Sebi to allow 30 firms to raise funds quickly

In a bid to encourage Indian corporates raise money domestically, the Securities and Exchange Board of India (Sebi) is in the process of rolling out a package.The package, Sebi chief M Damodaran said, will help corporates raise capital at an advantageous cost and within a shorter timeframe.

The first move would be to announce the framework for fast-track issuances, wherein listed companies with proven track records would be able to raise money immediately after filing with Sebi.The draft of the proposal has been approved by the primary market committee, Damodaran said.

This would be on the lines of the Well Known Seasoned Investor or WKSI model in the US. It’s likely to be introduced by the end of this month.Damodaran said that about 30 Indian companies, which comply with the norms set by the committee, will be allowed such issuances.

According to the draft guidelines issued on August 24, 2007, such companies would have to be listed on the BSE or the NSE for at least three years and must have an average free-float market capitalisation of at least Rs 10,000 crore during the past year.