There is a news of relief for companies bringing public issue. Market regulator SEBI has given a big relief to companies bringing IPO or rights issue. SEBI has said in its latest circular that companies do not need to deposit 1% amount in the exchange before bringing the issue.

Big announcement in the circular- SEBI said that the rule of depositing 1% amount has been removed to ease the business. This decision has come into effect with immediate effect. In fact, in February, SEBI had issued a consultation paper in this regard. SEBI

had said that an amount equal to 1% of the issue size was deposited so that investors' refund, allotment of securities and sending of certificates could be ensured. But during the last few years, SEBI has made the rules related to IPO and other public issues quite easy. (Zinka Logistics IPO: Shares to be listed on NSE - BSE, their assets will increase 5 times) After rules like ASBA, payment by UPI, demat account being necessary, the complaints have ended. Now there is no need to send physical certificates. This is the reason that now there is no justification for depositing even 1% amount. Rules for SME IPO will also be strict - SEBI has issued a consultation paper regarding SME IPO. Under this, the listing framework of small and medium companies has been reviewed. SEBI has proposed to increase the minimum limit of subscription for the issue in the paper. Apart from this, it has also been proposed to fix the limit of offer for sale. In view of the increasing participation of investors in SME IPO, very high subscription and high returns, SEBI had already indicated to tighten the rules of the framework. It has been proposed in the consultation paper that the minimum size of application in SME IPO should be increased from Rs 1 lakh to Rs 2 lakh.