Rules And Regulations Related To FPO Presentation

Introduction to FPO Rules and Regulations
FPO stands for Follow-on Public Offer. FPO is a way for companies to raise additional capital from the public after their initial public offering (IPO). FPOs are governed by strict rules and regulations to protect the interests of investors.	Image Source
		1

Regulatory Authorities
FPOs are regulated by the Securities and Exchange Board of India (SEBI). SEBI is responsible for ensuring compliance with rules and regulations related to FPOs. SEBI plays a vital role in maintaining transparency, fairness, and investor protection in the FPO process.	Image Source
		2

Eligibility Criteria for FPO
A company must be listed on a recognized stock exchange to be eligible for an FPO. The company must have a minimum track record of three years and meet the profitability criteria set by SEBI. The company must comply with the minimum public shareholding requirements before undertaking an FPO.	Image Source
		3

Pricing of FPO
The pricing of FPO is determined through a book-building process. The company sets an indicative price range, and investors bid within this range. The final price is determined based on the demand and supply of shares during the book-building period.	Image Source
		4

Disclosures and Prospectus
Companies planning an FPO must provide detailed financial information, business prospects, and risk factors in the prospectus. The prospectus must be filed with SEBI for approval before it can be circulated to investors. The prospectus is an essential document that helps investors make informed decisions.	Image Source
		5

Timelines and Process
The FPO process typically takes around 3-4 months from the filing of the prospectus to the listing of shares. During this time, the company holds roadshows, interacts with investors, and finalizes the pricing and size of the FPO. SEBI closely monitors the entire process to ensure compliance and investor protection.	Image Source
		6

Allocation of Shares
The allocation of shares in an FPO is based on various factors, including investor category, bid price, and availability of shares. SEBI guidelines require a minimum allotment to retail investors, non-institutional investors, and qualified institutional buyers. The allocation process aims to ensure fair distribution of shares among different investor groups.	Image Source
		7

Trading and Listing
After the FPO is successfully completed, the company's shares are listed on the stock exchange. The shares can be freely traded by investors, providing liquidity to shareholders. The company must comply with post-listing obligations and disclosure requirements as per SEBI regulations.	Image Source
		8

Investor Protection Measures
SEBI has implemented various measures to protect the interests of investors in FPOs. These measures include strict disclosure requirements, eligibility criteria for issuers, and monitoring the conduct of market intermediaries. SEBI also investigates any violations or irregularities related to FPOs and takes appropriate action.	Image Source
		9

Conclusion
FPOs are an important tool for companies to raise additional capital from the public. Strict rules and regulations ensure transparency, fairness, and investor protection in the FPO process. SEBI plays a crucial role in regulating FPOs and maintaining the integrity of the capital market.	Image Source
		10