Markets regulator Sebi on Thursday floated a consultation paper on certain aspects of the Superior Voting Rights Share (SR share) Framework, including net worth requirements of SR shareholders.
In addition, suggestions from the public have been sought with regard to issuance of SR shares to trusts and other entities on behalf of promoters and the timing of the issuance of such shares, according to the consultation paper.
Market participants are of the view that certain aspects of the current framework on SR shares are onerous, which delays such issuer companies from raising funds from capital markets.
Sebi’s Primary Market Advisory Committee (PMAC) deliberated the matter and considered mandating the net worth requirement of SR shareholder on an individual basis. The threshold for such net-worth requirement can also be enhanced, the consultation paper noted.
Sebi has sought suggestions till July 30 on several aspects, including whether net-worth requirement for SR shareholders be determined individually or as part of the promoter group.
The regulator also asked whether the net-worth threshold for SR shareholders should be retained at Rs 500 crore or enhanced.
If it is to be enhanced then suggestions have been sought on the new threshold and whether the proceeds from sale of shares of the issuer company should be excluded while determining the net-worth.
