SEBI fast-tracks rights issue timelines

The SEBI board has taken steps to enable faster rights Issue along with the flexibility of allotment to specific investors. Rights issues will need to be completed in 23 working days from the date of issuer’s board meeting approving the issue, as against present average timelines of 317 days. The issuer will no longer be required to file a draft letter of offer or appoint a merchant banker for the same.

SEBI has given an option to investors to trade in the cash market either using a UPI block mechanism (ASBA-like for secondary markets), or 3-in-1 trading facility in addition to the current mode of trading. One of the two facilities will need to be mandatorily offered by qualified stock brokers.

Norms eased

The regulator has eased norms for investment advisors and research analysts. The minimum qualification requirement is to be reduced to graduate degree in specified fields. There will be no requirement of experience for registration as IA and RAs. IAs/RAs will be required to have base certifications only initially at the time of registration. Net-worth requirement will be replaced with a reduced requirement of deposits. The requirement for corporatisation by individual IAs has been relaxed. The threshold would now be 300 clients or fee collection of ₹3 crore during the financial year, whichever is earlier as compared with the existing threshold of 150 clients.

SEBI has given its nod to a single filing system for listed entities to file relevant reports and documents on one exchange. Periodic filings can be integrated into two broad categories Integrated Filing (Governance) and Integrated Filing (Financial), to minimise the number of filings done. System driven disclosure of shareholding pattern and revision in credit ratings by Stock Exchanges will reduce the reporting requirements on listed entities.