The Securities and Exchange Board of India (SEBI) is considering a product that combines rights issues and preferential allotments to expedite fundraising, as it believes this would cut the required time by half. 

The capital market regulator’s objective is to simplify the fundraising process by eliminating the need for a merchant banker and Sebi’s approval. The regulator is also working on a model  document that would help speed up approvals for initial public offerings (IPO).

Sebi chairperson Madhabi Puri Buch said on Friday that a combo product of rights issues and preferential allotments would bring out the best of both. “The entire end-to-end processing time will be cut down to half from the current 42 days,” she said.