Sebi and RBI Collaborate to Mitigate Market Volatility for Indian Companies
Sebi, RBI explore steps to shield companies from market volatility
The Economic TimesImage: The Economic Times
India's market regulator, the Securities and Exchange Board of India (Sebi), is discussing measures with industry representatives to help companies cope with market volatility. Concurrently, the Reserve Bank of India (RBI) is expected to announce support measures to stabilize the rupee and assist companies affected by the ongoing West Asia conflict.
- 01Sebi is considering a one-time 12-month extension for companies to meet public stock holding requirements.
- 02Industry representatives have proposed changes to facilitate quicker fund-raising methods.
- 03The RBI plans to introduce measures to stabilize the Indian rupee and support companies amid the West Asia conflict.
- 04Ficci has urged an increase in the creeping acquisition limit to 10% to enhance capital base.
- 05Both Sebi and RBI are responding to the economic challenges posed by increased global market volatility.
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The Securities and Exchange Board of India (Sebi) is actively engaging with industry representatives to discuss strategies aimed at helping companies navigate the current market crisis. This comes in light of significant declines in stock indices and heightened global volatility. Proposals from the Federation of Indian Chambers of Commerce & Industry (Ficci) include a one-time 12-month extension for companies to comply with the minimum public stock holding requirement of 25%, particularly for those facing deadlines by December 2026. Additionally, Ficci has recommended allowing preferential issues and block trades without caps for faster compliance, as well as enabling promoters to participate through the Qualified Institutional Buyer (QIB) route with proper safeguards. On another front, the Reserve Bank of India (RBI) is expected to announce measures this week to mitigate the impact of the West Asia conflict, focusing on stabilizing the Indian rupee, which has depreciated by 2.3% since the conflict began. Proposed actions may include improving capital inflows and providing additional support for micro, small, and medium enterprises (MSMEs) and exporters. These coordinated efforts from Sebi and RBI aim to bolster confidence among public shareholders and maintain economic stability in India.
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These measures aim to provide relief to companies struggling with market volatility, potentially leading to increased investor confidence and stability in the stock market.
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