Direct Tax Services
Select Your Location
The Securities and Exchange Board of India (SEBI) recently relaxed the pricing methodology for preferential issues by listed companies having stressed assets and exempted allottees of preferential issues from open offer obligations in such cases with immediate effect. In this article, we shall discuss the relaxation for listed companies.
Table of Contents
A company whose share is traded on an official stock exchange is regarded as a listed company. It is required to adhere to the listing requirements of that exchange, which shall include how many shares are listed and a minimum earning level. Listed companies are owned by many shareholders. The shareholders are entitled to two forms of return by investing in a listed company. They are dividend and capital gains.
According to SEBI, the framework will help stressed companies to raise capital through timely financial intervention, and it will also protect the interests of the shareholders. The regulator has earlier also taken the decision to relax many laws amidst the Covid-19 pandemic. These relaxations are essential considering the entire nation was under lockdown which restricted a lot of activities.
The relaxation for listed companies from SEBI includes the following:
A listed company meeting any two out of the following three conditions will be considered as stressed and hence shall be eligible under relaxation for listed companies:
To avail the relaxation for listed companies, the eligible listed companies are required to adhere to the following conditions:
Usually listed companies having stressed assets may have a progressive fall in their share price. Moreover, the disclosure that is made by the stressed companies such as their financial results and default in servicing debts also aggravates the fall. Such firms face difficulty in raising capital through traditional means. Therefore, the Securities and Exchange Board of India (SEBI) eased the pricing methodology of preferential issues by such firm.
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
Many investors use fixed deposits as their primary investment vehicle. Investors with a high-ri...
The main idea of CDS, which was initially to give banks a way to transfer credit exposure, has...
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Are you human?: 8 + 5 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The SEBI is established with the main aim of protecting the interests of investors and regulating the securities in...
17 Jan, 2023
On 16th February 2023, the SEBI issued the (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 ("Ta...
29 Mar, 2023
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!