The Securities and Exchange Board of India (Sebi) eased rules for pricing preferential shares issued by stressed firms to raise funds. According to the new norms, eligible listed firms with stressed assets will be able to determine the pricing of their preferential allotments at not less than the average of the weekly high and low of the volume-weighted average prices of the related equity shares during the two weeks preceding the relevant date.
Aims to help raising capital
The framework is aimed at helping stressed companies raise capital through timely financial intervention.
Sebi also said allottees of the preferential issue in such eligible companies will be exempt from making an open offer if the acquisition is beyond the prescribed threshold or if the open offer is warranted due to change in control in terms of takeover regulations.
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