Exploring possibilities of easing norms for institutional placement
The Securities and Exchange Board of India is set to come
out with a multi-pronged strategy to enhance the reach of the mutual fund
industry. The board has set up a panel for the purpose. “The exercise has just
begun,” said Mr U.K. Sinha, SEBI Chairman, on Monday.
He said that SEBI is concerned at the reach of mutual funds
is not up to its (SEBI's) expectations or the potential of the market.
In 2010-11, the net inflow in to the equity schemes of
mutual funds was down by about Rs 13,500 crore. But, in the following year, it
turned positive with a net flow of around Rs 700 crore. “This is an encouraging
development. But, the number of folios in the mutual fund industry has gone
down in 2011-12,” he said.
Besides, it is also seriously exploring possibilities of
easing procedural requirements for institutional placement of shares and offer
for sale. Mr Sinha said, the idea is to encourage companies to comply with
SEBI's recommendation on minimum public holding.
He pointed out that there are still 181 companies in the
country which are not compliant of minimum public holding norm — 25 per cent in
the case of private companies and 10 per cent in the case of PSUs. So far, only
three issues have come out, of which two were institutional placements and the
third, an offer for sale, he said.
On the investor complaints, Mr Sinha said, since June last
year, when SEBI launched computerised complaints registering system, there were
35,000 complaints registered. More than two-third of this has been resolved
within 30 days. The rest of them too will be sorted out very soon, he said.
According to him, more than 50 per cent of the complaints
are against companies. Most of them are about not receiving dividends or annual
reports.
Source: http://www.thehindubusinessline.com/markets/stock-markets/article3394483.ece
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