Securities and Exchange Commission of Srilanka announce to Colombo Stock Exchange the following procedures to allot Initial Public Offering shares,
- A Minimum of 40% of the offered shares of a particular IPO should be allotted to the Retail Individual Investors ( Retail individual investor)
The retail Individual Investor shall mean an Individual investor who subscribe for a maximum of 3,000 shares or value of not more than Rs.100,000 in a particular share class, whichever is higher.
- A Minimum of 40% of the offered shares of a particular IPO should allot to the Unit Trusts operated by managing companies Licenced by the SEC.
If Under subscription
- If the Unit Trust investor category is under subscribe, the Retail Individual Investor Category shell be given first priority in the allotment of the under subscribed.
- If the Retail Individual Investor Category is under subscribe, the Unit Trust investor category shell be given first priority in the allotment of the under subscribed.
The above Directive shall be effective from the 15th March 2011.