Sebi, industry discuss market-related relaxations

NEW DELHI: Market regulator Sebi has held discussions with industry on steps that may be required to help them tide over the current crisis, even as RBI prepares to announce measures later this week to deal with the impact of the West Asia conflict.

Sebi met industry bodies last week, where some steps have been proposed in view of the sharp fall in indices and the stock market volatility across the globe. Ficci members who met Sebi have sought a one-time 12month extension for companies to meet the minimum public stock holding norm of 25% in case they are required to comply with the rule by Dec 2026.

It also said a one-time extension of 12 months for observation letters for a public or rights issue that are to expire by Dec 31 should be considered.

“Sebi may also consider permitting preferential issue and block trades, without any caps, as methods for MPS compliance, as these are more time efficient methods and will enable large issuers or promoters of larger companies to execute fund raise or share transfers with select interested investors,” the industry body recommended. It also suggested that promoters be allowed to participate through the QIB route, with adequate safeguards.

Ficci also wants the creeping acquisition limit to be doubled to 10%, arguing it will help businesses to be better capitalised and enhance confidence among public shareholders. It has also proposed changes to the voluntary delisting framework.

Separately, RBI is expected to announce some measures to help buffer Indian companies from the impact of the West Asia conflict, including steps to bolster inflows and strengthen the rupee, which has slid 2.3% since the start of the war. Although there are competing currencies that have been hit harder, checking the fall is seen to be critical to combat the impact of inflation due to higher cost of imports.

Besides, it will decide on some of the measures such as a moratorium and additional funding support to MSMEs and exporters that have been sought by industry bodies.
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