SEBI Board meeting held on December 4, 2008

IPO and Rights Issues

(a) SEBI issues an "observation letter" for all offer
documents submitted by Cos proposing to hit Capital Market.
Earlier, the validity of the letter was 3 mths. In view
of the current market situtation SEBI has extended this validity to 1 YEAR.

(b) Entitlements in a Rights issue will now be made in
electronic mode (i.e. by way of a credit in the demat
accout) and these can be traded on exchanges. Further
the facility of ASBA (blocking of funds in the account of
the applicant till the allotment is finalised) has also
been extended to Rights issues

Mutual Funds - Following was decided

(a) No early exit will be allowed in any Close Ended
Scheme.
(b) Close ended schemes to be listed on Exchanges (to
provide exit route to investors)
(c) Maturity of the underlying assets not to go beyond
the date the scheme expires.
(d) Schemes approved earlier but not launched to be
amended accordingly


Other decisions

(a) SEBI to have a code to avoid conflict of interest
for the members of the Board
(b) Agenda and Minutes of SEBI Board meetings to be made
public (thru website)