{"id":6330,"date":"2020-05-21T23:25:16","date_gmt":"2020-05-21T17:55:16","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=6330"},"modified":"2021-10-19T15:00:21","modified_gmt":"2021-10-19T09:30:21","slug":"summaries-of-sebi-relax-encouraged-provisional-relief-for-rights-issue","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/summaries-of-sebi-relax-encouraged-provisional-relief-for-rights-issue\/","title":{"rendered":"SEBI relax &#038; encouraged provisional relief for rights issue"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e8a9207ef54\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e8a9207ef54\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/summaries-of-sebi-relax-encouraged-provisional-relief-for-rights-issue\/#SEBI_relaxed_and_welcomed_short_track_rights_issues_generating_capital_on_the_stock_market_until_31_March_2021\" title=\"SEBI relaxed and welcomed short track rights issues generating capital on the stock market until 31 March 2021.\">SEBI relaxed and welcomed short track rights issues generating capital on the stock market until 31 March 2021.<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/summaries-of-sebi-relax-encouraged-provisional-relief-for-rights-issue\/#Right_Issues-_Fast_Track_Rights_issuances\" title=\"Right Issues-\u00a0Fast Track Rights issuances\">Right Issues-\u00a0Fast Track Rights issuances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/summaries-of-sebi-relax-encouraged-provisional-relief-for-rights-issue\/#Minimum_Subscription_for_right_issue\" title=\"Minimum Subscription for right issue\u00a0\">Minimum Subscription for right issue\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/summaries-of-sebi-relax-encouraged-provisional-relief-for-rights-issue\/#Threshold_for_failing_to_apply_a_request_for_a_letter_of_a_bid_to_SEBI\" title=\"Threshold for failing to apply a request for a letter of a bid to SEBI\">Threshold for failing to apply a request for a letter of a bid to SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/summaries-of-sebi-relax-encouraged-provisional-relief-for-rights-issue\/#Flexibility_on_Issue_size\" title=\"Flexibility on Issue size\">Flexibility on Issue size<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"SEBI_relaxed_and_welcomed_short_track_rights_issues_generating_capital_on_the_stock_market_until_31_March_2021\"><\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" href=\"https:\/\/carajput.com\/sebi-consulting.php\">SEBI<\/a> relaxed and welcomed short track rights issues generating capital on the stock market until 31 March 2021.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Steps to further promote the collection of funds from capital markets in the light of the COVID-19 disease outbreak<\/li>\n<li>In the face of the threats to the Indian economy emerging from the Covid-19 pandemic and with a view to enhancing access to corporate <a href=\"https:\/\/carajput.com\/blog\/tips-how-to-handle-financing\/\">finance t<\/a>hrough capital markets,<\/li>\n<li><a href=\"https:\/\/carajput.com\/sebi-consulting.php\">SEBI<\/a> has agreed to offer some temporary relief from regulatory obligations related to rights \/ public concerns to listed entities.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Right_Issues-_Fast_Track_Rights_issuances\"><\/span><span style=\"color: #000080;\"><strong>Right Issues-\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>Fast Track Rights issuances<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>SEBI has relaxed the following requirements in order to broaden the scope of mentioned organizations for the benefit of fast track rights issues:<\/p>\n<p style=\"padding-left: 40px;\">1)\u00a0 Qualification requirement for the total market capitalization of the public shareholding of INR 250 crores has been lowered to INR 100 crores.<\/p>\n<p style=\"padding-left: 40px;\">(2)\u00a0 Requirement relating to the period of listing of the shares of the issuer for at least three years has been reduced to a listing of only eighteen months.<\/p>\n<p style=\"padding-left: 40px;\">3)\u00a0 The provision relating to no audit credentials in the audited reports of the issuer has been replaced by the obligation to report the effect of the audit credentials on the financial statements of the issuer.<\/p>\n<p style=\"padding-left: 40px;\">4)\u00a0 Some other requirements of registration with respect to the time of compliance with the terms of the listing regulations,<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>the pending proceedings were taken by <a href=\"https:\/\/carajput.com\/sebi-consulting.php\">SEBI<\/a> against the issuer\/promoter\/director, and the enforcement of the violation of the securities laws have now been relaxed.