The Security Exchange Board of India (SEBI) has amended the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 with respect to the cool off the gap period between two Qualitative Institutional Placements (QIP) from 6 months to two weeks.
QIPs are a capital raising wherein a listed company can issue equity shares, fully and partly convertible debentures, or any security other than warrants that are convertible into equity shares. This mode of qualified institutional placement is essentially the most expeditious method by which capital can be raised without undergoing any cumbersome process. Generally, by other methods like FPO and rights issues, it takes a lot of time and money to undergo the documentation and approval.
This amendment may have been made owing to the need to raise urgent funds in view of the drastic effects on the economy due to the COVID 19 pandemic.
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