ISSUE OF CONVERTIBLE DEBT INSTRUMENTS AND WARRANTSSecurities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018
ISSUE OF CONVERTIBLE DEBT INSTRUMENTS AND WARRANTSSecurities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018
Promoters' contribution requirement must be secured pre-issue and held in escrow; convertible securities treatment and pricing rules specified. Minimum promoters' contribution requires promoters to subscribe a prescribed portion of the issue either in equity or by subscribing to convertible ... Summary
Promoters' contribution requirement must be secured pre-issue and held in escrow; convertible securities treatment and pricing rules specified.
Minimum promoters' contribution requires promoters to subscribe a prescribed portion of the issue either in equity or by subscribing to convertible securities; if conversion price or post-conversion equity price is not pre-determined and disclosed, contribution must be by subscription to the convertible securities with a written undertaking to subscribe on conversion. Where conversion price is pre-determined, promoter equity contribution must not be at a price below the weighted average price on conversion; promoters must satisfy contribution before the issue opens and keep contribution proceeds in an escrow account until issue proceeds are released.
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