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Minimum_Subscription_for_right_issue\"><\/span><span style=\"color: #000080;\">Minimum Subscription for right issue\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>For order to have more consistency for collecting funds, the threshold for minimum subscription thresholds for rights issues has been reduced from the current 90 % to 75 % of the bid value, subject to some limitations.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Threshold_for_failing_to_apply_a_request_for_a_letter_of_a_bid_to_SEBI\"><\/span><span style=\"color: #000080;\">Threshold for failing to apply a request for a letter of a bid to <a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/sebi-consulting.php\">SEBI<\/a><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>In order to minimize the time involved in raising funds and to simplify compliance requirements, identified organizations collecting funds up to INR 25 crores in rights issues would not be required to request a draft bid paper.<\/li>\n<li>The official requirement for this is INR 10 crores. Such relaxations shall extend to the correct problems which are accessed on or before 31 March 2021.<\/li>\n<li>It can be recalled that <a href=\"https:\/\/carajput.com\/sebi-consulting.php\">SEBI<\/a> revised the ICDR Regulations last year in order to substantially shorten the timeline for the resolution of the T+ 55-day rights question to T+ 31 days and to implement the dematerialization and exchange of rights entitlements.<\/li>\n<li>Such steps will make the system for rights more functional and successful.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Flexibility_on_Issue_size\"><\/span><span style=\"color: #000080;\">Flexibility on Issue size<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>An issuer whose offer document is awaiting receipt of <a href=\"https:\/\/www.caindelhiindia.com\/blog\/sebi-investment-advisors-amendment-regulations-2020\/\">SEBI<\/a> observations may increase or decrease the size of the fresh issue by up to 50% of the expected issue size (instead of the existing limit of 20 % ) without allowing the Board to send a fresh draft offer document.<\/li>\n<li>Relaxation shall extend to all tender contracts awaiting receipt of SEBI findings by 31 December 2020.<\/li>\n<li><span style=\"color: #000080;\">Validity of the findings of <a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/sebi-consulting.php\">SEBI<\/a><\/span><\/li>\n<li>Having respect to the current economic scenario and on the basis of demands from different industrial bodies,<\/li>\n<li>It has been agreed that SEBI &#8216;s observations on all public issues \/ rights issues will be extended by six months from the date of expiry for issuers whose observations have expired \/ expired between 1 March 2020 and 30 September 2020.<\/li>\n<li>To sum up, these steps are aimed at widening the number of listed organisations that are entitled to collect funds by fast track privileges, minimizing the time required and ensuring more flexibility in raising funds rather than relaxing regulatory conditions.<\/li>\n<\/ul>\n<p>Circulars released by <a href=\"https:\/\/carajput.com\/sebi-consulting.php\">SEBI<\/a> in respect of the measure referred to above are accessible on the SEBI website at <span style=\"color: #0000ff;\">http:\/www.sebi.gov.in<\/span> under the category-&#8216;Legal-Circulars&#8217;. Mumbai 21 April 2020<\/p>\n<p>Popular Articles :<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/learn\/sebi-introduces-onetime-settlement-scheme-sebi-settlement-scheme-2020.html\">SEBI introduces onetime settlement scheme SEBI settlement scheme-2020<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/sebi-guidelines-dvat-provisions-cbecs-move-towards-gst\/\">SEBI guidelines for DVAT Provision<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/sebi-extends-time-line-for-june-quarter-results-to-15-sept-2020\/\">SEBI extended timelines for june quarter<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/security-exchange-board-in-india-consultancy-service.html\">Service regarding SEBI<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>SEBI relaxed and welcomed short track rights issues generating capital on the stock market until 31 March 2021. Steps to further promote the collection of funds from capital markets in the light of the COVID-19 disease outbreak In the face of the threats to the Indian economy emerging from the Covid-19 pandemic and with a &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[8917,8919,8920,8908,8914],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/6330"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=6330"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/6330\/revisions"}],"predecessor-version":[{"id":6490,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/6330\/revisions\/6490"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=6330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=6330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=6330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}