Speed Khabar
Promoters of the company rather than for the purpose stated in the prospectus of the money raised from the public -use elsewhere , so it may have to return money to investors . Standard corporate governance is being done to improve . It is in the interest of investors .
Sebi will soon rule for it . Accordingly , the promoter of the public funds used elsewhere , so that investors do not agree , they must return their money . In such cases, the regulator will decide the exit price .
Earth Prime Database chairman of Haldia said , ” where some companies in the item becomes compulsion to use public funds , most companies do deliberately do . In such cases legally can be hard on them . Indeed , to use public funds elsewhere Majority Shareholder approval is required . ‘
According to current rules , if the company wants to public funds in any other business , it has to be approved by shareholders . According to the new rules , they will have to return money to shareholders who disagrees . Is often unheard voice of small investors . Stake in the company to more easily convince the promoters do their thing . Haldia said , ” dissenting shareholder who should get the chance to exit from the company . The objective of the Fund is changing the company and shareholders do not agree , you should get his money back . ”
Former Member of SEBI MS Sahu Use of funds in terms of the prospectus of the new rules will become final document . “It changes the position of the promoter , he must return the money to shareholders . ” Sahu is now secretary of ICSI . New Rules for SEBI Issue of Capital and Disclosure Requirements Soon ( Aiseediar ) and to changes in the takeover code . In the case of BMR Advisors Partner Vivek Gupta said , ” the SEBI Regulations of the final picture will be clear . ”
In the past two years, the funds raised from the IPO , down from the 2010 peak of 37 535 in 2012 to Rs 6938 crore has been reduced . In the interest of investors in the IPO market weakness diminished. This is because companies are not coming with the new issue . [Source: Times Of India]
