JSA are most popular:
- within International Law, Law Department Performance and Consumer Protection topic(s)
- with readers working within the Law Firm industries
SEBI, vide notification dated May 17, 2024, has issued the (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2024 amending the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, with an aim to expand the scope of entities eligible to contribute towards capital issues, especially by nonindividual public shareholders and entities within the promoter group holding at least 5% of the post-issue capital. Some of the key amendments are as follows:
- under minimum promoters' contribution, if the post-issue shareholding of the promoters is less than 20%, any non-individual public shareholder holding at least 5% of the post-issue capital or any entity forming part of promoter group other than the promoter(s), may contribute to meet the shortfall in minimum contribution as specified for the promoters;
- specified securities acquired by any non-individual public shareholder holding at least 5% of the post-issue capital or any entity (individual or non-individual) forming part of promoter group other than the promoter(s) during the preceding one year at a price lower than the price at which specified securities are being offered to the public in the initial public offer will not be eligible for the computation of minimum promoters' contribution;
- for the computation of minimum promoters' contribution, equity shares arising from the conversion or exchange of fully paid-up compulsorily convertible securities, including depository receipts, that have been held by the promoters at least 1 (one) year prior to the filing of the draft offer document forming part of promoter group other than the promoter(s) will be eligible, provided full disclosures of the terms of conversion is made, and they are converted into equity shares prior to filing of the red herring prospectus; and
- with respect to the period of subscription, in case of a force majeure event, the issuer may, for reasons to be recorded in writing, extend the bidding (issue) period disclosed in the red herring prospectus (in case of a book built issue) or the issue period disclosed in the prospectus (in case of a fixed price issue), for a minimum period of 1 (one) working day (earlier this was 3 (three) working days);
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
