Question : SEBI has recently(December 2021) made several important changes in the rules related to the use of the money raised from the IPO. Which of the following is one of them ?
a. Acquisitions will have to be disclosed
b. Acquisitions will not have to be disclosed
c. Reserves will not be monitored for GCPs
d. None of the above
Ans. a.
Related facts —
- SEBI has recently(December 2021) made several important changes in the rules related to the use of the money raised from the IPO.
- Which are aimed to tightened these rules.
- Under this, companies bringing IPO will have to disclose the acquisitions made through the money being raised from the market.
- SEBI has set a limit to use the proceeds from the IPO for any future acquisition ‘target’.
- In addition, the reserves for the GCPs will also be monitored.
- Here GCPs stands for — General Corporate Purposes.
By – Pankaj Pandey