SEBI has provided one-time relaxation in the eligibility conditions related to Fast Track Rights Issues:
1. The minimum period of listing, no default in compliance with SEBI (LODR) and suspended from trading as a disciplinary measure prior to reference date – 18 months instead of 3 years.
2. The average market capitalisation of public shareholding – At least 100 Crores instead of 250 Crores
3. Adjudication proceedings against the issuer or its promoters or whole-time directors as on the reference date – shall not make the issuer ineligible subject to necessary disclosures in the offer letter
4. Consent or settlement mechanism – only fulfilment of these terms w.r.t. violations of securities law
5. Audit qualifications on accounts of the issuer for financial years as disclosed in offer letter – disclosure of qualifications and restated financials in offer letter Relaxation with respect to Minimum Subscription: 75% of issue size in place of 90% Relaxation with respect to the minimum threshold required for not filing a draft letter of offer with SEBI – Issue of specified securities of Rs. 25 Cr against Rs. 10 Cr
Effective date: April 21, 2020
Source: SEBI Circular dated April 21, 2020
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