Mumbai : In a significant move to safeguard minority investors, capital markets regulator Sebi proposed making it mandatory for listed companies to provide an exit option to dissenting shareholders in case of changes to the objectives for which they had raised money from public.
The move would help the shareholders make an exit if they feel dissatisfied with any change in business plan of the concerned company after raising funds through IPOs, FPOs or any other capital-raising exercise involving public investors.
SEBI plans to create a suitable framework to protect interests of the investors in case companies change business objectives from the ones mentioned in their memorandum of association.