Sebi chief hears out industry, promises more steps to help corporates tide over COVID-19 challenges

New Delhi, Apr 22 () Sebi will look into issues being faced by corporates due to COVID-19 and consider more steps to help them tide over the challenges as part of its continuing efforts to make it easier to do business even in such difficult times, the regulatory body's chairman Ajay Tyagi told representatives of India Inc on Wednesday.

In a conference call with the apex industry body CII (Confederation of Indian Industry), Tyagi apprised the industry leaders of various steps already taken by the Securities and Exchange Board of India (Sebi) and promised to look into various issues raised by them.

Sources said CII appreciated a number of proactive efforts being taken by Sebi, which in turn promised to consider more steps to help the industry tide over the challenges posed by COVID-19 and the nationwide lockdown.

CII's President Vikram Kirloskar, President-Designate Uday Kotak and Director General Chandrajit Banerjee were among the industrialists who attended the conference call, while Tyagi was also joined by other senior officials from Sebi.

Several issues concerning the industry in light of the lockdown due to COVID-19 were discussed in the meeting.

Raising of capital by corporates, holding annual general meetings, disclosure requirements, buybacks of securities, matters concerning mutual funds were some of the major issues discussed in the meeting, according to an official privy to the development.

The conference call helped both Sebi and CII understand the concerns, the official said.

Sebi has taken several proactive measures in easing the burden of corporates in regulatory compliance by introducing relaxations like extension of date for filings to be made to stock exchanges like quarterly and annual financial results, corporate governance report, shareholding pattern, etc, for listed entities.

The regulator has also granted a one-time relaxation in its primary market fund-raising norms to make it easier for companies to raise capital amid the COVID-19 pandemic.

Rights issues are now considered successful if the minimum subscription received is 75 per cent, as opposed to 90 per cent earlier.

Further, in case of fast track issues, the eligibility criteria of average market capitalisation of public shareholding of the issuer has been relaxed to Rs 100 crore from the earlier Rs 250 crore.

Sebi has also extended the validity of observation letters issued by it for initial public offerings (IPOs) and rights issues as well as new fund offer (NFO) documents for mutual funds by six months.

"These measures are aimed at improving access to funding to corporates through capital markets," the official said.

Sebi has also given relaxations for market intermediaries such as stock brokers, depository participants and share transfer agents (RTAs). Deadlines for implementation of stewardship code for mutual funds, overhaul of regulations governing portfolio management services (PMS), mutual funds and alternative investment fund have been extended too.

To ensure orderly functioning of the market, Sebi has put in adequate risk management measures in place. BJ HRS