ASIC has issued a consultation paper which considers refinement of measures to facilitate equity capital raising including modification of existing exemptions from disclosure requirements.

In the consultation paper, ASIC is proposing to allow:

• listed managed investment schemes to make placements at a discount of more than ten per cent to the current market price of their units;
• more rights issues and placements using a cleansing notice instead of a prospectus or PDS, even if a listed entity has been suspended for more than the current five day maximum period set out in the law;
• underwriters or large shareholders to participate in rights issues and dividend reinvestment plans even if they exceed the twenty per cent takeover threshold in doing so.

The Consultation Paper discusses ASIC's expectations that the issuer of securities during a placement or other capital raising must take steps to ensure:

• the market is fully informed at all relevant times;
• investors are fully informed before they agree to buy securities;
• retail investors are able to participate in equity capital raisings, to the extent possible and at a fair price; and
• there is minimal risk of any unacceptable transfer of control resulting from the equity capital raising.

Comments on the consultation paper are due by 30 March 2009.