Chapter
VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009
(‘Preferential Issue Regulation’) deals with issue of securities on preferential
basis by companies listed on the Indian stock exchanges.
Vide
Notification dated 26th August, 2013 (‘Notification’) SEBI has made certain
amendments to the said Chapter. This Alert summarises the key amendments
introduced through the Notification.
Listed
companies in India have long made use of the preferential allotment route to
garner funds on private placement basis.
Vide
the Notification, it appears that the capital market watchdog, SEBI has sought
to bring about more transparency, accountability and audit trail to the process
of preferential issues
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