SEBI's consultation paper advocates for rights issues as preferred fundraising method
Mumbai: Capital market regulator SEBI has released a consultation paper aimed at speeding up the rights issue process.
The paper invites feedback from stakeholders on proposed recommendations to make rights issues a preferred option for fundraising, according to a circular issued by SEBI on August 20.
The paper suggests introducing flexibility in allotting shares to selective investors participating in the rights issue.
In FY24, rights issues raised the least amount of funds, totaling Rs 15,110 crore, compared to Rs 68,972 crore through Qualified Institutional Placements (QIP) and Rs 45,155 crore via preferential share allotments, according to SEBI data.
Additionally, the number of rights issues was significantly lower than preferential issues.
To increase the share of rights issues in overall fundraising, SEBI conducted consultations with stakeholders in July and proposed several measures, including:
Eliminating the requirement to file a Draft Letter of Offer (DLoF) with SEBI
Streamlining the content of the Letter of Offer (LoF) by limiting disclosures to essential information, such as the purpose of the issue, pricing, record date, and entitlement ratio
Reevaluating the role of intermediaries involved in the process
Reducing the timelines associated with the rights issue process
Allowing the possibility of allotment to selective investors in rights issues
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
US: Michigan church attack leaves four dead, gunman shot down
Narendra Modi congratulates Team India on Asia Cup win over Pakistan, recalls Operation Sindoor
India celebrate Asia Cup win without trophy after stand-off with Pakistani Minister Mohsin Naqvi
Tamil Nadu: Vijay’s party blames DMK ‘conspiracy’ for Karur stampede, seeks probe by SIT or CBI
