In a bid to offer a quicker and cost-efficient technique of raising capital by listed companies, capital market regulator SEBI has decided to bring out fast-track mechanism that would allow companies to raise funds from the markets in the least possible time.

The planned fast-track system was suggested by the Sebi’s Primary Market Advisory Committee (PMAC), and will be obtainable to companies that are listed on the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE) for at least 3-years.

The Sebi also has frame preconditions to be eligible for the fast track system, comprising excellent track record in rectifying investor complaints, compliant with the listing contract and promoter group stake in dematerialized form.

It has also conditioned that trading on the securities market should constitute at least 2 per cent of total listed shares in the last one year and the affect of Auditors qualifications in the audited accounts should not surpass 5 per cent of the net earnings or net loss after tax.

“No prosecution proceedings or show-cause notice issued by Sebi should be pending against the company, its promoters or whole-time directors,” it added.

The most recent Sebi plan is likely to reduce the time taken for ensuing issues.

According to the Sebi, the stock markets should give theoretically endorsement based on the board as well as shareholders’ resolution sanctioning the raising of capital. The brochure should be made by the lead managers according to the requirements of the Companies Act and Sebi rules and same should be registered with Sebi and stock markets for the recording purpose.