SEBI Notifies Amendment to Regulations regarding Issue of Capital and Disclosure Requirements

The Securities and Exchange Board of India(SEBI) has notified amendment to Regulations regarding Issue of Capital and Disclosure Requirements via issuing Notification.

The Notification Stated, “In exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.”

These regulations may be called the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2022. They shall come into force on the date of their publication in the Official Gazette:

Notification Provided that the amendments to paragraph (9) of Part A of Schedule VI shall be applicable for all issues where Red Herring Prospectus is filed with the Registrars of Companies on or after the date of publication of this notification in the Official Gazette.

In Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018,-

I. in regulation 25, in sub-regulation (1) the words ―with the concerned regional office of the Board under the jurisdiction of which the registered office of the issuer company is located‖ shall be substituted with the words ―with the Board‖.

II. after Chapter II and before Chapter III, the following Chapter IIA shall be inserted.

In Chapter IIA Sec 59A Defines-

(a) “pre-filed draft offer document” shall mean draft offer document filed with the Board under this Chapter;

(b) “pre-filed offer document” shall mean pre-filed draft offer document or updated draft red herring prospectus-I or updated draft red herring prospectus-II with the Board under this Chapter;

(c) “updated draft red herring prospectus-I” shall mean the updated pre-filed draft offer document filed with the Board after complying with the observations issued by the Board on such pre-filed draft offer document;

(d) “updated draft red herring prospectus-II” shall mean the updated draft red herring prospectus-I filed with the Board after incorporating the comments of the public received on such updated draft red herring prospectus-I.

Section 59B –

(1) In lieu of an initial public offer of specified securities on the Main Board under Chapter-II of these regulations, the issuer may make an initial public offer of specified securities in accordance with the provisions of this Chapter.

(2) Except for anything contrary provided in this Chapter, the provisions of Chapter-II shall mutatis mutandis apply in relation to the initial public offer made under the provisions of this Chapter: Provided that regulation 8 and regulation 15 of these regulations shall apply at the stage of filing of the updated draft red herring prospectus-I.

To Read More Download PDF Given Below: