Sebi overhauls preferential allotment rules

Capital markets regulator Sebi has relaxed pricing norms and lock-in requirements to make it easier for companies to raise funds through preferential allotment of shares.

Also, the regulator has allowed pledging of shares allotted to promoter or promoter group under preferential issue during the lock-in period, according to a notification. In addition, Sebi has said any preferential issue resulting in a change in control or allotment of more than a 5 percent stake will require a valuation report from a registered valuer.