Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today said it is still investigating the issue of SKS Microfinance sacking its CEO Suresh Gurumani - which raised the hackles of investors - shortly after a successful Rs1,600 crore public offer, reports PTI.
"The investigation is still on..," SEBI chief CB Bhave told reporters here.
After raising Rs1,600 crore through an initial public offer (IPO) in August, the Hyderabad-based company on 4th October terminated the services of Mr Gurumani four years ahead of the expiry of contract and named M R Rao as his successor.
Mr Gurumani had a five-year contract starting from 1 April 2009.
A few days later on 14th October SEBI in a communiqué to the company had asked whether the termination of Mr Gurumani was planned when SKS had filed the draft prospectus in March for the IPO.
The company replied to the SEBI questionnaire the following day, but declined to make public the details.
Mr Gurumani was earlier director at consumer banking at Barclays. After his sacking SKS founder Vikram Akula has become the executive chairman.
The matter reached the Andhra Pradesh High Court later which allowed him to continue as a director on board till final orders.
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today doubled the investment limit for retail investors in an initial share sale offer to Rs2 lakh, reports PTI.
The board approved categorising all investors putting in up to Rs2 lakh to buy shares through a public offer as retail investors, SEBI chief CB Bhave told reporters here.
SEBI, in its draft guidelines in August, had proposed to raise the ceiling for retail investors to Rs2 lakh in public issues. Way back in 2005, the limit for retail investors was raised from Rs50,000 to Rs1,00,000 in public issues.
The market watchdog allows price discount for retail investors and company discount participating in initial public offers (IPOs) and follow-on public offers (FPOs).
This discount is offered to attract retail investors into the market.
In another related development, the market regulator has deferred a decision to amend the takeover code as it said that it needs “additional time” to look into the finer aspects of the same.