The new norms -- to help companies save cost and time with a faster process and also check any manipulation in share price associated with a longer time-frame-- will be put up for approval at SEBI's board meeting next week
To make delisting easier and faster, market regulator Securities and Exchange Board of India (SEBI) will soon announce a new set of regulations wherein time required to complete such an exercise may be more than halved from a minimum of 137 days at present.
The changes are being made after taking into account suggestions made by the industry and other stakeholders, including market entities and investors.
The new norms -- to help companies save cost and time with a faster process and also check any manipulation in share price associated with a longer time-frame-- will be put up for approval at SEBI's next board meeting.
According to sources, the board of SEBI is likely to meet next week. It will also discuss new insider trading norms and listing regulations.
As per the proposed delisting norms, the whole exercise could be completed in more than half of 137 days currently required for completion of the process. At times, the process takes more than a year.
Besides, a company has to make a public announcement regarding the delisting process soon after the board meeting and letter of offer has to be dispatched within a week. The delisting offer would be for a period of four-five days.
Under the new regulatory regime, a company has to make payment or return the shares within a month as against the current practice which takes about three months.
The new rules on the matter come against the backdrop of concerns raised by various entities about existing delisting process which at times is also seen as time-consuming.
The delisting offer will be considered successful if the holding of the promoter (or acquirer) reaches 90% post offer.
Current rules require the acquirer to either reach higher of 90% of the total issued share capital or acquire at least 50% of the offer size.
SEBI may also do away with the requirement for shareholder's nod and bourses' approval for the delisting process.
The offer price could be determined on a 'fixed-price' basis or a two-step process through which the promoter could make a counter offer.
The current delisting regulations were put in place in 2009 and it facilitates removal of the securities of a listed company from a stock exchange with promoters buying out shares held by minority shareholders.
The changes in SEBI's delisting norms are being considered to harmonise them with other regulations, including the new Companies Act and other regulations of SEBI itself such as takeover and buyback norms.
During October, Indian companies garnered Rs38,399 crore from debt on a private placement basis, lower than Rs58,578 crore raked up in September
Fund mobilisation by Indian companies through private placement of corporate debt securities or bonds plunged by 34% to just over Rs38,000 crore in October 2014.
In debt private placements, companies issue debt securities or bonds to institutional investors to raise capital.
According to the data available with the Securities and Exchange Board of India (SEBI), companies garnered a total of Rs38,399 crore during October from debt on a private placement basis, lower than Rs58,578 crore raked up in September.
Besides, the number of issuances fell to 279 in October from 312 in the preceding month.
Fund raising through private placement has been lately subdued owing to a robust performance of the stock market. Moreover, companies are opting for initial public offer (IPO), qualified institutional placement (QIP) and rights issue route to mop up funds.
With the latest fund mobilisation, overall capital raised through private placement of debt securities, so far, reached Rs1.84 crore in the current financial year as against Rs2.76 lakh crore mobilised during the entire 2013-14.
Privatisation of national carrier Air India will not happen immediately, but cannot be ruled out in future, the civil aviation minister said
State-owned Airports Authority of India (AAI) and national helicopter company Pawan Hans will be listed on the stock exchanges to improve transparency and efficiency, Civil Aviation Minister Ashok Gajapathi Raju said on Monday.
The Minister also said that privatisation of national carrier Air India will not happen immediately, but cannot be ruled out in future and there have been suggestions from various quarters in this regard.
Proposals for listing of AAI and Pawan Hans have been made in the Draft Civil Aviation Policy, released by Raju.
Raju said that an expert committee will be constituted to develop the future roadmap for Air India.
"It is essential to ensure that the national carrier achieves its full potential," the Minister said, while adding that a Mission Mode project will also be set up to ensure that all organisations under the Ministry are competitive in terms of cost and efficiency.
"AAI will be corporatised followed by its listing on the stock exchanges to improve efficiency and transparency," Raju said, adding that listing of Pawan Hans would also be undertaken with the same objective.
AAI, a miniratna public sector enterprise, manages 125 airports across the country, including 11 International, 81 domestic and eight Customs Airports. It also manages 25 Civil Enclaves at Defence Airfields.
It has entered into joint ventures at Mumbai, Delhi, Hyderabad, Bengaluru and Nagpur Airports to upgrade them.
AAI also provides air traffic management services over entire Indian Air Space and adjoining oceanic areas with ground installations at airports and other locations.
Pawan Hans was incorporated in 1985 and presently its shareholding comprises 51% with the Indian government and 49% with state-run ONGC.
It was incorporated with the primary objective of providing helicopter support services to the oil sector for its off-shore exploration operations, services in remote and hilly areas and charter services for promotion of tourism.
Over the years, it has grown into one of Asia's largest helicopter companies and has a fleet of 47 helicopters.