SEBI Board meeting held on February 2, 2009

SEBI vide a press release PR No. 73/2009 dated February 2, 2009 has published the decisions taken by the SEBI Board in its meeting. The highlights are as follows: -

1. It has been decided that listed companies should declare dividend on per share basis only. Related amendments will be made in the listing agreement. This aims at bringing uniformity in declaration of dividend.
2. Timelines for bonus issues have been reduced to 15 days where no shareholders’ approval is required as per articles of association and to 60 days where shareholders’ approval is required as per Articles of Association. DIP guidelines will be amended accordingly.
3. Time frame for announcing the price band for Initial Public Offering (IPO) have been shortened and now issuer company can declare the floor price/ price band at least two working days before the date of opening of IPO (earlier this was two weeks). This would help companies in the present volatile market conditions.
4. The upfront margin to be paid by allottees of equity warrants has been raised to 25% from the present 10%.
5. It was decided that appropriate amendments will be made in the regulations / guidelines to enable a transparent process for arriving at the price for the acquisition of Satyam Computers Services Limited.
6. Board also approved regulations for governance of Investor Protection and Education Fund (IPEF). This includes the details relating to the sources or contributions to the fund and the approved end uses of the fund.