SEBI relaxes norms for promoters of IPO-bound firms; lock-in period reduced to 18 months - MMJC

At a time when many companies are looking to list on the stock exchanges through an initial public offer (IPO), the Securities and Exchange Board of India (SEBI) has relaxed the norms related to the lock-in of shares held by promoters of such companies.

“The change in regulatory framework for the promoter and promoter group is a boost to the start-up fraternity and their investors,” said Makarand Joshi, founding partner, MMJC and Associates LLP, a corporate compliance advisory firm. “Going forward, more changes should follow including simpler due diligence process for such companies. This well-timed initiative augurs well for over 50 unicorns in India and can constitute 10-20 per cent market capital of the whole industry,” he added.

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