Sebi plans to cut IPO timeline by half
09/01/2015 13:58
In a move to boost fund raising from the market and reducing the timeline for listing of shares, the Securities and Exchange Board of India (SEBI) has proposed to decrease the time-line for an initial public offering (IPO). Sebi in a discussion paper on ‘Revisiting the capital raising process’ has proposed to decrease the time-line for an initial public offering (IPO) - from closing to listing and trading - to seven days from 13 days at present. The market regulator is also planning to tweak rules that will help companies with market capitalization of Rs 250 crore or more to fast-track rights issues and follow-on public offers (FPOs) subject to certain conditions. Under the current rules, companies must have a public market cap of at least Rs 3,000 crore. Additionally, it has also proposed to drastically cut the timeline for listing of shares within 2-3 days of the IPO, as against 12 days presently. Besides, SEBI has proposed a fast-track route for already listed entities for raising funds through follow-on public offers (FPOs) or rights offers, where funds can be raised from existing shareholders. In addition, the paper also suggested exempting central public sector enterprises (CPSEs) opting for the fast-track route from the requirement of a minimum average market capitalisation provided they comply with the fast-track route conditions.
09/01/2015 13:58
In a move to boost fund raising from the market and reducing the timeline for listing of shares, the Securities and Exchange Board of India (SEBI) has proposed to decrease the time-line for an initial public offering (IPO). Sebi in a discussion paper on ‘Revisiting the capital raising process’ has proposed to decrease the time-line for an initial public offering (IPO) - from closing to listing and trading - to seven days from 13 days at present. The market regulator is also planning to tweak rules that will help companies with market capitalization of Rs 250 crore or more to fast-track rights issues and follow-on public offers (FPOs) subject to certain conditions. Under the current rules, companies must have a public market cap of at least Rs 3,000 crore. Additionally, it has also proposed to drastically cut the timeline for listing of shares within 2-3 days of the IPO, as against 12 days presently. Besides, SEBI has proposed a fast-track route for already listed entities for raising funds through follow-on public offers (FPOs) or rights offers, where funds can be raised from existing shareholders. In addition, the paper also suggested exempting central public sector enterprises (CPSEs) opting for the fast-track route from the requirement of a minimum average market capitalisation provided they comply with the fast-track route conditions.
