SEBI made fund-raising easier for corporate India and tightened noose on fraudsters
In order to raise funds easier for companies through genuine equity or debt offers, the market regulator SEBI approved new norms for its search and seizure operations, settlement proceedings, refund to investors and crackdown on illicit money-pooling schemes.
The measures of new norms:-
- To consider the Financial Portfolio Investors (FPIs) similar to Foreign Institutional Investors (FIIs) on tax purposes.
- To raise funds through Initial Public Offer (IPO) of equity shares and allowed companies to file shelf prospectus for debt offers that would be valid for multiple offers within a year.
- To ensure faster refund of money to investors, essential checks are put in place to avoid any misuse of its newly granted powers with regard to conduct of search and seizure of fraudsters and market manipulators.
- And detailed regulations have also been put in place for settlement of administrative and civil proceedings in a transparent manner, while ensuring that serious offences like insider trading are kept out of settlement window.
These decisions are related to the promulgation of an ordinance by the government for grant of greater powers to SEBI to check mushrooming of illegal money-pooling schemes across the country and to take strict actions against fraudsters and market manipulators.