SEBI tightens promoter norms - The Economic Times: "The capital markets regulator, Securities and Exchange Board of India (SEBI) has made some significant changes in the capital market regulations. It has tightened the framework for preferential allotment of shares to promoters' groups to prevent misuse of preferential allotments, warrants, and convertibles to manipulate share prices.
If a promoter or a promoter group fails to exercise warrants they have previously subscribed to, equity shares, convertibles or warrants cannot be issued for one year from the date of expiry of the currency or cancellation of the warrants. The promoter and the promoter group are also ineligible for preferential allotment if it has sold shares in the previous six months. This has been a long-standing demand from investor protection groups."
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