Sebi proposes changes to ease fundraising, disclosure for listed companies

India's capital market regulator on Thursday proposed changes in rules for fundraising and disclosure requirements for listed companies, according to a discussion paper on the regulator's website.

A discussion paper is the first step before potential policy changes by the Securities and Exchange Board of India (SEBI) for listed entities, funds, and brokers. Market participants can comment on the proposed revisions by Feb. 1, after which the regulator will finalise the rule.

The regulator proposes considering funds and insurance companies holding 5% in firms post-public offer as large non-public shareholders, as per the paper.

Refiling of offer documents will also be necessary in case of changes in the size of the offer or the number of shares involved, the paper said.

Currently, companies need to refile public offer documents when there are changes in the money involved in the offer.

The bidding dates for issue of capital will only be extended by one day in the case of force majeure events, as opposed to the current practice of extending them by three days.

Further, companies are required to disclose information about upcoming board meetings two days in advance. If a board meeting is only to consider borrowing funds without issuing shares, the company is exempt from the requirement to make prior intimation.