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fast track issue

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked almost 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> FAST TRACK ISSUE --Fast rack issue is a faster and cost effective method of raising capital by listed companies.It means the listed companies can accept the indian primary market for raising the capital through public issue --SEBI has introduced this FTI in order to enable well established and compliant listed companies satisfying certain specific entry norms/conditions to access Indian Primary Market in a time effective manner. --Entry Norms for companies seeking to access Primary Market through FTI’s in case aggregate value of securities including premium exceeds Rs. 50 lacs. The following are the eligibility criteria and: (i) The shares of the company have been listed on any stock exchange having nationwide terminals for a period of at least three years immediately preceding the date of filing of offer document with RoC/ SE. (ii) The “average market capitalisation of public shareholding” of the company is at least Rs. 10,000 crores for a period of one year up to the end of the quarter preceding the month in which the proposed issue is approved by the Board of Directors / shareholders of the issuer; (iii) The annualized trading turnover of the shares of the company during six calendar months immediately preceding the month of the reference date has been at least two percent of the weighted average number of shares listed during the said six months period; (iv) The company has redressed at least 95% of the total shareholder / investor grievances or complaints received till the end of the quarter immediately proceeding the month of the date of filing of offer document with RoC/ SE. (v) The company has complied with the listing agreement for a period of at least three years immediately preceding the reference date; (vi) The impact of auditors’ qualifications, if any, on the audited accounts of the company in respect of the financial years for which such accounts are disclosed in the offer document does not exceed 5% of the net profit/ loss after tax of the company for the respective years. (vii) No prosecution proceedings or show cause notices issued by the Board are pending against the company or its promoters or whole time directors as on the reference date (viii) The entire shareholding of the promoter group is held in dematerialised form as on the reference date.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Fast rack issue is a faster and cost effective method of raising capital by listed companies.It means the listed companies can accept the indian primary market for raising the capital through public issue SEBI has introduced this FTI in order to enable well established and compliant listed companies satisfying certain specific entry norms/conditions to access Indian Primary Market in a time effective manner.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

**FAST TRACK ISSUE** FAst track issue means the listed companies can raise capital in faster and effective way. This means that listed companies can raise capital through primary market through public issue without complying with the regulations 6,7 and 8 which is related to filing of documents and forms To reduce this process of submission of forms and documents SEBI has come up with fast track mechanism for issue of securities which would allow companies to raise funds in faster way. Not all companies can raise money through fast track issue Thanks

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Open uri20170510 32134 1nqu8aj?1494421649 sowmya answered almost 3 years ago

Hai uma Your question is about FAST TRACK ISSUE [FTI] and here it goes Fast rack issue is a faster and cost effective method of raising capital by listed companies.It means the listed companies can accept the indian primary market for raising the capital through public issue SEBI has introduced this FTI in order to enable well established and compliant listed companies satisfying certain specific entry norms/conditions to access Indian Primary Market in a time effective manner. Such companies can proceed with FPOs / Right Issues by filing a copy of RHP (red herring prospectus) / Prospectus with the Registrar of Companies (RoC) or the Letter of Offer with designated Stock Exchange (SE), SEBI and Stock Exchanges. Such companies are not required to file Draft Offer Document for SEBI comments and to Stock Exchanges. Entry Norms for companies seeking to access Primary Market through FTI’s in case aggregate value of securities including premium exceeds Rs. 50 lacs. The following are the eligibility criteria and: (i) The shares of the company have been listed on any stock exchange having nationwide terminals for a period of at least three years immediately preceding the date of filing of offer document with RoC/ SE. (ii) The “average market capitalisation of public shareholding” of the company is at least Rs. 10,000 crores for a period of one year up to the end of the quarter preceding the month in which the proposed issue is approved by the Board of Directors / shareholders of the issuer; (iii) The annualized trading turnover of the shares of the company during six calendar months immediately preceding the month of the reference date has been at least two percent of the weighted average number of shares listed during the said six months period; (iv) The company has redressed at least 95% of the total shareholder / investor grievances or complaints received till the end of the quarter immediately proceeding the month of the date of filing of offer document with RoC/ SE. (v) The company has complied with the listing agreement for a period of at least three years immediately preceding the reference date; (vi) The impact of auditors’ qualifications, if any, on the audited accounts of the company in respect of the financial years for which such accounts are disclosed in the offer document does not exceed 5% of the net profit/ loss after tax of the company for the respective years. (vii) No prosecution proceedings or show cause notices issued by the Board are pending against the company or its promoters or whole time directors as on the reference date (viii) The entire shareholding of the promoter group is held in dematerialised form as on the reference date.

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