Stock market regulator Securities and Exchange Board of India (SEBI) on Tuesday decided to relax the pricing methodology for preferential issues by listed compes having stressed assets and exempt allottees of preferential issues from open offer obligations with immediate effect.
Eligible listed compes having stressed assets will now be able to determine the pricing of their preferential allotments at not less than the average of weekly high and low of the volume-weighted average prices of related equity shares during the two weeks preceding the relevant date.
Allottees of the preferential issue in such eligible compes will be exempted from making an open offer if the acquisition is beyond the prescribed threshold or if the open offer is warranted due to change in control in terms of takeover regulations.
"The framework is aimed at helping stressed compes raise capital through timely financial intervention and protecting the interest of shareholders," said SEBI in a statement.
( With inputs from ANI )