Wednesday, October 21, 2020
News

SEBI rationalises norms to speed up rights issues

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai | Thursday, 2020 4:45:05 AM IST
In a bid to make fundraising through rights issues faster and cost effective, the Securities and Exchange Board of India (SEBI) on Wednesday rationalised norms and the eligibility criteria and regulations for such issues.

Post the amendments, the issuer shall be eligible to make truncated disclosures in terms of "where it has been filing periodic reports/statements/information in compliance with Listing Regulations as applicable" for the last one year, instead of the last three years as required earlier and also regarding "where three years have passed after change in management pursuant to acquisition of control or Listing consequent to a scheme of arrangement".

"SEBI has decided to amend SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 to rationalise eligibility criteria and disclosure requirements for Rights Issues' with an objective to make the fund raising through this route easier, faster and cost-effective," a SEBI statement said.

The SEBI has also increased the threshold, from Rs 10 crore to Rs 50 crore, for filing requirement of rights issue draft letter of offer with the Board for its observations.

In another relief, the regulator has decided that "mandatory 90 per cent minimum subscription criteria for rights issue shall not be applicable to those issuers where object of the issue involves financing other than financing of capital expenditure for a project, provided that the promoters and promoter group of the issuer undertake to subscribe fully to their portion of rights entitlement".

The issuer shall be eligible to make Fast Track Rights Issue, in case of pending show-cause notices in respect to adjudication, prosecution proceedings and audit qualification, provided that necessary disclosures along with potential adverse impact on the issuer are made in the letter of offer, the SEBI said.

--IANS rrb/sn/vd

( 298 Words)

2020-09-23-22:43:08 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Healthy Q2 results, lower infection rate...
Jet may fly again in four months after n...
India's April-August FDI inflow rises 13...
HUL's Q2 consolidated net profit logs gr...
HYSEA Innovation Summit to be held on No...
NHSCRL invites tender for preparing DPR ...
More...
 
INDIA WORLD ASIA
Punjab CM corners Akalis, AAP for 'doubl...
Delhi govt suspends bar license of Delhi...
Air India bids deadline likely to be ext...
SP's Ram Gopal Yadav files nomination fo...
'If I were PM for one day, I would ban b...
Odisha govt suspends officer over stone ...
More...    
 
 Top Stories
Amazon wants to pay consumers for d... 
'Fast And Furious' franchise to wra... 
Aashi Hanspal named impressive new ... 
Sonet gets 50,000 bookings, says Ki... 
Struggling Chennai Super Kings faci... 
Right nutrition increases physical,... 
Biden holds cash advantage against ... 
Calcutta HC softens stand, allows m...