Indian capital market is essentially governed by acts, rules, regulations, policies and procedures promulgated by Securities & Exchange Board of India or SEBI and Reserve Bank of India (RBI). Both SEBI and RBI play a vital role in setting the macro environment & limits within which one can play to raise FDI (Foreign Direct Investments) or Funds from FII’s (Foreign Intuitional Investors), Banks, General public etc. For getting funds from above said resources there is a need of using or floating an instrument depending upon the size, terms, time horizon, industry etc. These instruments can be Commercial papers (CP’s), Non-convertible debentures (NCD’s), Indian Public Offerings (IPO), Foreign Currency Bonds, Global Depository Receipts (GDR), Qualified institutional Placements (QIPs), Equity or preference shares etc.

All these instruments are governed by a set of rules prepared by above said regulators. With passage of time in most of the cases the rules are well settled and procedures well established requiring the following of a prepared check list. Change in rules if any can be tackled at relevant times by in-depth study whenever needed.

There can be cases of ongoing activities like ESOP, Buy Back, Follow on offers, Right issues, Bonus issues, Auction Sales, Takeover (hostile or with consent), delisting, relisting  etc.

In all the cases the role of merchant banker, registrar of share transfer, NSDL, CDSL, legal advisor is crucial to achieve the desired objective.