Recently, Sebi board had decided that unlisted companies raising funds through securities without having a public offer document will be exempted from penal action if they provide a refund option along with 15 per cent interest rate at the time of issuance.
The relaxation would be applicable on entities that have raised funds by issuing securities to more than 49 persons, but up to 200 individuals in a financial year.
He noted that the board saw the legislative intent and "when the new law said 200 we said anyone who has gone up to 200 maybe by honest mistake we will permit them to return the money to the investors and close the chapter".
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Under the Companies Act, 2013 - whose most provisions came into effect from April 1, 2014 - any offer or allotment of securities is considered as public issue if the number of allottees exceeds 200 in a financial year. This provision replaced the cap of 49 persons in the Companies Act, 1956.
On developing the country's bond markets, Sinha said there were issues both on the demand and the supply side.
"There is now focus on recovery of loans and focus on reduction in non performing assets maybe more and corporates would be incentivised to come to the bond market", he said.
"These matters are discussed in the forum of regulators and the government", he said.
"In the last 2-3 years there has been some improvement but not to the desired level. For the development of bond market, Sebi has also started focusing on role credit-rating agencies (CRAs) and debenture trustees", he noted.
He also urged the investment bankers to look into start-up segment as well as participate in REITs issuances and municipal bonds, given that smart cities were being planned by the Central government.