The Securities and Exchange Board of India (SEBI) has recently announced a slew of changes to key SEBI regulations such as SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 (ICDR Regulations) and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 (Takeover Regulations), aimed primarily at facilitating fundraising for companies with stressed assets (Stressed Companies).
The recent experience shows that the cash-strapped companies have been constrained to raise fresh capital due to the pricing framework under the ICDR Regulations which required to take into account historical trading prices of 26 weeks. These relaxations for preferential issues by Stressed Companies are a welcome relief as it will help such Stressed Companies to attract investments at more current prices.
The above changes also afford a unique opportunity to investors to acquire “control” of Stressed Companies by infusing capital at current valuations.
Relaxations in preferential allotment by companies with stressed assets
The amendment to ICDR Regulations 1 now allows Stressed Companies to undertake preferential allotment at a price which is not less than the average of the weekly high and low of the volume-weighted average price (VWAP) of the shares during the 2 weeks immediately preceding the relevant date, subject to compliance with the prescribed conditionalities. The amendment specifies objective parameters to determine companies which are eligible to be categorized as Stressed Companies.
Diese Geschichte stammt aus der August 2020-Ausgabe von Legal Era.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 2020-Ausgabe von Legal Era.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
If You Think Positive Covid Is A Big Opportunity
Senior Vice President and Head of Legal, ESSAR CAPITAL, Badrinath Durvasula, holds forth on his professional journey, the essence of leadership, working from home, books and more…
PROJECT DEVELOPMENT
JOINT VENTURE TRANSACTIONS
NEW ARBITRATION RULES
PUBLISHED BY THE LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) AND INTERNATIONAL CHAMBER OF COMMERCE (ICC)
M&A in the time of COVID and beyond
What is clear for those engaging in cross-border M&A is that countries around the world are becoming increasingly protective of their economies and industries, with new rules being introduced and existing rules being more widely applied
SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD
Swiss law interprets the offense of fraud in a special way where in addition to the characteristics of deception and damage as known in many jurisdictions, a qualified lie, i.e. a malicious approach, is required
JOINT VENTURE DISPUTES MEDIATING
Mediation has shown itself to be a powerful tool for bringing a speedy and effective end to crossborder disputes while preserving the commercial relationship between them.
Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA
A TEST CASE IN THE MAKING?
CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE
Two recent developments in Singapore case law and legislation reflect a willingness to preserve confidentiality related obligations in all arbitrations
ESSENTIAL GOODS SERVICES UNDER IBC
WHAT DOES IT ESSENTIALLY MEAN?
A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE
A LOOK AT THE KEY CHANGES PRESIDENT-ELECT BIDEN IS LIKELY TO MAKE ONCE HE TAKES OFFICE
