New Sebi norms to give more fund-raising flexibility to stressed firms

Promoters of stressed companies will get more flexibility in attracting investors and the process of determining the right price for assets would get easier following a new set of amendments introduced by capital market regulator Sebi in its preferential share issuance norms.

Market experts said the new guidelines provide flexibility to the promoters and promoter group entities to attract investors for their companies rather than becoming completely dispossessed as under the IBC framework.

The amendments can also help promoters get financial investors on board without losing control of the company. Even if they get investors who wish to take control,