ASIC to ease capital raisings rules
The Australian Securities and Investments Commission (ASIC) is proposing changes to the application of its regulatory framework to make it easier for companies to undertake capital raisings.
The regulator has issued a discussion paper on the issue claiming that its regulatory experience suggests that some existing exceptions from the regulations covering capital raisings may not be working.
In its discussion paper, ASIC has among other things suggested that underwriters and large shareholders be able to participate in rights issues and dividend reinvestment plans even if they breach the 20 per cent threshold in doing so.
At the same time, the regulator is suggesting that listed management investment schemes be capable of making placements at discounts of more than 10 per cent to the current market price of their units and that there be greater use of cleansing notices instead of prospectuses with respect to rights issues.
ASIC said the primary consideration in proceeding with the relief proposals would be whether investor protections could be maintained.
AUTHOR
Mike Taylor
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