SEBI relaxations help companies raise capital amid COVID pandemic: Official

Kolkata, Feb 10 (PTI) The relaxations in regulations made by the Securities and Exchange Board of India (SEBI) to provide more leeway for companies to raise funds has a positive impact on the corporate sector, amid the COVID-19 pandemic, an official said on Wednesday.

The capital market saw companies successfully raising funds using rights issues of Rs 60,988 crore in 2020, he said.

“We have given a lot of relaxations in regulations to help companies raise capital. Bank credit is still the single largest fund-raising instrument with 50 per cent share. But it has recently moderated.

“It is hoped that the bond market will play an important role in the financing requirements,” SEBI whole time member Anant Barua said at an event organised by MCCI.

He said the issuance of corporate bonds was noteworthy and seamless with different kind of issues like green bonds and urban local bodies raising funds to support their development activities.

Corporate bonds account for 31 per cent of the total credit requirements, followed by external commercial borrowings for 15 per cent and commercial papers for four per cent.

Barua said the Union budget will further boost the bond and debt markets.

Speaking about SMEs, he said small firms also raised capital from SME exchanges of BSE and NSE, totalling over Rs 6,500 crore, and over 150 units were able to move to main exchanges.