SEBI relaxations help companies raise capital amid COVID pandemic: Official

The relaxations in regulationsmade by the Securities and Exchange Board of India SEBI toprovide more leeway for companies to raise funds has apositive impact on the corporate sector, amid the COVID-19pandemic, an official said on Wednesday.The capital market saw companies successfully raisingfunds using rights issues of Rs 60,988 crore in 2020, he said.We have given a lot of relaxations in regulations tohelp companies raise capital.

The relaxations in regulationsmade by the Securities and Exchange Board of India (SEBI) toprovide more leeway for companies to raise funds has apositive impact on the corporate sector, amid the COVID-19pandemic, an official said on Wednesday.

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

''We have given a lot of relaxations in regulations tohelp companies raise capital. Bank credit is still the singlelargest fund-raising instrument with 50 per cent share. But ithas recently moderated.

''It is hoped that the bond market will play animportant role in the financing requirements,'' SEBI whole timemember Anant Barua said at an event organised by MCCI.

He said the issuance of corporate bonds was noteworthyand seamless with different kind of issues like green bondsand urban local bodies raising funds to support theirdevelopment activities.

Corporate bonds account for 31 per cent of the totalcredit requirements, followed by external commercialborrowings for 15 per cent and commercial papers for four percent.

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

Speaking about SMEs, he said small firms also raisedcapital from SME exchanges of BSE and NSE, totalling over Rs6,500 crore, and over 150 units were able to move to mainexchanges.