Theranautilus Secures $1.2 Mn in Seed...
19 Nov 2024
Previously, SEBI had advised merchant bankers that PE investors must cancel their special rights when the investee company files its updated IPO document with SEBI.
Securities lawyers had noted that this requirement could expose PE investors to risks if the IPOs did not materialize.
However, SEBI has now relaxed this rule, allowing special rights to remain in place until the date of listing.
This change ensures that PE investors can retain their special rights until the company is officially listed, providing greater security.
Manshoor Nazki, a partner at IndusLaw, commented, "SEBI has now allowed special rights till listing, as opposed to filing the updated draft red herring prospectus (UDRHP).
This reversal of position will benefit investors as they'll maintain their special rights right up till listing.
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