Legal practitioners and in-house counsel share some of their predictions for the year ahead

Bhavna Thakur, director, capital markets origination equities, Citigroup Global Markets India: For the Indian economy and capital markets, 2012 has been roller-coaster ride. The year started off on a positive note, but markets soon lost steam amid the eurozone debt crisis and potential sovereign rating downgrade for India. Sentiments saw a reversal in September following a slew of reforms announced by the government and increased liquidity due to quantitative easing by major economies.

The pipeline of equity issuances continues to build and many quality issuers will be looking to raise growth capital by opportunistically tapping the markets in the first half of 2013. Another development to watch out for is the fast approaching June deadline set by the Securities and Exchange Board of India for companies to comply with the minimum public shareholding guideline. We should see several domestic companies as well as multinationals take the offer for sale (OFS) or institutional private placement route to achieve compliance. (For more on this topic see page 39.)

The new Companies Bill that was recently passed by the Lok Sabha has a few interesting implications for the capital markets. The bill enables public companies to make a private placement to not more than 50 persons, excluding qualified institutional buyers and employees of the company, implying that qualified institutional placements may not be restricted to only 49 investors. This is a big positive since it will not only enable more investors to participate in the offering but also enable foreign institutions to participate through multiple sub-accounts, which was previously highly restricted as each sub-account was considered a different investor.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.