INSUBCONTINENT EXCLUSIVE:
faster access to capital markets amid the ongoing coronavirus pandemic which has greatly reduced deal activity.
To allow more companies
avail fast-track rights issuances, the Securities and Exchange Board of India (SEBI) reduced the required average market capitalisation of
public shareholding required to 1 billion rupees from 2.5 billion rupees and minimum period of listing to 18 months from 3 years.
Among
other relaxations, SEBI also lowered the minimum subscription required for a rights issue to 75 per cent of the offer size from 90 per cent,
subject to certain conditions.
The reduction will also make it easier for promoters of a company to increase their stake as stock prices
have corrected significantly due to coronavirus, said Shriram Subramanian, founder of proxy advisory firm InGovern
31, 2020 would be allowed to increase or decrease the issue size by up to 50 per cent, without having to submit a fresh draft offer
document.
SEBI also extended the validity of its approval for a public or rights issue by six months for offers which expire between March