SEBI relaxes buy-back period
restriction for companies in view of COVID-19 to enable quicker access to
capital. Currently, regulations restrict companies to raise capital for a
period of one year from the expiry of buy-back period. This has been reduced to
6 months.
SEBI- Measures to further facilitate fund raising from capital markets in the backdrop of COVID-19 pandemic
In the wake of challenges for the Indian economy arising out of the Covid-19 pandemic and with a view to improving access to funding to the corporates through capital markets, SEBI has decided to grant certain temporary relaxations from the regulatory provisions related to rights/ public issuances by listed entities. Rights Issues 1. Fast track Rights issuances Towards expanding the universe of listed entities for the purpose of fast track rights issuances, SEBI has relaxed the following conditions: The eligibility requirement of average market capitalisation of public shareholding of INR 250 crores has been reduced to INR 100 crores. The requirement related to period of listing of equity shares of the issuer for at least three years has been reduced to listing for eighteen months only. The condition related to no audit qualifications on issuer’s audited accounts has been replaced with the requirement to disclose the impact of audit qualifications on issuer
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