Easier equity funding

The Securities and Exchange Board of India (Sebi) last week released an amended set of guidelines on takeovers and equity. They sought to make it easier for entrepreneurs and promoters to raise fresh equity during 2020-21. Promoters may, during this financial year, acquire up to 10 per cent of shareholding via the creeping acquisition route without triggering mandatory open offers under the Takeover Code. The previous threshold for this route was up to 5 per cent of equity annually. Beyond this, the process of a mandatory open offer was triggered.

However, the new 10 per cent limit doesn’t apply to secondary