Covid-19 impact: Sebi relaxes capital raising norms for listed companies

Sebi has also relaxed the norms for qualified institutional placements (QIP), a popular route to raise fresh capital from institutional investors.

To tide over the liquidity crisis created by the Covid-19 pandemic, the Securities and Exchange Board of India (Sebi) has eased capital raising norms for listed companies.

The markets regulator has amended the takeover code to allow promoters to acquire up to 10 per cent in a financial year without triggering an open offer. However, such an acquisition can be done only through the preferential issue of equity shares. In other words, promoters will have to infuse fresh capital into their company and not simply acquire shares from the secondary market.

In the normal course, promoters are allowed to increase their stake