New Delhi: Market regulator SEBI has discussed with the industry the steps that may be required to help them deal with the ongoing crisis, even as the RBI prepares to announce measures to deal with the impact of the Middle East conflict later this week.SEBI met industry bodies last week, where some steps have been proposed in view of the sharp fall in indices and stock market volatility across the world. FICCI members meeting SEBI have sought a one-time extension of 12 months for companies to meet the minimum public stock holding norm of 25% if they are required to comply with the rule till December 2026.It also said that a one-time extension of 12 months should be considered for public or rights issue observation papers expiring by December 31.“Sebi may also consider allowing preferential issue and block trades without any limits as methods of MPS compliance, as these are more time efficient methods and will enable large issuers or promoters of large companies to raise funds or transfer shares with selectively interested investors,” the industry body recommended. It also suggested that promoters should be allowed to participate through the QIB route with adequate safeguards.
FICCI also wants the incremental takeover limit to be doubled to 10%, arguing that this will help businesses become better capitalized and increase confidence among public shareholders. It has also proposed changes to the voluntary delisting framework.Separately, the RBI is expected to announce some measures to help Indian companies insulate themselves from the impact of the Middle East conflict, including steps to boost inflows and strengthen the rupee, which has fallen 2.3% since the start of the war. Although there are competing currencies that have been hit hard, it is considered important to stop the decline to deal with the impact of inflation due to the high cost of imports.Additionally, it will decide on certain measures such as moratorium and additional funding support for MSMEs and exporters, which have been sought by industry bodies.
