SEBI guideline on capital issues

New companies as well as existing companies raise capital by issue of shares in the primary marked. Every day there will be two to three issues to which public and other like mutual funds, foreign institutional investors etc. subscribe. Prior to the abolition of Capital Issues (Control Act, 1947 on the 29th may 1992, no company could issue capital above Rs. 10 million to the public without obtaining the permission of the Controller of Capital issues (CCI), an office set up under the Act. Also where shares have to be issued above par, the share premium must be determined with his consent and in accordance with the regulations under the Act. With the abolition of the Capital issues (Control) Act 1947, securities Exchange Board of India (SEBI) is regulation the public issues. One of the objectives of setting up this Board is "to provide a degree of protection to the investors and safeguard their rights and interests so that there is a steady flow of savings into the market".