What do you mean by Fast Track Issues in the IPO market?

SEBI has introduced FTI in order to enable well-established and compliant listed companies satisfying certain specific entry norms/conditions to access Indian Primary Market in a time effective manner. Such companies can proceed with FPOs / Right Issues by filing a copy of RHP / Prospectus with the ROC or the Letter of Offer with designated Stock Exchanges and SEBI. Such companies are not required to file Draft Offer Document for SEBI comments and to Stock Exchanges. Entry Norms for companies seeking to access Primary Market through Fast track route:

(i) The shares of the company have been listed on any stock exchange having nationwide terminals for a period of at least three years immediately preceding the date of filing of offer document with ROC/ SE.

(ii) The “average market capitalisation of public shareholding” of the company is at least Rs.3000 crores;

(iii) The annualized trading turnover of the shares of the company during six calendar months immediately preceding the month of filing of offer document with ROC/ SE has been at least two percent of the weighted average number of shares listed during the said six months period: Provided that for issuers, whose public shareholding is less than fifteen per cent of its issued equity capital, the annualised trading turnover of its equity shares has to be at least two per cent of the weighted average number of equity shares available as free float during such six months’ period

(iv) The company has redressed at least 95% of the total shareholder / investor grievances or complaints received till the end of the quarter immediately following the month of the date of filing of offer document with ROC/ SE.

(v) The company has complied with the listing agreement for a period of at least three years immediately preceding the filing of offer document with ROC/ SE.

(vi) The impact of auditors’ qualifications, if any, on the audited accounts of the company in respect of the financial years for which such accounts are disclosed in the offer document does not exceed 5% of the net profit/ loss after tax of the company for the respective years.

(vii) No prosecution proceedings or show cause notices issued by the Board are pending against the company or its promoters or whole time directors as on the date of filing of offer document with ROC/ SE and (viii) The entire shareholding of the promoter group is held in dematerialised form as on the reference date.