Sebi Board may finalise detailed e-IPO norms this month

To give a fillip to fund raising from capital markets, Sebi is likely to come out this month with a detailed guidelines on electronic Initial Public Offers (e-IPOs), where investors can bid for shares through internet.

The final norms, which would be presented for approval from the Sebi's board later this month, have been finalised after taking into account suggestions from all stakeholders to the draft guidelines released in January, sources said.

The introduction of e-IPO would help eliminate the printing of application forms, help in reducing the overall cost of public issuance and support companies in reaching more retail investors in small towns.

Initially, investors would be able to place bids through internet and by using broker terminals across the country as against the current practice of filing long documents.

The Securities and Exchange Board of India (Sebi) may drastically cut the timeline for listing of shares within two-three days of the IPO as against 12 days at present.

Sebi Chairman U K Sinha last weekend said that the regulator would soon start electronic IPO, which would make it easier for investors to put their money in the initial public offers.

"So like the secondary market, investors from all over the country can benefit from the secondary market network that is our next step and we are going to implement that very soon," he said.

The markets regulator, in its last board meeting had said that extensive and integrated use of technology can facilitate and further ease the investing process in the securities market.

A framework for the use of mobile applications for making bids in public issues may be presented at the board meeting.

Under the new norms, investors may also get SMS/e-mail alert for allotment under the IPO, similar to alerts being sent to investors for secondary market transactions.