IPO's of companies with paid capital of Rs 25 crore to bypass SEBI

From September onwards Initial Public Offers (IPOs) of companies with paid-up capital of upto Rs 25 crore will not require market regulator SEBI's nod to raise capital.

"The companies with either market cap or paid up capital upto Rs 25 crore will only require exchange's approval for listing.

Such companies will not be required to take approval of the Securities and Exchange Board of India (SEBI)to make the public offer and getting listed, BSE head of product strategy Sayee Srinivasan told reporters yesterday on the sidelines of roadshow of the exchange.

In reply to another query, he said by September BSE is expected to be ready with the launch of exchange facility to cater to small and medium enterprises. NSE has also received in-principal approval for similar SME exchange.

However, to participate in trading the minimum trading lot would be Rs 1 lakh.

Keeping in mind the interest of small investors who do not have much access to small private companies, it was decided to keep the minimum trading lot of Rs 1 lakh, irrespective of share value, Srinivasan said.