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With reference to the follow-on public offers (FPOs), consider the following statements:
1. The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been done away with by SEBI.
2. Earlier, promoters were mandated to contribute 20% towards a FPO.
Which of the statements given above is/are correct?  
  • a)
    1 only        
  • b)
    2 only        
  • c)
    Both 1 and 2        
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
With reference to the follow-on public offers (FPOs), consider the fol...
Capital markets watchdog SEBI relaxed the framework for follow-on public offers (FPOs), which will help promoters of companies raise funds more easily through this route.
  • The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been done away with by the regulator, as per a notification.
  • Earlier, promoters were mandated to contribute 20% towards a FPO.
  • Besides, in case of any issue of capital to the public, the minimum promoters’ contribution was required to be locked-in for three years.
  • SEBI said the relaxation would be available for those companies which are frequently traded on a stock exchange for at least three years. Also, such firms should have redressed 95% of investor complaints.
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With reference to the follow-on public offers (FPOs), consider the following statements:1. The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been done away with by SEBI.2. Earlier, promoters were mandated to contribute 20% towards a FPO.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the follow-on public offers (FPOs), consider the following statements:1. The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been done away with by SEBI.2. Earlier, promoters were mandated to contribute 20% towards a FPO.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the follow-on public offers (FPOs), consider the following statements:1. The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been done away with by SEBI.2. Earlier, promoters were mandated to contribute 20% towards a FPO.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the follow-on public offers (FPOs), consider the following statements:1. The applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO have been done away with by SEBI.2. Earlier, promoters were mandated to contribute 20% towards a FPO.Which of the statements given above is/are correct? a)1 only b)2 only c)Both 1 and 2 d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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