Fast Tracking The Fund Raise: Eligible?

In a capital starved world, quick access to capital is like a dream come true. It not only enables ease of doing business, but also helps in achieving the growth plans and capex requirements in a timely manner. While the regulatory framework for fund raising on a preferential basis has been relatively lucid, rights issues (which prevents dilution risks) and further public offerings (for wider investor participation) are marred by extensive disclosure requirements and time-consuming regulatory approvals except in case of fast track issues.

SEBI introduced the "fast track" route for rights issues and FPOs to not only allow truncated disclosures in the offer document (primarily dispensing the restated financial statements requirement) but also allow listed companies, subject to certain eligibility conditions, to skip filing the draft offer document with SEBI for its approval. As a result, the listed entities save a substantial amount of time and resources that may go in