SEBI has invited suggestions from the public to allow more companies to participate in the fast-track platform to raise funds through further public offers and right issues without filing draft offer document. One of the suggestions the market regulator has mooted is relaxation of the ₹3,000-crore average market capitalisation requirement. Under the current norms, only 183 companies are eligible. SEBI said this number would rise to 359 if the public float condition is relaxed to ₹1,000 crore.

The requirement of average market capitalisation of public shareholding was ₹10,000 crore in 2009. The requirement was subsequently brought down to ₹5,000 crore and further down ₹3,000 crore in October 2012.

SEBI said it is contemplating whether alternatively, if the company does not meet the public float criteria, should there be other additional conditions.

For facilitating divestment of Central Public Sector Enterprises (CPSEs), SEBI has recommended that the fast-track issue route should be available for them without the minimum average market capitalisation norm, subject to them complying with all other existing conditions.

Further, in cases where CPSEs are not able to comply with any of the conditions, SEBI may, based on the merits of the case, consider granting exemption.

SEBI also sought suggestions simultaneously to ensure adequate protection of investors.

Related Topics
comment COMMENT NOW