An ancient institution
The capital market is the barometer of any country’s economy and provides a mechanism for capital formation. Across the world, there was a transformation in the financial intermediation from a credit based financial system to a capital market based system which was partly due to a shift in financial policies from financial repression (credit controls and other modes of primary sector promotion) to financial liberalization. This led to an increasing significance of capital markets in the allocation of financial resources.
The efficiency of a capital market, which can be defined in terms of its ability to reflect the impact of all relevant information in the prices of the securities and large number of profit driven individuals who act dependently on one another, has grown tremendously in the Indian context.
A developed securities market enables all individuals, no matter how limited their means, to share the increased wealth provided by competitive private enterprise. The players involved in the capital market include small investors, mutual funds, banks, companies and financial institutions.
Our Capital Markets team is one of the players involved in such capital markets.
Our Capital Market team advises on matters relating to IPO (Initial Public Offerings), FPO (Follow-on Public Issues), QIPs (Qualified Institutional Placements), OFS (Offer for Sale) with listing on Indian bourses such as NSE, BSE and MCX. Takeover of listed companies, Buyback of Shares, Delisting and Domestic Debt/Bond Issues such as Non-Convertible Debentures (NCDs) for companies spread across various sectors.
Our team has the experience and expertise to undertake legal diligence and preparing offer documents for public offers in compliance with Indian regulations. We have represented issuer companies, promoters, merchant bankers and underwriters in various public offerings. We assist issuers and the merchant bankers in dealing with queries raised by the regulators to enable smooth public issue and listing of shares on the bourses.
In addition to the above, we offer advice on investigations and proceedings initiated by SEBI for violation of securities market regulations and non-compliances. We offer the following services under this domain:
- Understanding the alleged violations and market dynamics;
- Understanding the procedure or process of inquiry and taking appropriate steps to comply with them;
- Preparing replies and submissions to letters viz. Request for Information, Summons, Show Cause Notices (SCNs) etc.;
- Appearing and making representations on behalf of clients at hearings/meetings before the SEBI officials and Securities Appellate Tribunal (SAT);
- Preparing and filing appeals before SAT against the orders of SEBI;
- Briefing counsels for appearance before SEBI & SAT, where required by the client;
- Considering the nature of non-compliance or irregularities of SEBI Regulations in order to advise the client on compounding the offence by filing consent application; and
- Preparing and filing consent applications before SEBI and appearing before the SEBI officials in relation to the same.
As for International Capital Markets, our team has the experience and expertise to undertake legal diligence and draft offer documents for international offerings in compliance with overseas regulations. We have represented issuer companies, merchant bankers and underwriters in various such offerings. We assist the issuer companies and merchant bankers in dealing with queries raised by regulators and liaise with nomads and overseas stock exchanges for international offerings.
Our Firm completed its 108 issue in October 2015, which includes GDRs, FCCBs and QIPs. The 108 successful issues comprised the entire gamut of services from preparing the roadmap of the issue, legal diligence, offering circulars to listing of the securities on the overseas stock exchanges, and each of them handled by our Firm. When we state, we have experience in International Capital Markets, we can proudly say, we have a century old experience.
Our firm has positioned itself as the leading advisor in the Asian Market, "Rajani Associates" market leader status has been recognised by no less than Bloomberg Legal League table for our contribution to the capital market space.