PREFERENTIAL ALLOTMENT PRICING NORMS

June 27, 2020

The Securities and Exchange Board of India (SEBI) has relaxed the preferential allotment pricing norms for companies while tightening the insider trading regulations as part of its attempts to minimise instances of unpublished, price-sensitive information getting leaked.

Preferential Allotment Pricing Norms

It also amended the settlement proceeding norms to enable a faster disposal of cases while tweaking the Takeover Regulations as well.
Companies with frequently traded shares can take into account the average of the weekly high and low over the past 12 weeks or two weeks, whichever is higher, and price the preferential allotment above that mark.
While the existing pricing mechanism will continue, the relaxed pricing option will be available for all preferential allotments made between July 1 and December 31, 2020.

Source : The Hindu