The Securities and Exchange Board of India vide its circular dated 9th June 2020 has eased norms related to fast track further public offers, including reducing the minimum average market capitalization of public shareholding requirement.
Certain temporary relaxations with respect to Regulation 155of ICDR Regulations are extended as follows:
- The required average market capitalisation of public shareholding of the company concerned has been reduced to Rs 500 crore from Rs 1,000 crore.
- 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.
- The impact of audit qualifications, if any and where quantifiable, on the audited accounts of the issuer in respect of those financial years for which such accounts are disclosed, shall be appropriately disclosed and accounts accordingly restated, in the offer documents.
- Further, for the qualifications wherein impact on the financials cannot be ascertained the same shall be disclosed appropriately in the offer documents.
These temporary relaxations are applicable for FPOs that open on or Before March 31, 2021.
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