On Friday, the Securities and Exchange Board of India (Sebi) proposed a series of changes to norms pertaining to raising equity capital. Among the proposed changes include an enhancement in the limit from Rs. 5 million to Rs. 100 million for filing a "draft letter of offer" in case of a rights issue.
In case of IPO, the market watchdog has proposed reduction in time gap between the announcement of price band and launch of IPO issue from current 5 working days to 2 days instead.
The Sebi has also proposed to allow companies coming up with an IPO issue to extend the IPO duration from the present three days time without any reduction in price band. The market regulator has also come with proposals to merge the provision related to the institutional placement programme (IIP) and qualified institutional placement (QIP).
In respect of fund raising norms for small and medium enterprises (SME) platform, SEBI has proposed some of the changes that include increase of maximum post-issue face value capital for a SME public issue to Rs. 500 million from Rs. 250 million.