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The Securities and Exchange Board of India (SEBI) has announced a series of measures to boost investor confidence in the primary market and mutual funds. Among other changes, SEBI has now approved the concept of 'anchor investors', which is widely used around the world. An anchor investor is an investor which subscribes to up to 30% of the quota for institutional investors in an initial public offering.
The Securities and Exchange Board of India has made it mandatory for company promoters to reveal details of shares they have pledged in their listed entities. Promoters must provide details of the pledge of shares and the release or sale of pledged shares to the company, and the company will report the same to the public through the stock exchanges.
Following the Satyam scandal, the Securities and Exchange Board of India has initiated a brainstorming session to assess the role of top company personnel (eg, promoters and independent directors) and to address problematic grey areas in various pieces of legislation (eg, the insider trading regulations).