India’s securities regulator has announced measures to ease capital raising by listed companies

by | Jun 19, 2020

India’s securities regulator has announced some measures to ease capital raising by listed companies.

The creeping acquisition limit has been increased to 10% voting rights for promoters acquiring equity shares through a preferential issue until March 31, 2021. Such acquisitions will not trigger an open offer. This change will incentivise promoters to buy equity at cheaper valuations given the current market conditions and also work as a viable capital raising route for companies.

Additionally, the mandatory time gap between QIPs has been reduced to 2 weeks in a bid to fasten capital raising.

More News

The Legal 500 2024 Rankings

We are pleased to share that our firm has been recognised for its work across practice areas by The Legal 500 (Legalease) in their 2024 rankings. Firm Rankings Antitrust and Competition Corporate and M&A Data Protection Dispute Resolution: Litigation Intellectual...

read more

“Workman” interpreted under Indian employment law

In the recent case of Rohit Dembiwal v. Tata Consultancy Services Ltd., the Bombay High Court held that an IT analyst did not qualify as a “workman” under the Industrial Disputes Act, 1947, as his day-to-day responsibilities were supervisory in nature, and his...

read more

EXL Service.com deemed not to have a PE in India

Last week, in the EXL Service.Com, Inc. case, the Delhi Income-tax Appellate Tribunal (Tribunal) followed the Supreme Court’s rulings in the Formula One and E-Funds cases and, inter alia, held that a US taxpayer does not have a fixed place permanent establishment...

read more