SEBI Approves Escrow format for IPO Applications

The Securities and Exchange Board of India, or Sebi, board has approved the escrow format for IPO or rights applications which means that the retail investors will pay only on allotment.

The board has also given an in-principle nod for alternative payment for public or rights issues. Sebi has allowed lien on investors’ bank accounts for IPO application.

Sebi has also upped the networth norm for portfolio managers to Rs 2 crore. The current norm for networth of portfolio managers stands at Rs 50 lakh. The regulator wants existing portfolio managers to meet its networth norm in one-year. “Portfolio managers cannot pool client funds similar to mutual funds.”