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SEBI sets cap on application money; requires issuer to demand 25% of issue price in case of part payment

1.These regulations may be called the SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2015.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, (i) in regulation 4, in sub-regulation (3), – A. in clause (a), the word twelve shall be substituted with the word eighteen; B. in clause

(b), the symbol ” . ” shall be substituted with symbol ” ; ” ;

C. after clause (b), the following new clauses shall be inserted, namely:- (c) the price or conversion formula of the warrants shall be determined upfront and at least 25% of the consideration amount shall also be received upfront;

(d) in case the warrant holder does not exercise the option to take equity shares against any of the warrants held by him, the consideration paid in respect of such warrant shall be forfeited by the issuer.

2 (ii) in regulation 54, in sub-regulation (7), in the proviso, the words, numbers and symbol the part payment on application shall not be less than 25% of the issue price and shall be inserted after the word and symbol investors,

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eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

One response to “SEBI sets cap on application money; requires issuer to demand 25% of issue price in case of part payment”

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