To boost fund raising from markets, SEBI notified new norms related to fast track issues and also had issued the SEBI (ICDR)(Third amendment) Regulations, 2015 dated 11th August, 2015, which will provide all listed companies a ‘fast-track’ route for share sales.
As per the new norms, firms in which public shareholders own stocks worth Rs 1,000 crore will now be able to access this route through a follow-on public offer (FPO). Currently, the minimum requirement is Rs 3,000 crore.
The minimum public holding requirement for a rights offer is Rs 250 crore. The listed companies can tap the ‘fast-track’ route even without complying to this minimum average market value limit, provided they meet other conditions.
Under the ‘fast-track’ route, a listed company would not be required to file any draft offer document for its FPO or rights issue and they can proceed with fund-raising programme without necessarily getting ‘observations’ from SEBI.
This new route would also give a boost to the government’s disinvestment drive.
Securities and Exchange Board of India (SEBI) said that in the case of rights issues, promoters will not renounce their rights, except to the extent of renunciations within the promoter group, or for the purposes of complying with minimum public shareholding norms.
Please refer to the below link to access the notification