Sunday, March 7, 2010

QIBs to pay full amount upfront in IPO/FPO/Right Issues

The Securities and Exchange Board of India (Sebi) announced today that Qualified Institutional Buyers (QIBs) will now have to pay 100 per cent margin at the time of application for all initial public offers, follow-on offers and rights issues.

The new rule will be applicable for all the issues that open on or after May 1, 2010. At present QIB pays only 10% margin while applying for public issue.