Thursday, April 23, 2020

SEBI proposes to relax norms on pricing of preferential issues in Companies having stressed assets

The SEBI has observed that listed companies facing financial stress are generally in need of fund infusion to tide over the stress situation. Such listed companies face certain difficulties in raising capital through the conventional means. Moreover, listed cos. having “stressed assets” experience progressive fall in their share price. Therefore, SEBI has issued consultation paper on pricing of Preferential Issues and exemption from open offer for acquisitions in Cos. having Stressed Assets.

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