ASIC has issued a consultation paper in order to gauge market sentiment about proposed changes to some regulations governing capital raising activities.
Specifically, the corporate watchdog is looking to refine some of the exemptions it has already offered in relation to equity capital raising.
The consultation paper contains proposals to allow listed managed investment schemes to make placements at a 10 per cent discounted level against the current market price of their units.
It also proposes that more capital raising activities take place with the ability of the rights issuer to use a cleansing notice in place of the usual prospectus or product disclosure statement.
The paper also proposes underwriters and large shareholders take part in the rights issues even if it means the 20 per cent holding takeover threshold may be breached in the process.
ASIC said it only intends to go through with the changes if the market remains fully informed at all times, investors are fully informed before they purchase the securities and retail investors are still given the opportunity to participate in the raisings at a fair price.
Also, the regulator said the risk of any unacceptable transfer of control from the process must be minimal should the changes proceed.
Comments on the discussion paper need to be submitted before 30 March 2008.
