SEBI reduces lock-in period of pre-IPO securities held by persons other than promoters

Mumbai:  Securities and Exchange Board of India (SEBI) on August 6 relaxed the norms for lock-in period of pre-initial public offering (IPO) securities. The time period of such lock-in securities held by persons other than promoters will be for six months, it said.

The current lock-in period for pre-IPO securities by persons other than promoters was one year.

The changes shall be subject to below conditions: if the object of the issue involves only offer for sale, and if the object of the issue involves fundraising for other than the capital expenditure for a project, the regulatory body said.

In case of combined offering (fresh Issue + offer for sale), the object of the issue involves financing for other than capital expenditure for a project, it added.