COMMON CONDITIONS FOR PUBLIC ISSUES AND RIGHTS ISSUES - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
COMMON CONDITIONS FOR PUBLIC ISSUES AND RIGHTS ISSUES - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
Preferential issue disclosure obligations require detailed explanatory disclosures, auditor certification and independent valuation where consideration is non cash. Regulation 73 requires that the explanatory statement for a shareholders' meeting concerning a preferential issue disclose the objects of the issue, ... Summary
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Preferential issue disclosure obligations require detailed explanatory disclosures, auditor certification and independent valuation where consideration is non cash.
Regulation 73 requires that the explanatory statement for a shareholders' meeting concerning a preferential issue disclose the objects of the issue, promoter/director subscription proposals, pre- and post-issue shareholding pattern, completion timeframe, identities of ultimate beneficial owners and any change in control, and undertakings to re-compute price and maintain lock-in until any recomputed price shortfall is paid; it also mandates a statutory auditor's certificate of compliance and independent valuation for non-cash consideration to promoters or related entities, with the special resolution specifying the relevant date for pricing convertible securities.
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