India Inc’s fund raising through primary market surged in June qtr: Sebi

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Kolkata | Published: July 24, 2015 12:15:33 AM

Fund raising by corporates through the primary market route has surged rapidly during the first quarter this fiscal compared to the last financial year...

Fund raising by corporates through the primary market route has surged rapidly during the first quarter this fiscal compared to the last financial year, Sebi chairman UK Sinha said on Thursday.

According to Sinha, while R9,750 crore had been raised during 2014-15 in the primary market by way of initial public offerings, placements and rights issues, around R9,800 crore was raised in the first three months of the current financial year.

“The appetite to raise money from primary market has improved in the current fiscal. During 2014-15, around Rs 3,000 crore was raised through IPOs while another R6,750 crore was raised through rights issue. Compared to this, Rs 9,800 crore has already been raised from the primary market in the first quarter of 2015-16,” Sinha said at an event organised by the Bharat Chamber of Commerce.

He said there was a healthy pipeline of IPOs through which issuers were looking to raise about R10,000 crore equity capital for the rest of the year.

Fresh regulations for algo trading

Sinha also said Sebi will come up with fresh regulations within the next two months for high-speed or algorithmic trading to make it safer.  “Limiting speed is one of the measures proposed to reduce risk of such trades,” he said.

Sinha said the state governments should play a pivotal role to weed out the illegal money-collection schemes in the respective states and Sebi would work in tandem with the governments for this purpose. “This (ponzi scheme) is a matter which cannot be controlled by one central agency,” he averred.

Twenty states so far, have enacted legislation to protect depositors against unauthorised money-collection rackets, he added.

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