Page 320 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 14: Securities and Exchange Board of India

(f) Guidelines for lead managers for inter se allocation of responsibilities, which require that Notes
wherever the more than one lead manager to the issue inter se allocation of the pre-issue
and post-issue activities/sub-act will be properly made and information in this regard sent
to SEBI.
Regarding number of lead managers in an issue, SEBI has prescribed that for a total issue
aggregation of more than ` 50 crores, the number of lead managers will not exceed two; for
a total issue of ` 50 crores and above less than ` 100 crores the number of lead managers
may go up to maximum of three and for issues agree ` 100 crores and above but less than
` 200 crores the number may go up to a maximum of five. For aggregating above

` 400 crores, the number of lead managers in excess of fi ve will be prescribed by SEBI to
merits of each case.
(g) Guidelines regarding purchase of non-convertible part of debentures (khokas) from the
subscribers.
(h) Regulation for registrars and share transfer agents.

(i) Regulation on insider trading.
(j) Guidelines for mutual funds and asset management companies.
(k) Draft regulation for substantial acquisition of shares in listed companies.
(l) Consultative paper on free market pricing of capital issue.

(m) Guidelines on capital issues/Guidelines for Disclosure and Investor Protection along with

clarification as on March 1993.
(n) Guidelines on issue of securities by Development Financial Institutions.

(o) Formation of two advisory committees; one on the primary market and the other on
the secondary market, consisting of company members from profession, academic and
investing public.

Note Business India (March 1-14, 2006) noted what SEBI has done so far what it still
needs to do as follows:
WHAT IT HAS DONE SO FAR WHAT IT STILL NEEDS TO DO
Registration of brokers Appointment of nominees on exchange base
Inspection of stock exchange Code of conduct for merchant bank
Investor protection rules Penalising erring companies
Protection for debenture holders Bringing UTI under mutual fund rules
Stopping misuse of Promoter’s quota Rules for new instruments
Better disclosure norms Corporate membership in stock exchanges
RO status for merchant bankers Postal ballot for company AGM’s
Free pricing for public issues Code for takeovers
Insider trading norms Norms for custodial, depository services
Capital adequacy norms for brokers Comprehensive legislation
Curbs on kerb trading Penal powers over companies
Fighter controls over mutual funds Uniform accounting standards
Comprehensive norms for underwriters Capital market development fund
Contd...

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