Securities and Exchange Board of India (SEBI) has come out with new norms that entail filing of fresh offer documents in those cases where there has been a change in the issue size by more than 20 per cent. In case of an offer for sale where there is an over 50 per cent change in the estimated issue size, a fresh offer document will be needed. In case an issue is made other than through the book building process, a minimum of 50 per cent will be allocated to retail investors. The remaining will be allocated to individual applicants (other than retail investors) as well as other investors including corporate bodies or institutions, irrespective of the number of specified securities applied for. To give effect to these norms, SEBI has amended its capital and disclosure requirement regulations.