Fast Track Issues

capital
from the capital market by companies
of raising
speedier
process

in the
regulations.
The oility criteria includes:
Eligihil:

issue is a
set out
a
Fast
track criteria
public issues and Rs
for pub O crore for
the
eligibility
of Rs
1000
crore

ions rights
satisfying
market
capitalisation

no major
audit
qualificatione
impacting the profits
minimum

listing for
three years,
with
rities laws and
securities dressal of complaints.
issues,
minimum
compliance
funds a by public or rights issue By
record of raise fur
to raise
able to
and a
clean
track
will be hout
issuer
company
of the
offer document with SEBI and
with

this process,
the
process
of filing getting its
through
the lengthy
going
observations.
(Regulation 226)
track issues
criteria for fast
Eligibility the following:
include
issues
criteria for fast track
The eligibility af at least Rs.1,000 crore or more durir
least Rs.1,000 during last one year
capitalisation
of at
market
(a) Average
agreement
with the listing
(b) Compliant
form
necessarily held
in dematerialised
shares are
Promoter group
(c)
during tne d C d i e n d a r months immediately orecerinn the
the stock exchanges
(d) Trading on
constitute at least
20 Or total listed shares durine the r

month of reference date

year
qualifications in the
audited accounts, if any, not exceedine 59% nf the
(e) Impact of auditors
FPOS) and no qualifications
in the audited accounts (for rights issues) )-
net profit/loss(for
redressing shareholders/investor grievances
Excellent track record in

or show cause notice issued by SEBI pending against the

(g) No prosecution proceedings
time directors,
company/its promoters/whole
the provisions of regulation 222(1) and 222(1), h and
If the above conditions are satisfied,
a fast track issue.
(3) shall not apply and the issue will be

Advantages to the issuer company

as under.
issuer company are
The advantages of a fast track issue to the
and no requirement of getting
only
document with SEBI for record purposes
(a) FIling the offer
the observation from SEB tor
the stock
exchanges ign
document with ROC for FPOs and
() Direct filing of the offer
issues

c) Less stringent disclosure requirements

nkers
requirements for merchant Danike
(0) Less stringent due diligence

(e) Higher credibility with the investor

 Eligibility conditions for fast track issue [regulations 155-156 (for fast track FPOs) and
regulation 99 (for fast track rights issue)]
(a) Equity Shares Listed for at least Three Years-The equity shares of the issuer have heen
listed on any recognised stock exchange having nationwide trading terminals for a period of
at least three years immediately preceding the reference date;

"Reference date" means the date of registering the red herring prospectus (in case of a book
built issue) or prospectus (in case of a fixed price issue) with the Registrar of
Companies
FPOS) and date of filing of the letter of offer with the designated stock exchange (for fast track
(for
rights issues)
(6) Entire Promoter Shareholding in Demat Form-The entire shareholding of the promoter
group of the issuer is held in dematerialised form on the reference date.

Me) Average Market Capitalisation of Public Shareholding-The average market capitalisation

of public shareholding (as defined in the equity listing agreement) of the issuer is at least Rs
1000 crore for public issue and Rs 250 crore for rights issue; "Average market capitalisation
ofpublic shareholding" means the sum of daily market @'capitalisation of public shareholding
for a period of one year up to the end of the quarter preceding thee month in which the
proposed issue was approved by the shareholders or the board of the issuer, as the case may
be, divided by the number of trading days.

"Public shareholding" shall have the same meaning as assigned to it under the Securities
Contracts (Regulation) Rules, 1957.

(d) Trading Turnover-The annualised trading turnover of the equity shares of the issuer during
six calendar months immediately preceding the month of the reference date has been

a. at least 2% of the weighted average number of equity shares listed during such six
months' period, for issuers where the public shareholding is 15% or more.
b. at least 2% of the weighted average number of equity shares available as free float
during such six months' period, for issuers with public shareholding less than 15%.
(e) Delivery-based trading turnover of at least 10%-Annualized delivery-based trading In
turnover of the equity shares during six calendar months immediately preceding the month
of the reference date has been at least ten per cent, of the annualised trading turnover of the

equity shares during such six months' period;

with the equity
() Compliance with Listing Requirement-The issuer has been in compliance
reference
isting agreement for a period of at least three years immediately preceding the
date;
or d
5 Adequate Disclosure where Equity Listing Agreement Relating to Composition boa
Complied with Only at Time of Offer Document-f the issuer has not complieo
OTthe
quarter during
equity
l a sthe
t
listing agreement relating to composition of Board of directors, IO a
last three vears immediately preceding the reference date, Dut is
or
with document with the ROc
provisions at the time of filing of offer
designated stoe are de
mdue
EXChange, as the case may be, and adequate disclosures
 (h)Redressed 95% of
Investor
complaints received from the Complaints-The issuer has redressed at least 95% of the
month of the reference investors till the end of the
date; quarter immediately preceding the
() No Show Cause
Notice or
Prosecution Proceedings
es Snouid have
been issued or by Board-No show-cause ine
the
against the issuer or its prosecution proceedings initiated by the Board or pending8
promoters or whole time directors as on the reference date,
J)Not Settled
any Alleged Violation of
iechanism-The issuer or promoter or
Securities Laws through the Consent or Settlement
Setied any
promoter group or director of the issuer has not
alleged violation of securities laws through the consent or settlement mechanism
with the Board
during the three years immediately preceding the reference date;

(k) No Suspension of the Equity Shares of the Issuer during the Last Three Years-The equity
shares of the issuer have not been suspended from trading as a disciplinary measure during
last three years immediately preceding the reference date.

() No Conflict of Interest-There shall be no conflict of interest between the lead merchant

banker(s) and the issuer or its group or associate company in accordance with
applicable
regulations.
m) Impact of Auditors Qualification not to Exceed 5% of Net Profit-The
impact of auditors
qualifications, any, the audited accounts of the issuer in respect of those financial
if on
years
for which such accounts are disclosed in the offer document does
not exceed 5% of the
or loss after tax of the issuer for the profit
respective years (for afast track public issue).
No Audit
qualifications for a rights issue: There
audit qualifications on the audited accounts of
are no
the issuer in respect of those financial
years for which such accounts are disclosed in the letter
of offer.

(n) in Case of Rights Issue, Promoters and Promoter Group shall Subscribe to
of their Rights-In
case a rights issue, promoters and promoter group shall
rights entitlement and shall not renounce their mandatorily subscribe to their
within the promoter
rights, except to the extent of renunciation
group or for the purpose of
shareholding norms prescribed under complying with minimum public
rule 19A of the SCR Rules.
(0) Filing of offer document with SEBI and the
meets the recognized stock exchanges-In case the issuer
eligibility conditions for a fast track issue, the issuer shall file the offer document
with SEBI and the
recognised stock exchanges simultaneously while
prospectus, red herring prospectus or shelf registering the
the designated stock prospectus with the ROC or the letter of offer with
exchange through the lead merchant banker.
(P) Soft copy of offer document:
The offer document shall also be
specified in Schedule V to SEBI. The furnished in a soft copy as
in accordance with document shall also be accompanied with the fees to
SEBI
Schedule IV of the ICDR Regulations.
 oubmission of due diligence certificate: The
the
following documents along with the manager(s)
lead shall submit to tne
boara
d
offer document:
aue
diligence certificate as per
as Form A of Schedule
specified in Form E of V including additional contirmations
Schedule V:
dSe or a fast
the
track issue of convertible debt
instruments, a due diligence certificate from
debenture trustee as per Form B of Schedule V.