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Showing posts from March 17, 2020

Sebi May Relax Rules on 6-Mth Gap Between Two QIP Issues

The Securities and Exchange Board of India (Sebi) on Monday proposed to relax the requirement of the mandatory six-month gap between two successive Qualified Institutional Placement (QIP) issues. The regulator said it has received requests from companies seeking a waiver on this requirement of a six-month cooling off period between two successive QIP issues. “The reasons for such exemption, as informed by the issuer companies, are urgent needs of funds and the fact that other fund raising mechanisms, such as a public issue or rights issue, are time-taking in comparison to a QIP issue,” Sebi said in a discussion paper that seeks public comments by April 15. The proposal was discussed by Sebi’s expert committee on primary markets. To address concerns of companies and to support fundraising, relaxation may be provided for successive QIPs within six months of previous QIP issues, in cases where terms of placement for the subsequent issues are disclosed upfront in the special resolutions.