Sebi makes it simpler for promoters to dilute stake; announces new share auction mechanism

• Sebi, has made it easier for promoters of listed companies to dilute their stake and comply with public holding rules by next year.
• Private sector companies as well as state-owned corporations must have a minimum public holding of 25% by August 2013. Till now, this could have been achieved through follow-on public offerings and institutional placement of stocks.
• A simpler share auction mechanism that would help listed companies to attract investors.
• The regulator also said it would set up a committee to scrutinise the qualified audit reports of listed companies and cases where accounting irregularities were pointed out by the Financial Reporting Review Board of the Institute of Chartered Accountants of India (ICAI).
• Also It would be mandatory for top 500 listed companies to provide electronic voting, or e-voting, facility for shareholders to participate in key business resolutions.
  E-voting will enable greater participation from public shareholders and more importantly create an audit trail of the voting participation.