Sebi met with industry bodies last week, where several proposals were discussed in response to the sharp decline in indices and increased global market volatility. Members of Ficci who attended the meeting have requested a one-time 12-month extension for companies to meet the minimum public stock holding requirement of 25%, especially for those due to comply by December 2026.
They also suggested granting a one-time 12-month extension for observation letters related to public or rights issues that are set to expire by December 31.
“Sebi may also consider permitting preferential issue and block trades, without any caps, as methods for MPS compliance, as these are more time efficient methods and will enable large issuers or promoters of larger companies to execute fund raise or share transfers with select interested investors,” the industry body recommended. It further proposed allowing promoters to participate through the QIB route, with appropriate safeguards in place.
Ficci has also urged that the creeping acquisition limit be increased to 10%, saying this would help companies strengthen their capital base and boost confidence among public shareholders. In addition, it has recommended changes to the voluntary delisting framework.
Separately, the RBI is expected to roll out measures to cushion Indian companies from the effects of the West Asia conflict. These may include steps to improve capital inflows and support the rupee, which has fallen 2.3% since the war began. While some other currencies have declined more sharply, stabilising the rupee is considered important to control inflation arising from higher import costs.
The RBI is also likely to decide on proposals such as a moratorium and additional funding support for MSMEs and exporters, which have been requested by industry groups.
(With TOI inputs)