New Delhi: Market regulator Myself Reduced the minimum lock-in period for promoters’ investment after the initial public offering (IPO) from three years to 18 months under certain conditions.
This step has been taken at a time when many companies are looking to get listed on the stock exchanges.
along with Securities and Exchange Board of India (SEBI) has streamlined the disclosure requirements of group companies.
SEBI has said in a notification that if the object of the issue is an offer for sale or a project involving financing other than capital expenditure, the minimum promoter contribution of 20 per cent will be locked-in for 18 months. Date of allotment in IPO.
At present, the lock-in period is three years.
Capital expenditure includes civil works, miscellaneous fixed assets, purchase of land, building and plant and machinery, among others.
Further, the lock-in period has also been reduced to six months from the current one year for promoter holding of more than minimum 20 per cent stake.
The regulator has reduced the minimum lock-in of pre-IPO securities held by persons other than promoters to six months from the date of allotment. At present there is a lock-in period of one year.
Further, the regulator has reduced the disclosure requirements at the time of IPO.
The disclosure requirements in the offer documents in respect of group companies of the issuing company have been rationalized to exclude financial disclosure of the top 5 listed or unlisted group companies.
These disclosures will continue to be made available on the website of the group companies.
“If the issuer is not a government company, statutory authority or corporation or any special purpose vehicle set up by any of them, the names and registered office addresses of all the group companies shall be disclosed in the offer document,” Sebi said. Said. In the notification dated 13 August.
To give effect to this, SEBI has amended the ICDR (Issue of Capital and Disclosure Requirement) Rules.
The move comes after the board of SEBI approved a proposal in this regard earlier this month.
This step has been taken at a time when many companies are looking to get listed on the stock exchanges.
along with Securities and Exchange Board of India (SEBI) has streamlined the disclosure requirements of group companies.
SEBI has said in a notification that if the object of the issue is an offer for sale or a project involving financing other than capital expenditure, the minimum promoter contribution of 20 per cent will be locked-in for 18 months. Date of allotment in IPO.
At present, the lock-in period is three years.
Capital expenditure includes civil works, miscellaneous fixed assets, purchase of land, building and plant and machinery, among others.
Further, the lock-in period has also been reduced to six months from the current one year for promoter holding of more than minimum 20 per cent stake.
The regulator has reduced the minimum lock-in of pre-IPO securities held by persons other than promoters to six months from the date of allotment. At present there is a lock-in period of one year.
Further, the regulator has reduced the disclosure requirements at the time of IPO.
The disclosure requirements in the offer documents in respect of group companies of the issuing company have been rationalized to exclude financial disclosure of the top 5 listed or unlisted group companies.
These disclosures will continue to be made available on the website of the group companies.
“If the issuer is not a government company, statutory authority or corporation or any special purpose vehicle set up by any of them, the names and registered office addresses of all the group companies shall be disclosed in the offer document,” Sebi said. Said. In the notification dated 13 August.
To give effect to this, SEBI has amended the ICDR (Issue of Capital and Disclosure Requirement) Rules.
The move comes after the board of SEBI approved a proposal in this regard earlier this month.
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