SEBI eases norms for Further Public Offer amid coronavirus pandemic

Markets regulator SEBI on Tuesday eased norms related to fast track further public offers, including reducing the minimum average market capitalisation of public shareholding requirement, till March next year.

In the wake of the coronavirus pandemic, the watchdog has already relaxed eligibility conditions related to Fast Track Rights Issue.

The temporary relaxations would be applicable for Further Public Offer (FPO) that open on or before March 31, 2021, SEBI said in a circular on Tuesday.

Now, the required average market capitalisation of public shareholding of the company concerned has been reduced to Rs 500 crore from Rs 1,000 crore.

Further, eligibility conditions for fast track FPO pertaining to period of compliance with the provisions of the listing regulations, ongoing action initiated by SEBI against the issuer/ promoters/ directors and settlement of violation of securities laws have been relaxed.

According to the regulator, impact of audit qualifications on the audited accounts of the issuer in respect of those financial years for which such accounts are disclosed should be appropriately disclosed and accounts accordingly restated in the offer documents.

“Further, that for the qualifications wherein impact on the financials cannot be ascertained the same shall be disclosed appropriately in the offer documents,” the circular said.

SEBI noted that the temporary relaxations would not be applicable for issuance of warrants.

Published on

June 09, 2020

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