{"id":228814,"date":"2020-04-28T13:29:24","date_gmt":"2020-04-28T07:59:24","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=228814"},"modified":"2020-04-28T13:29:24","modified_gmt":"2020-04-28T07:59:24","slug":"measures-to-further-facilitate-fund-raising-from-capital-markets-in-the-backdrop-of-covid-19-pandemic","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/04\/28\/measures-to-further-facilitate-fund-raising-from-capital-markets-in-the-backdrop-of-covid-19-pandemic\/","title":{"rendered":"Measures to further facilitate fund raising from capital markets in the backdrop of COVID-19 pandemic"},"content":{"rendered":"<div class=\"page\" title=\"Page 1\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">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.<\/p>\n<p style=\"text-align: justify;\"><strong>A. Rights Issues<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>1. Fast track Rights issuances<\/strong><\/p>\n<p style=\"text-align: justify;\">Towards expanding the universe of listed entities for the purpose of fast track rights issuances, SEBI has relaxed the following conditions:<\/p>\n<ul style=\"text-align: justify;\">\n<li>The eligibility requirement of average market capitalisation of public shareholding of INR 250 crores has been reduced to INR 100 crores.<\/li>\n<li>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.<\/li>\n<li>The condition related to no audit qualifications on issuer\u2019s audited accounts\u00a0has been replaced with the requirement to disclose the impact of audit\u00a0qualifications on issuer\u2019s financials.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Certain other eligibility conditions with respect to period of compliance with\u00a0the provisions of the listing regulations, ongoing action initiated by SEBI against the issuer \/ promoters \/ directors and settlement of violation of securities laws have also been relaxed<\/p>\n<div class=\"page\" style=\"text-align: justify;\" title=\"Page 1\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p><strong>2. Minimum Subscription<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"text-align: justify;\">To provide greater flexibility in fund raising, the threshold for minimum subscription requirements for a rights issue has been reduced from existing 90% to 75% of the offer size, subject to certain conditions.<\/p>\n<p style=\"text-align: justify;\"><strong>3. Threshold for not filing draft letter of offer with SEBI<\/strong><\/p>\n<p style=\"text-align: justify;\">To reduce the time involved in fund raising and ease compliance requirements, listed entities raising funds upto INR 25 crores in a rights issue will not be required to file draft offer document. The existing threshold in this regard is INR 10 crores.<\/p>\n<div class=\"page\" style=\"text-align: justify;\" title=\"Page 2\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p><strong>B. Flexibility on Issue size<\/strong><\/p>\n<p>An issuer, whose offer document is pending receipt of SEBI observation, shall be permitted to increase or decrease the fresh issue size by up to 50% of the estimated issue size (instead of the present limit of 20%) without requiring to file fresh draft offer document with the Board. The relaxation shall be applicable for all offer documents pending receipt of SEBI observations upto December 31, 2020.<\/p>\n<p><strong>C. Validity of SEBI observations<\/strong><\/p>\n<p>Considering the prevailing economic scenario and based on requests from various industry bodies, it has been decided to extend the validity of SEBI observations on all public issues\/ rights issues by six months from the date of expiry for issuers whose observation has expired\/ shall expire between March 01, 2020 and September 30, 2020.<\/p>\n<p>To summarize, these measures are aimed at expanding the universe of listed entities that are eligible for raising funds through fast track rights issuances, reducing the time involved and providing greater flexibility in fund raising apart from easing compliance requirements.<\/p>\n<p>Circulars issued by SEBI in regard to aforesaid measure are available on SEBI website at www.sebi.gov.in under the category &#8211; &#8216;Legal &#8211; Circulars&#8217;.<\/p>\n<p><strong>Mumbai<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>April 21, 2020<\/strong><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p><strong>Securities and\u00a0<\/strong><b>Exchange Board of India<\/b><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"text-align: justify;\">\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In the wake of challenges for the Indian economy arising out of the Covid-19 pandemic and with a view to improving access <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[40943,39924,40944,40945],"class_list":["post-228814","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-notifications","tag-capital-markets","tag-covid-19","tag-fund-raising","tag-minimum-subscription"],"yoast_head":"<!-- This site is optimized with the Yoast SEO 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REITs and InvITs to issue Commercial Papers","author":"Bhumika Indulia","date":"September 23, 2022","format":false,"excerpt":"On 22-09-2022, the Securities and Exchange Board of India has issued circulars stating that InvITs\/REITs may issue listed commercial papers subject to the following conditions: InvITs and REIT shall abide by the guidelines prescribed by Reserve Bank of India for issuances of commercial papers. InvITs and REIT shall abide by\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"SEBI","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":248455,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/05\/20\/women-in-indian-boardrooms-moving-beyond-tokenism\/","url_meta":{"origin":228814,"position":2},"title":"Women in Indian boardrooms: Moving beyond tokenism","author":"Editor","date":"May 20, 2021","format":false,"excerpt":"by Namrata Rawat\u2020 and Shiva Gaur\u2020\u2020","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/MicrosoftTeams-image-45.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/MicrosoftTeams-image-45.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/MicrosoftTeams-image-45.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/MicrosoftTeams-image-45.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/MicrosoftTeams-image-45.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":370571,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/12\/22\/cyril-amarchand-mangaldas-advises-adani-enterprises-rights-issue-2025\/","url_meta":{"origin":228814,"position":3},"title":"Cyril Amarchand Mangaldas Advises Adani Enterprises on \u20b924,930 Crores Rights Issue","author":"Editor","date":"December 22, 2025","format":false,"excerpt":"The transaction was undertaken in compliance with SEBI ICDR Regulations and marks one of the largest rights issues in the Indian capital markets.","rel":"","context":"In &quot;Law Firms News&quot;","block_context":{"text":"Law Firms News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/law-firms-news\/"},"img":{"alt_text":"CAM Advises Adani Enterprises","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/CAM-Advises-Adani-Enterprises.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/CAM-Advises-Adani-Enterprises.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/CAM-Advises-Adani-Enterprises.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/CAM-Advises-Adani-Enterprises.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":301992,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/20\/khaitan-co-acts-in-relation-to-issuance-of-non-convertible-debentures-by-tata-communications-limited\/","url_meta":{"origin":228814,"position":4},"title":"Khaitan &amp; Co acts in relation to issuance of non-convertible debentures by Tata Communications Limited","author":"Bhumika Indulia","date":"September 20, 2023","format":false,"excerpt":"DEAL DETAILS Tata Communications Limited | Issuance of non-convertible debentures Khaitan & Co (\u201cFirm\u201d) acted in relation to issuance of up to 17,500 rated, unsecured, listed, redeemable non-convertible debentures up to an aggregate amount of INR 1750 crore by Tata Communications Limited (\u201cIssuer\u201d) on a private placement basis (\u201cIssue\u201d). 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