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SEBI Amends ICDR Regulations In Respect Of Non Requirement Of Minimum Promoters’ Contribution

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SEBI Amends ICDR Regulations In Respect Of Non Requirement Of Minimum Promoters’ Contribution
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The Security and Exchange Board of India (SEBI) notified the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2021 which further amend the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 in respect of non requirement of minimum promoters’ contribution.

The new Amendment notified under Regulation 112 which states the cases in which the promoter’s contribution is not required. Under the said Regulations where the equity shares of the issuer are frequently traded on a stock exchange for a period of at least three years immediately preceding the reference date, the issuer has redressed at least ninety five per cent of the complaints received from the investors till the end of the quarter immediately preceding the month of the reference date and the issuer has been in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for a minimum period of three years immediately preceding the reference date.

It further stated that if the issuer has not complied with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, relating to composition of board of directors, for any quarter during the last three years immediately preceding the date of filing of draft offer document/offer document, but is compliant with such provisions at the time of filing of draft offer document/offer document, and adequate disclosures are made in the offer document about such non-compliances during the three years immediately preceding the date of filing the draft offer document/offer document, it shall be deemed as compliance with the condition.

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