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June 19, 2020 3:28 pm

INDIA’S SECURITIES REGULATOR HAS ANNOUNCED MEASURES TO EASE CAPITAL RAISING BY LISTED COMPANIES

India’s securities regulator has announced some measures to ease capital raising by listed companies.

The creeping acquisition limit has been increased to 10% voting rights for promoters acquiring equity shares through a preferential issue until March 31, 2021. Such acquisitions will not trigger an open offer. This change will incentivise promoters to buy equity at cheaper valuations given the current market conditions and also work as a viable capital raising route for companies.

Additionally, the mandatory time gap between QIPs has been reduced to 2 weeks in a bid to fasten capital raising.

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