R Ltd is a real estate company which was formed in 1950. In about 56 years of its existence, the company has managed to carve out a niche for itself in this sector. Lately, this sector is witnessing a boom due to the fact that the Indian economy is on the rise. The incomes of the middle class are rising. More people can afford to buy homes for themselves due to the easy availability of loans and accompanying tax concessions.
To expand its business in India and abroad, the company weighs various options to raise money through equity offerings in India. Whether to tap equity or debt market, whether to raise money from domestic market or international market or combination of both? When to raise the necessary finance from the money market or capital market? It is also planning to list itself in New York Stock Exchange to raise money through ADRs. To make its offerings attractive, it is planning to offer the host of financial plans and products to its stakeholders and investors and also expand its listing at NSE after complying with the regulations of SEBI.
What are the regulations of SEBI that the company must comply with?
R Ltd is a real estate company which was formed in 1950. In about 56 years of its existence, the company has managed to carve out a niche for itself in this sector. Lately, this sector is witnessing a boom due to the fact that the Indian economy is on the rise. The incomes of the middle class are rising. More people can afford to buy homes for themselves due to the easy availability of loans and accompanying tax concessions.
To expand its business in India and abroad, the company weighs various options to raise money through equity offerings in India. Whether to tap equity or debt market, whether to raise money from domestic market or international market or combination of both? When to raise the necessary finance from the money market or capital market? It is also planning to list itself in New York Stock Exchange to raise money through ADRs. To make its offerings attractive, it is planning to offer the host of financial plans and products to its stakeholders and investors and also expand its listing at NSE after complying with the regulations of SEBI.
What are the regulations of SEBI that the company must comply with?
Following are the regulations of the SEBI for new issue that the company must comply with :
(i) Prospectus has to be attached with every application.
(ii) Objective of the issue and cost of project should be mentioned in the prospectus.
(iii) Company's management, past history and present business of the firm should be highlighted in the prospectus.
(iv) Subscription list for public issue should be kept open for a minimum of 3 days and maximum of 10 days.
(v) Collections agents are not allowed to collect application money in cash.
(vi) Issue should make adequate disclosure regarding the terms and conditions of redemption, security conversion and other relevant features of the new instrument, so that an investor can make reasonable determination of risks, returns, safety and liquidity of the instrument. The disclosure shall be vetted by SEBI in this regard.
Following are the regulations of the SEBI for new issue that the company must comply with :
(i) Prospectus has to be attached with every application.
(ii) Objective of the issue and cost of project should be mentioned in the prospectus.
(iii) Company's management, past history and present business of the firm should be highlighted in the prospectus.
(iv) Subscription list for public issue should be kept open for a minimum of 3 days and maximum of 10 days.
(v) Collections agents are not allowed to collect application money in cash.
(vi) Issue should make adequate disclosure regarding the terms and conditions of redemption, security conversion and other relevant features of the new instrument, so that an investor can make reasonable determination of risks, returns, safety and liquidity of the instrument. The disclosure shall be vetted by SEBI in this regard.
