Capital market regulator Sebi is in the process of finalizing two new innovations - a combo product of rights issue and preferential allotment, along with a demystified offer document - Chairperson Madhabi Puri Buch said at a FICCI event on August 2.
Speaking at FICCI 21st Annual Capital Markets conference in Mumbai, Puri said, "One of the innovations you are going to see very soon, that we have a positive response for is a combo product of a rights issue and a preferential allotment."
The entire process, Buch explained can be finished in 23 days, as compared to a preferential allotment, which listed companies prefer for ease of process, however, which requires more than 40 days to complete.
Through this innovation, Buch said they are removing the regulator and the merchant banker from the process. Sebi is currently in the process of taking out a consultation paper for this, chairperson Buch added.
Buch also said that they are also in the process of creating a demystified offer document, "Coming to a cinema near you soon," Puri jokingly added.
This is being updated
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