Chennai: Securities and Exchange Board of India (SEBI) Chief M Damodaran has said that the timeline for companies to raise money through IPO would be reduced.
This will bring the whole process of raising money through the capital market, in line with the international market.
However this will be done without diluting regulations.
He made this announcement after addressing the 33rd National convention of the Institute of Company Secretaries of India (ICSI) in Chennai.
Stating that transactional efficiency in India is the best in the world, he expressed concern over the enormous timeline that exist at present in raising money from the capital market.
This had resulted in companies going for Global Depository Receipt (GDR) issue, which was faster and cheaper.
Even the regulatory requirements in GDR was far less when compared to the stringent American Depository Receipt (ADR) norms in the US.
''We are looking at it. SEBI is working on a very simple principle to prevent time loss to raise funds from capital market. It can be done before the calendar year without diluting the essence of regulations'', he added.
''Without lowering the bar, we will put in a framework that reduces the timeline along with a simplified process to persuade the companies that Indian market is the place to raise money,? Damodaran said.
The time line has to be drastically reduced as a company after filing the documents, had to wait for 21 days for the book-building process to continue.
''The tight ropewalk will continue. But the days will be reduced. A new set of norms will be in place around by the end of this year'', he added.
Comments
0 comment