New norms to fast-track capital soon

New norms to fast-track capital soon
PTI
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First Published: Wed, Oct 10 2007. 12 33 AM IST
Updated: Wed, Oct 10 2007. 12 33 AM IST
Mumbai: The norms for faster clearance of qualified institutional placements (QIPs), used by corporates to raise money from the market, will be ready by this month-end, market regulator Securities and Exchange Board of India (Sebi) said on Tuesday.
“The primary market advisory committee of Sebi, at a meeting yesterday, cleared a package of proposal to ease issuances of QIPs,” Sebi chairman M. Damodaran said at a Ficci-IIFT symposium in Mumbai.
“By end of this month, we will have entire framework in place when the board approves the proposal,” Damodaran said, adding around 30 companies can raise fast-track money when the norms are in place. Sebi’s fast-track QIPs clearance will be based on the well-known seasoned issuers (WKSIs) model followed in the US market. India will be only the second country to introduce it and the first in the emerging markets.
“Indian economy has generated certain pace, the growth story will continue no matter what happens on political scene, unlike in the past when there was correlation, today economy is less susceptible to day-to-day changes,” Damodaran said in response to a question on relationship between stock markets and politics. The veteran regulator, who recently received an award, instituted by a media house, for initiating policy changes, gave hints of going firm with the proposal to scrap entry load for direct applications for open-ended mutual funds.
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First Published: Wed, Oct 10 2007. 12 33 AM IST