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Sebi plans to ease fundraising norms for listed stressed companies

Sebi plans to ease fundraising norms for listed stressed companies

The Securities and Exchange Board of India (Sebi) on Wednesday proposed easier pricing norms, as well as exemptions from open offers, for investments made through the preferential route in stressed listed companies.

According to the regulator, the existing pricing guidelines for buying via the preferential route are too onerous for any financial investor to consider investments in a stressed company.


Currently, the pricing covers a period of 26 weeks or more for frequently-traded shares. This large latency in pricing period leads to a wide gap in pricing between the price at the beginning of the 26 weeks and the current price — when funds are required to be raised — especially given the deteriorating financial condition of the listed company.

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