SEBI on September 30, 2022 vide a press release had informed of the proposals approved by the SEBI Board during its board meeting. Amongst several approved proposals also included the proposal in relation to additional disclosures and mechanism to calculate price per share for issuers coming out with an IPO. (One may read more about the same and other approved proposals in a previous update shared by Regstreet Law Advisors at: https://lnkd.in/dAGyEUNp)
In this background, Mr. Sumit Agrawal, Partner, Regstreet Law Advisors has been quoted with a view that โusually for not undertaking due diligence or canvassing in the offer document, SEBI holds up merchant bankers, along with executive directors of the company. A legislative approach expecting independent directors to give their assessment on quantitative factors or KPIs vis-ร -vis the WACA of primary issuance would bring new civil and criminal liabilities on non-executive directors who include independent directors. Interestingly, qualification for being an independent director itself does not require such an ability to assess issue price bandsโ
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