SEBI Makes Policy Changes In Relation To Capital Markets Transactions

1. INTRODUCTION

The Securities Exchange Board of India ("SEBI") has, in its meeting held on December 28, 2021, approved certain changes to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, amended ("SEBI ICDR Regulations") that largely affect public offerings, preferential issues by listed companies, and to some degree, rights offerings. Pursuant to this meeting, SEBI has issued a press release ¹ ("SEBI PR"), summarizing these decisions. Most of these changes had previously been included in two consultation papers dated November 16, 2021 ² ("Public Offer Consultation Paper") and November 26, 2021 ³ ("Preferential Allotment Consultation Paper") that sought public comments on some of the policy changes for primary markets. In addition to the above, as per the SEBI PR, SEBI has also approved certain other changes, including several procedural changes, to other securities laws dealing with mutual funds,