Specified securities, with the exception of SR equity shares held by promoters, may be pledged as collateral for a loan from a scheduled commercial bank: SEBI

Specified securities - SR shares - Promoters - Collateral - Guarantees - Loan granted - Scheduled commercial bank - SEBI - Taxscan

The Securities and Exchange Board of India (SEBI) has decided that the specified securities, except SR shares held by the promoters, can be pledged as collateral for a loan made by the Scheduled Commercial Bank.

SEBI has notified the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2022 which seeks to amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

In rule 7, after sub-regulation (2), in the explanation, the words “For the purposes of this rule” are replaced by the words and numbers “For the purposes of rule 6 and rule 7” . The amount for the purposes of the corporate purpose and the purposes for which the issuing company has not identified an acquisition or investment objective, as mentioned in the purpose of the issue in the draft information and the prospectus, cannot exceed thirty-five percent. the amount raised by the issuer. Subject to the condition that the amount raised for these objects when the issuing company has not identified an acquisition or investment objective, as mentioned in the objects of the issue in the draft offer document and the note of information, does not exceed twenty-five percent. Provided further that these limits do not apply if the purpose of the proposed acquisition or strategic investment has been identified and that appropriate specific information on such acquisitions or investments is made in the draft offer document and the prospectus at the time of the filing of the prospectus.

In Regulation 8, in the proviso after the explanation, the words, symbol and figures “under sections 391 to 394 of the Companies Act 1956” are to be omitted.

After Rule 8 and before Rule 9, Rule 8A is inserted, namely, Additional Terms for an Offer to Sell for Issues referred to in Subrule (2) of Rule 6. For matters where a draft circular is filed pursuant to sub-rule (2) of Article 6 of these Rules, the shares offered for sale to the public by one or more shareholders holding, individually or with persons acting in concert, more than twenty percent of the issuer’s pre-issue shareholding on a fully diluted basis, must not exceed more than fifty percent of their pre-issue shareholding on a fully diluted basis; and the shares offered for sale to the public by shareholders holding, individually or with persons acting in concert, less than twenty percent of the issuer’s pre-issue shareholding on a fully diluted basis, must not exceed more than ten percent of the pre-issue shareholding. -issue the shareholding of the issuer on a fully diluted basis; for shareholders holding, individually or with persons acting in concert, more than twenty percent of the issuer’s pre-issue shareholding on a fully diluted basis, the blocking provisions as specified in Article 17 of this regulations apply, and the relaxation of the lockdown provided for in sub-paragraph (c) of rule 17 of these regulations does not apply. »

Subscribe to Taxscan AdFree to see the judgment

Support our journalism by subscribing to Taxscan ad-free. follow us on Telegram for quick updates.

About Virginia Ahn

Check Also

The Crypto Crash: All Ponzi Schemes End Up Tipping | Robert Reich

OA week ago, as cryptocurrency prices plummeted, Celsius Network – an experimental cryptocurrency bank with …